What's causing the sudden increase in chargebacks for recurring payments processed through Adyen's subscription management tool?

Introduction

The sudden increase in chargebacks for recurring payments processed through Adyen's subscription management tool is a critical issue that demands immediate attention. This problem not only affects our revenue but also impacts customer trust and satisfaction. I'll approach this analysis systematically, focusing on identifying the root cause, validating hypotheses, and developing both short-term and long-term solutions.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a recent change in the system. Has there been any recent update to the subscription management tool or related systems?

Why it matters: Recent changes often correlate with sudden metric shifts. Expected answer: Yes, there was a recent update. Impact on approach: If yes, we'll focus on the changes made; if no, we'll look at external factors.

• Considering user segments, I'm wondering if this is affecting all customers equally. Are we seeing this increase across all user segments or is it concentrated in specific groups?

Why it matters: Helps narrow down potential causes and affected areas. Expected answer: The increase is more pronounced in certain segments. Impact on approach: If segmented, we'll investigate those specific user groups; if universal, we'll look at system-wide issues.

• Thinking about the chargeback process, I'm curious about the reasons being cited. What are the most common reasons given for these chargebacks?

Why it matters: Different reasons point to different root causes. Expected answer: A mix of "unauthorized transaction" and "product not received" claims. Impact on approach: We'll focus our investigation on authentication processes or delivery systems accordingly.

• Considering potential external factors, I'm wondering about any recent changes in payment regulations. Have there been any new financial regulations or changes in card network policies that might affect our processes?

Why it matters: External regulatory changes can significantly impact payment processes. Expected answer: No major regulatory changes recently. Impact on approach: If yes, we'll need to ensure compliance; if no, we'll focus more on internal factors.