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:
Customer forgot to cancel subscription
Item not received
Significantly not as described
Product unacceptable or extremely poor quality
Unauthorized charge
The Resolution Center gives merchants the chance to review the case, submit counter-evidence if necessary, and choose to deny or accept and refund the customer. The Resolution Center is a tool that allows merchants and customers to resolve issues directly and avoid bank disputes or other escalations that will hurt merchant payment account health.
If the merchant does not respond within 7 days, or if the customer appeals the merchant's decision, specialists from Whop will step in to make a final decision.
Customers have up to 120 days from the date they made the purchase to open a case in the Resolution Center. After 120 days, they are no longer eligible to open a case.
Dispute Risk Score
Whop cannot support businesses that have a dispute rate > 2%. We offer tools to help Whop merchants proactively manage their account health, including a Dispute Risk Score, which is calculated based on several factors:
The number of customer disputes
Early dispute alerts (this is where we intercept a customer bank report before it formally becomes a dispute)
The number of Resolution Center cases opened by customers
The more dispute-related activity, the higher the score.
Reserves
Reserves are placed on your balance to protect your account when we detect elevated risk.
If disputes or chargebacks come in and you do not have enough money in your balance to cover those charges, your business can be at risk of penalties or complete shutdown. Reserves let us help you protect your account and ensure you never run into these situations.
Using your Dispute Risk score and a series of other internal risk flags, we can accurately predict the chargeback volume your are expected to face. We set reserves accordingly, and make sure you have a sufficient balance available to cover the expected volume of chargebacks.
Reserves are also applied as preventive measures in cases such as insufficient payment history, where establishing transaction consistency becomes crucial.
Reserves are held for a maximum 120 days, which is the window of time that a customer has to dispute a charge. That said, your Whop Payments account is evaluated constantly, and if your risk levels fall or we determine your account to be healthy, reserves will be released earlier than 120 days.
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 up to 120 days, which is the window of time that a customer can dispute a purchase.
TOS Violations: Violations of Whop's Terms of Service can lead to account suspension. Funds may be held for up to 120 days.
Negative Balances: If an account has a negative balance, payouts may be suspended until the balance is recovered.
TOS violations
Whop is committed to ensuring all content is compliant with our Terms of Service (TOS). Violations can include:
Adult content (NSFW)
Illegal activities
IP Infringement, Copyright, IPTV services
Credit or funding offers
Unethical behavior
Violating 3rd Party TOS
Extreme content (i.e. terrorism threats)
We use both automated models and live reviews 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.
Proactively Resolve Disputes: Encourage customers to use the Resolution Center and address disputes swiftly.
Monitor Thresholds: Regularly track metrics influencing your risk score to identify and address potential issues early.
Reduce Dispute Rates: Provide excellent customer service and implement clear policies to maintain low rates. Refund customers wherever possible -- refunds lower dispute rate, keep your customer base happy, and
Manage Reserves Proactively: Avoid escalated reserve levels by resolving customer concerns promptly and maintaining consistent account activity. Providing payment documentation may aid in reevaluation processes.
If your account is affected
If your account is suspended or placed on reserve, you will be notified via email and provided with information about the reason and next steps. You can always contact our support team for assistance.
