Merchanto helps a popular AI voice generator reduce chargebacks by 99% and restore their Stripe account

Overview

Chargebacks can destroy even a transparent, customer-focused business – especially when operating a subscription-based model through Stripe.

One of the most popular AI voice generators faced this exact challenge: a sudden spike in chargebacks caused Stripe to block their merchant account and freeze all funds. This led to major financial losses and a real risk of losing the entire business.

Challenge

Unexpected problems caused by rapid growth.

The popularity of AI services surged in 2025. Our client’s company wasn’t ready for such explosive growth and transaction volume. While their usual 0.9% chargeback rate wasn’t critical at smaller volumes, everything changed once they reached 30,000+ transactions in June – followed by 270+ chargebacks in July.

Stripe immediately flagged and froze the account, halting all payouts and recurring payments from active subscribers. Without access to their funds, the company faced a full business shutdown.

To recover, they needed to implement industry-leading chargeback prevention tools fast – and prove to Stripe that the problem was solved for good.

Solution

A fast and reliable recovery – powered by Merchanto.

Our team connected the merchant to a full set of chargeback-prevention tools, so Stripe will restore the account and be confident that chargebacks won’t be a problem anymore.

Integrations completed:

• VISA Order Insight (Compelling Evidence 3.0) and Mastercard Consumer Clarity – fully integrated within a week. Merchanto helped the client set up an API to automatically respond to issuer requests with transaction details, deflecting chargebacks even without issuing refunds.

• Mastercard and VISA CDRN Chargeback Alerts – integrated in a few days to receive alerts directly from issuing banks, bypassing the PSP and allowing the merchant to issue a refund to avoid the chargeback.

• Visa Rapid Dispute Resolution (RDR) – enabled to automatically convert rarely appearing chargebacks into RDR cases that don’t impact the Stripe chargeback ratio.

• Stripe Automation – implemented to identify transactions and process refunds automatically, saving hours of manual work daily.

Once the integrations were live, the company presented the updates to Stripe – and the merchant account was successfully restored. We were excited to see the first month’s results.

Results

Record-breaking recovery with a 99% chargeback reduction.

After relaunch, the AI service carefully resumed recurring payments to monitor results. Within the first month, chargebacks almost disappeared. The next month, the merchant scaled up to full volume with even fewer disputes.

Stripe recognized the results and confirmed the account’s good standing, allowing the merchant to safely scale their processing volumes again – now with full chargeback protection in place.

Conclusion

The path to stable payment processing is simple when you prevent problems before they appear.

Don’t wait until your MID is suspended – it’s far better to stop chargebacks proactively than to recover from a ban later.

Merchanto protects your business from fraud and chargebacks – before they happen.

Ready to start? Join us today.