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Understanding Disputes, Risk Scores, Reserves, and Account Actions
Understanding Disputes, Risk Scores, Reserves, and Account Actions
Updated this week

At Whop, we strive to create a safe and reliable platform for both creators and customers. To maintain this environment, we have policies and procedures in place regarding disputes, risk assessments, and account actions. This article will help you understand these processes.

Resolution Center

Our Resolution Center is designed to help customers and creators resolve issues directly on the platform. Customers can request refunds for various reasons, such as:

  • Forgot to cancel

  • Item not received

  • Significantly not as described

  • Product unacceptable

  • Unauthorized charge

Specialists review each case and make a decision, acting as a mediator between the customer and creator.

Dispute Risk Score

A creator's Dispute Risk Score is calculated based on several factors, including:

  • The number of disputes they've had

  • Early dispute alerts

  • The number of Resolution Center cases opened by customers

The more dispute-related activity, the higher the score. We have thresholds in place to manage risk.

Reserves

To protect against potential losses from disputes and chargebacks, we may place reserves on a creator's account. The reserve percentage is determined by the Dispute Risk Score.

  • Dispute Risk Score 2-3: 25% reserve placed on their balance. Funds held for 30 days per transaction.

  • Dispute Risk Score 3-4: 50% reserve placed on their balance. Funds held for 30 days per transaction.

  • Dispute Risk Score 4-5: 75% reserve placed on their balance. Funds held for 90 days per transaction.

  • Dispute Risk Score 5+: 100% reserve placed on their balance. Funds held for 90 days per transaction and potential account suspension.

Suspensions

Accounts may be suspended for various reasons, including:

  • High Dispute Risk: If a creator's Dispute Risk Score exceeds 5, their account may be suspended. Funds will be held in reserve for at least 90 days.

  • TOS Violations: Violations of Whop's Terms of Service can lead to account suspension. Funds may be held for 90 days.

  • Negative Balances: If an account has a negative balance, payouts may be suspended until the balance is recovered. Accounts with balances below -$500 for more than 72 hours may be suspended if recovery fails.

TOS Violations

Whop is committed to ensuring all content is compliant with our Terms of Service (TOS). Violations can include:

  • Content that is not suitable for work (NSFW)

  • Illegal activities

  • IP Infringement, Copyright, IPTV

  • Unethical behavior

  • Violating 3rd Party TOS

  • Extreme content (i.e. terrorism threats)

We use both AI and specialists to monitor content on store pages, reviews, UGC (user-generated content), and abuse reports. Violations can lead to content removal, strikes, or account suspension.

Withdrawals and Payment Milestones

We review accounts when they reach payment milestones (e.g., first payment, $1k, $5k, etc.) to ensure compliance and manage risk. "Good" accounts with low risk scores have instant payouts enabled, while "bad" accounts with high risk scores or TOS violations may be suspended and placed on 100% reserve.

How to Avoid Issues

  • Maintain a low Dispute Risk Score: Encourage customers to use the Resolution Center and address concerns promptly.

  • Adhere to Whop's TOS: Ensure all content is compliant with our guidelines.

  • Keep your account in good standing: Avoid negative balances and respond to requests for information promptly.

If Your Account is Affected

If your account is suspended or placed on reserve, you will be notified and provided with information about the reason and next steps. You can contact our support team for assistance.

We hope this article helps you understand our policies and procedures. If you have any further questions, please don't hesitate to contact our support team.

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