What factors are contributing to the increased chargeback rate for Kushki's recurring billing service this quarter?

Introduction

The increased chargeback rate for Kushki's recurring billing service this quarter is a critical issue that demands immediate attention. As we delve into this problem, we'll employ a systematic approach to identify, validate, and address the root cause while considering both short-term fixes and long-term strategic implications.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be a seasonal component. Has this increase coincided with any particular time of year or event?

Why it matters: Seasonal patterns could indicate external factors rather than internal issues. Expected answer: No clear seasonal pattern identified. Impact on approach: If seasonal, we'd focus on anticipating and managing cyclical trends.

• Considering user segments, I'm wondering if this is widespread or concentrated. Are we seeing the increase across all customer types or is it more pronounced in specific segments?

Why it matters: Segmentation could reveal targeted issues or vulnerabilities in certain user groups. Expected answer: Higher increase in SMB segment compared to enterprise customers. Impact on approach: If segmented, we'd tailor solutions to the most affected user groups.

• Thinking about recent changes, have there been any significant updates to the recurring billing system or related processes in the last quarter?

Why it matters: Recent changes could be directly linked to the increased chargeback rate. Expected answer: A new payment gateway was integrated last month. Impact on approach: If recent changes are involved, we'd focus on rollback or optimization of those specific updates.

• Considering data integrity, has there been any change in how chargebacks are tracked or reported?

Why it matters: Ensures we're comparing apples to apples and not facing a data anomaly. Expected answer: No changes in tracking or reporting methods. Impact on approach: If data inconsistencies exist, we'd need to address those before diving into other potential causes.