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Transparency

The formula is public.

PayCanary uses a deterministic scoring formula. Not AI, not machine learning, not a black box. The same math runs every time. You can reproduce it yourself.

We publish the formula because your trust matters more than our trade secrets.

PayCanary Risk Score Formula

Score = (Dispute Rate × 40) + (Refund Rate × 25) + (Volume Spike × 20) + (Keyword Flags × 15)

Score is capped at 100. All inputs are percentages except Keyword Flags (count).

40

Dispute Rate

25

Refund Rate

20

Volume Spike

15

Keyword Flags

Risk Thresholds

GREEN: Low Risk
Score 0–29
YELLOW: Moderate Risk
Score 30–59
RED: High Risk
Score 60–100

Factor weights explained.

Dispute Rate

Weight: 40%

Your monthly dispute rate as a percentage of transactions. This is the single most important factor. Stripe's published freeze threshold is 0.75%.

< 0.25%

Low

0.25–0.50%

Watch

0.50–0.75%

Elevated

> 0.75%

Critical

Refund Rate

Weight: 25%

Monthly refund rate as a percentage of volume. High refund rates signal product or expectation mismatches, a pattern Stripe monitors for customer dissatisfaction.

< 2%

Low

2–5%

Moderate

5–10%

Elevated

> 10%

Critical

Volume Spike

Weight: 20%

Percentage change in transaction volume over the last 30 days. Sudden increases trigger Stripe's fraud detection, even if the transactions are legitimate.

< 50%

Normal

50–200%

Moderate

200–500%

Elevated

> 500%

Critical

Keyword Flags

Weight: 15%

Count of high-risk terms in your business description or product names. Terms like "crypto", "gambling", "adult", "pharmacy" trigger automated Stripe reviews.

0

Clear

1

Low

2–3

Elevated

4+

Critical

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