Why This Happens
Subscription-based businesses face unique enforcement risks on Stripe. High dispute rates from recurring charges — often caused by customers forgetting subscriptions, unclear cancellation processes, or confusing billing descriptors — trigger account reviews. Free-trial-to-paid conversions without clear customer notification are a particularly common trigger.
Example Notification
"We've identified elevated dispute rates associated with recurring charges on your account. Please review your subscription billing practices and address the root causes."
Compliance Steps
Audit all subscription-related chargebacks from the last 90 days
Update billing descriptors so customers recognize the charge
Send renewal reminder emails 3-7 days before each charge
Add a clear one-click unsubscribe option
Implement dunning emails for failed payments before they become disputes
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