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Stripe First Week Setup

You just got approved by Stripe. Don't start processing live transactions until you complete this checklist. These 7 tasks prevent 80% of problems new Stripe merchants face.

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Why This Matters​

Common first-week mistakes that cost thousands:

  • Wrong billing descriptor → 30% higher chargebacks for 30 days (can't change faster)
  • No fraud rules enabled → First fraud attack costs $5K-$20K
  • No dispute alerts → Miss 40% of preventable chargebacks
  • Wrong tax settings → Compliance issues months later
  • No webhooks → Can't detect failed payments

This checklist prevents these. Budget 8-12 hours total over 7 days.

Day 1: Critical Configuration (2 hours)​

Task 1: Set Your Billing Descriptor (30 min)​

Where: Stripe Dashboard → Settings → Public Details → Statement Descriptor

What to set:

  • Statement descriptor: What appears on customer's card statement (22 characters max)
  • Shortened descriptor: Mobile/condensed version (10 characters)

Best practices:

  • Use your recognizable business name
  • Include phone number if space allows
  • Avoid: Generic terms, abbreviations customers won't recognize
  • Test: Would your mother recognize this charge?

Example:

  • Bad: "WEBSERV*PROD"
  • Good: "YOURSTORE.COM"
  • Better: "YOURSTORE 555-0123"

Why it matters: Wrong descriptor causes 20-30% of "I don't recognize this charge" disputes. Once set, takes 30 days to change.

Task 2: Configure Basic Fraud Settings (30 min)​

Where: Dashboard → Radar → Rules

Enable these Day 1:

  1. Block payments if ZIP/postal code fails (if selling to US only)
  2. Block payments if CVC check fails (card security code)
  3. 3D Secure on high-risk (Stripe enables automatically, verify it's on)

Stripe Radar (free tier) is already enabled. Just verify default rules are active.

Don't: Get aggressive with rules on Day 1. Start conservative, tighten after you see patterns.

Why it matters: Zero fraud rules = first fraud attack drains inventory.

Task 3: Set Up Refund Policy (15 min)​

Where: Your website + Stripe metadata

Do this:

  1. Write clear refund policy on your website
  2. Link to policy from checkout
  3. Add policy URL to Stripe metadata (custom field)

Why it matters: Clear refund policy shown at checkout reduces "not as described" disputes by 15-20%.

Task 4: Test Mode Transaction (45 min)​

Before going live, test:

Use Stripe test cards:

  • Success: 4242 4242 4242 4242
  • Decline: 4000 0000 0000 0002
  • Fraud: 4100 0000 0000 0019

Test scenarios:

  1. Successful payment → Verify confirmation email
  2. Declined payment → Verify error message is clear
  3. Refund → Process test refund
  4. Check statement descriptor displays correctly

Why it matters: Bugs in production cost real money and look unprofessional.

Day 2: Dispute Prevention (2 hours)​

Task 5: Enable Dispute Alerts (RDR) (30 min)​

Where: Dashboard → Settings → Dispute Settings

Turn on:

  • Automatic refund for RDR alerts (Visa's Rapid Dispute Resolution)
  • Set threshold: Refund disputes under $100 automatically

Cost: Included free with Stripe

Why it matters: RDR deflects 20-40% of Visa disputes before they become chargebacks. This alone saves $300-$1,000/month at $500K volume.

Task 6: Configure Email Receipts (30 min)​

Where: Dashboard → Settings → Emails

Enable:

  • Successful payment receipts
  • Refund confirmations
  • Failed payment notifications (if recurring billing)

Customize:

  • Add your logo
  • Include support email
  • Add refund policy link

Why it matters: Customers who receive clear receipts dispute 25% less often.

Task 7: Set Up Webhook Endpoints (1 hour)​

Where: Dashboard → Developers → Webhooks

Critical webhooks:

  • payment_intent.succeeded - Track successful payments
  • payment_intent.payment_failed - Handle failures
  • charge.dispute.created - Alert on chargebacks
  • charge.refund.updated - Track refunds

Why it matters: Without webhooks, you can't automate fulfillment, detect failed subscriptions, or get real-time dispute alerts.

Ask your dev: "Can you set up Stripe webhooks for these 4 events?"

Day 3: Operational Setup (1.5 hours)​

Task 8: Configure Payout Schedule (15 min)​

Where: Dashboard → Balance → Payout Schedule

Options:

  • Daily (recommended for most)
  • Weekly
  • Monthly
  • Manual

Choose: Daily for regular cash flow. Weekly if you want to batch.

Why it matters: Daily gives you cash 2x per week instead of 1x. Better cash flow management.

Task 9: Set Up Reconciliation (30 min)​

Where: Dashboard → Reports

Download:

  • Last week's transactions (even if $0)
  • Practice reconciliation process
  • Understand report format

Set reminder: Weekly reconciliation every Monday

Why it matters: Finding $1K discrepancy in Month 1 is easy. Finding it in Month 6 is painful.

Task 10: Connect Accounting Software (45 min)​

Where: Dashboard → Apps

If using QuickBooks/Xero:

  • Install Stripe integration
  • Configure account mapping
  • Test sync

If not using accounting software:

  • Export CSV weekly
  • Import to your system

Why it matters: Manual reconciliation scales poorly. Automate from Day 1.

Day 4: Compliance Basics (1 hour)​

Task 11: Review Terms of Service (30 min)​

Where: Dashboard → Settings → Business Settings

Verify:

  • Business name is correct
  • Support email works
  • Refund policy uploaded
  • Prohibited items compliance

Check Stripe's restricted business list: Ensure your products aren't prohibited.

Why it matters: Violating TOS = account termination without warning.

Task 12: Set Up Tax Collection (30 min - if applicable)​

Where: Dashboard → Settings → Tax

If selling in multiple states:

  • Enable Stripe Tax ($0.50 per transaction with tax)
  • Or integrate TaxJar/Avalara

If single state:

  • Configure tax rate manually

Why it matters: Tax compliance violations discovered months later are expensive.

Day 5-7: Testing and Monitoring (3 hours)​

Task 13: Process First Live Transactions (Day 5)​

First 10 live transactions:

  • Monitor for declines (should be under 15%)
  • Check descriptor displays correctly
  • Verify receipts send automatically
  • Test refund process with friend/test customer

Red flags:

  • 20% decline rate (rules too aggressive or pricing issue)

  • Customers confused by descriptor
  • Emails not sending

Task 14: Set Up Monitoring Dashboard (Day 6, 1 hour)​

Create spreadsheet tracking:

  • Daily volume
  • Decline rate (declined / attempted)
  • Fraud rate (disputed as fraud / volume)
  • Refund rate

Set alerts:

  • Decline rate >20%: Investigate rules
  • Fraud rate >0.5%: Tighten controls
  • Refund rate >5%: Product/service issue

Why it matters: You need baseline data to know what's normal for YOUR business.

Task 15: Schedule Regular Reviews (Day 7, 30 min)​

Set calendar reminders:

  • Daily (first 2 weeks): Check dispute notifications, review fraud flags
  • Weekly: Reconciliation, review metrics
  • Monthly: Full cost analysis, optimize

Create checklist:

  • Week 1: Daily monitoring
  • Week 2-4: Every 2-3 days
  • Month 2+: Weekly reviews

Why it matters: Catching problems in Week 1 vs Month 3 saves thousands.

First Week Checklist Summary​

Pre-Launch (Do Before First Transaction)​

□ Set billing descriptor (Day 1)
□ Enable basic fraud rules (Day 1)
□ Add refund policy to website (Day 1)
□ Test with test cards (Day 1)
□ Enable RDR dispute alerts (Day 2)
□ Configure email receipts (Day 2)
□ Set up webhook endpoints (Day 2)
□ Configure payout schedule (Day 3)
□ Set up reconciliation process (Day 3)
□ Connect accounting software (Day 3)
□ Review TOS compliance (Day 4)
□ Set up tax collection (Day 4)

Post-Launch (After First Transactions)​

□ Monitor first 10 transactions (Day 5)
□ Create monitoring dashboard (Day 6)
□ Schedule regular reviews (Day 7)
□ Week 2: Review first week metrics
□ Week 3: Adjust fraud rules if needed
□ Week 4: Optimize based on data

Common First-Week Mistakes​

Mistake 1: Wrong Descriptor​

Symptom: 5-10 "I don't recognize this" disputes in first month

Cost: $150 in fees + $500 in lost products + 30 days to fix

Prevention: Test descriptor with real customers before going live

Mistake 2: No Fraud Rules​

Symptom: $5K in fraud orders in first week

Cost: $5K in product + shipping, CB fees later

Prevention: Enable Stripe Radar defaults on Day 1

Mistake 3: Missing RDR Alerts​

Symptom: 10 chargebacks that could have been prevented

Cost: $150 in fees + ~$500 in product

Prevention: Enable RDR on Day 2

Mistake 4: No Webhooks​

Symptom: Can't track payments automatically, manual fulfillment

Cost: 5-10 hours/week manual work

Prevention: Set up webhooks Day 2

Mistake 5: No Baseline Metrics​

Symptom: Don't know if 1% decline rate is good or bad

Cost: Opportunity cost of not optimizing

Prevention: Start tracking from Day 1

Test to Run​

Week 1 health check (end of first week):

Metrics to check:

  1. Authorization rate: Should be over 85%
    • If under 80%: Fraud rules too aggressive or technical issue
  2. Chargeback notifications: Should be 0-2 in first week
    • If >3: Descriptor issue or fraud
  3. Decline reasons: Check dashboard
    • Most common should be "insufficient funds" (normal)
    • If "fraud" is #1: Rules too tight
  4. Refund rate: Should be under 5%
    • If over 10%: Product/service issue
  5. Webhook delivery: 100% success rate
    • If failures: Fix integration immediately

Success criteria: 85%+ auth rate, 0-2 disputes, refunds under 5%, webhooks working.

Scale Callouts​

First $10K processed:

  • Monitor daily (not kidding)
  • Every transaction matters
  • Fix issues immediately

First $100K processed:

  • Monitor every 2-3 days
  • Patterns emerge
  • Adjust fraud rules based on data

First $500K processed:

  • Weekly monitoring sufficient
  • Baseline established
  • Focus on optimization

Beyond $1M:

Where This Breaks​

  1. High-volume launch: If you're launching with $100K+ in first week, compress this timeline to 2-3 days. You need everything set up BEFORE volume hits.

  2. Marketplace/platform: Multi-vendor setup requires Stripe Connect. This checklist doesn't cover that (see Stripe Connect docs).

  3. International from Day 1: Add multi-currency setup, regional payment methods. This is US/cards-only checklist.

  4. Card-present: Need Stripe Terminal setup (hardware, readers, SDK). Different checklist.

  5. Existing business migrating: Token migration, customer communication needed. See Processor Switch Checklist.

Next Steps​

Completed first week?

  1. Review Operations Checklist for ongoing tasks
  2. Read Auth Optimization to improve approval rates
  3. Plan 3DS setup if fraud >0.5%

Need help with specific tasks?

  1. Stripe Documentation - Official docs
  2. Stripe Support - Email support
  3. Payment Ecosystem - Understanding how Stripe fits

Ready for ongoing operations?

  1. Operations Checklist - Daily/weekly/monthly tasks
  2. Processor Management - Working with Stripe
  3. Chargeback Prevention - Reducing disputes from Day 1

See Also​