Fraud and chargebacks
LatchPay Protect
The add-on for chargebacks and fraud: automatic actions on card-network alerts, evidence prepared and sent before the deadline, fraud rules at checkout, a blocklist, a chargeback ratio monitor and e-mail. Billed per store per fee week.
Updated
What it is
LatchPay Protect is an add-on per store. It handles what happens around a chargeback: it acts when a card network warns that one is coming, prepares the evidence for every chargeback and sends it before the deadline if you don't, runs the fraud rules at checkout, keeps a blocklist of buyers who disputed, watches your Visa and Mastercard chargeback ratio and e-mails you about all of it. Turn it on from the Chargebacks or Fraud & risk page; it starts with safe defaults that you can change.
LatchPay records the IP address, browser and a device id of every checkout for 13 months, on every store, whether Protect is on or not, so the evidence is ready from the day you turn it on.
Price and billing
€49 per store per month, on Starter and Scale alike, or a fixed amount in your store's currency: $55, £45, CHF 49, SEK 549, DKK 365, NOK 579, PLN 209, CA$75 or A$85; other currencies are converted from €49 at a fixed rate. It is billed with your weekly LatchPay fee, to the card on your LatchPay membership: every fee week (Monday to Sunday, UTC) in which it is on, even for part of a day, costs 12/52 of the monthly price, €11.31 in euros. The week you turn it on and the week you turn it off each count as a whole week. There is no trial, and billed weeks are not refunded. The 20% referral commission includes it. If the weekly charge fails, the usual fee rules apply.
When an alert arrives
Card issuers sometimes warn before a chargeback: an early fraud warning (from Whop, Stripe or Adyen) or a pre-dispute alert (from Whop). With the default settings LatchPay then refunds the payment in full when the order has not shipped and its total is at most €150 (or the same in your currency), stops the buyer's subscriptions with your store that were paid with the same card, device or network, and blocks the buyer at your checkout. Cancelling the Shopify order is off unless you switch it on; when LatchPay refunds an order it does not cancel, it tags the order latchpay-do-not-ship so it isn't shipped. An order bought one-click with it is flagged too, and you can refund it from the alert. Each action is a switch in Protect settings on the Chargebacks page.
LatchPay never refunds a payment twice, never refunds a payment that already has a chargeback (the chargeback decides), and never refunds a payment your provider already refunded. Every action, and the reason when one did not run, is listed with the alert under Alerts. An alert LatchPay did not refund can be refunded there with Refund now.
Evidence for every chargeback
When a chargeback opens, LatchPay prepares the evidence from the order, its delivery, the checkout records and, for a subscription, the terms the buyer accepted. Open the chargeback to read it, change any field, add your own files and submit it. If nobody submits it, LatchPay sends it 2 days before the deadline (choose 1 to 7 days in Protect settings) on Whop and Stripe; on Adyen you submit it yourself for now. Mollie can't take evidence from LatchPay, so for Mollie you get the text and a PDF to paste into your Mollie dashboard. On Stripe, sending evidence costs Stripe's counter fee, which Stripe returns if you win.
When the payment was refunded before the chargeback, the evidence says so first. LatchPay does not send evidence by itself when its own records argue against you (the buyer asked to cancel before the renewal was charged, the buyer paid twice for one checkout and the second payment was not refunded, or the order never shipped and was not refunded) or when the evidence at your payment provider was changed outside LatchPay. It e-mails you instead, and you can still submit the evidence or accept the chargeback yourself. A chargeback without a deadline, or one that opened before LatchPay Protect started, is never sent automatically.
At checkout
The fraud rules run only with LatchPay Protect (see How the fraud rules work). A buyer whose e-mail address or card is on your blocklist cannot pay at your checkout; an order that matches only a blocked device or IP address is charged and waits for your review instead. The buyer only sees "We could not complete this payment. Please contact the store."
Chargeback ratio
The Chargebacks page shows your Visa and Mastercard chargeback ratio on LatchPay payments, for this month and last month, updated every hour. LatchPay warns you at 1.0% and again at 1.3%, before the card networks' programmes start at 1.5%. The networks count every payment on your payment account, not only LatchPay's, so the ratio they see can differ.
E-mails
LatchPay e-mails you about every new chargeback and alert, what it did about each, deadlines 3 days and 1 day ahead, evidence it sent or held back, and your ratio. Add up to 5 more addresses, or switch these e-mails off, under Protect settings; each added address is told it was added and can stop the e-mails itself. The bell shows everything either way.
Whop's own tools
Whop can refund alerted payments and answer disputes itself. With LatchPay Protect on, change two settings in Whop. Set Whop's auto-refund limit ("Refund transactions lower than") to $168, the same as LatchPay's limit. Don't set it to $0 until LatchPay has checked how Whop handles Visa RDR. Turn Dispute fighter off, then tick the box in Protect settings. Whop refunds alerts up to that amount itself. LatchPay still stops subscriptions and blocks the buyer for every alert, and never refunds twice. It waits about 15 minutes before it refunds a Whop payment itself, in case Whop already did, and never answers a dispute twice either. Whop charges its alert fee for every pre-dispute alert, whether or not anyone refunds it.
Stripe and Adyen dispute prevention
Stripe and Adyen can settle some disputes before they become chargebacks, through Visa Rapid Dispute Resolution, Verifi and Ethoca. You enrol in your own Stripe or Adyen account; Protect settings explain how and what it costs. A settlement refunds the full payment, also for an order that already shipped, by the rules you set at Stripe or Adyen, not by your Protect settings. Disputes settled this way show under Alerts as Prevented and don't count as chargebacks. If Smart Disputes is on in Stripe, turn its automatic response off so LatchPay's evidence is the one sent.
What stays free
Without LatchPay Protect, every chargeback and alert is still recorded and synced every day, subscriptions still pause when their payment gets a chargeback or an alert, the bell reminds you 3 days and 1 day before an evidence deadline with a link to respond at your payment provider, and held orders can still be approved or rejected. LatchPay then screens no checkout and declines no buyer.
Turning it off
Deactivate it on the Fees page. Automatic actions and automatic evidence stop at once; evidence already sent stays sent. The week you deactivate it in is still billed; nothing after that. Your settings and blocklist are kept for when you turn it on again (blocklist entries still end on their own time). It also ends by itself when you disconnect the store or your LatchPay membership ends.