# Configuring Auto-Refund Rules

> Set up automatic refunds for high-risk transactions and disputes to prevent chargebacks.

**Category:** chargeback-prevention | **Last updated:** March 13, 2026

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Fidro can automatically refund transactions that are likely fraudulent — before the customer files a chargeback. This guide explains how to configure auto-refund rules.

## Why auto-refund?

Chargebacks cost more than refunds. A chargeback typically incurs:
- The transaction amount (returned to the customer)
- A dispute fee from Stripe ($15–$25)
- Damage to your dispute rate (too many chargebacks can get your Stripe account shut down)

By auto-refunding high-risk transactions, you avoid the dispute fee and protect your chargeback ratio.

## Setting up auto-refund

Go to [Account Settings](/app/settings/account) and find the **Chargeback Prevention** section.

### Auto-refund high-risk transactions

Toggle this on to automatically refund transactions that score above your **refund threshold** (default: 71).

When enabled:
1. A payment succeeds on Stripe
2. Fidro analyses it and scores it above your threshold
3. Fidro issues a full refund via the Stripe API
4. The transaction is marked as "Refunded" in your dashboard
5. You receive an email notification (if notifications are enabled)

### Auto-refund on dispute

Toggle this on to automatically refund when Stripe notifies you of a chargeback dispute (`charge.dispute.created`).

When enabled:
1. A customer files a dispute with their bank
2. Stripe sends the dispute event to Fidro
3. Fidro issues a full refund (if not already refunded)
4. The transaction is marked as "Disputed" and "Refunded"
5. You receive an email notification

> **Tip:** Auto-refunding on dispute can help resolve the dispute in your favour, as Stripe may automatically close disputes when you issue a refund.

## Adjusting thresholds

The default thresholds are:

| Threshold | Default | Controls |
|-----------|---------|----------|
| Refund threshold | 71 | Scores ≥ this get the "refund" recommendation (and auto-refund if enabled) |
| Review threshold | 41 | Scores between review and refund thresholds get "review" recommendation |

To change these, update the values in your chargeback settings. The review threshold must be lower than the refund threshold.

**Conservative approach** (fewer false positives): Set refund threshold to 80+
**Aggressive approach** (catch more fraud): Set refund threshold to 60–70

## Notification emails

Add one or more email addresses to receive notifications for:
- **High-risk transaction alerts** — When a transaction scores above your refund threshold
- **Dispute alerts** — When a chargeback dispute is filed

Separate multiple emails with commas: `you@company.com, finance@company.com`

## Manual refund

If auto-refund is disabled, you can still refund individual transactions from the [Transactions page](/app/transactions). Click on a transaction and use the "Refund this transaction" button.