3 Things You Must Know When Selling on Whop

When selling on Whop, there are a few things you should keep in mind. Whop is a premier marketplace platform which makes selling digital goods - things such as access to discord groups, ticket reselling, and sports picks, easier than ever. But you already knew that... here are 3 key tips for scaling on Whop.com:

1.  Make sure you're not on Stripe's restricted business list

It's no secret Stripe has a comprehensive list of prohibited businesses (which you can check out here). A few noteworthy callouts:

Gambling
1. Games of chance including gambling, internet gambling, sweepstakes and contests, fantasy sports leagues with for a monetary or material prize
2. Sports forecasting or odds making with a monetary or material prize
3. Lotteries
4. Bidding fee auctions

Adult content and services
1. Pornography and other mature audience content (including literature, imagery and other media) depicting nudity or explicit sexual acts
2. Adult services including prostitution, escorts, pay-per view, sexual massages, and adult live chat features
3. Adult video stores
4. Gentleman's clubs, topless bars, and strip clubs
5. Online dating services

If you're selling sports signals, that could be considered "sports forecasting." Stripe will shut down you on - so you'll want to use a processor such as Braintree. For merchants in even higher risk categories, please reach out to us to be placed with a high risk payments provider.

If in doubt if you're in violation of TOS, please reach out to us for consultation, or to Stripe directly. The last thing you want is to hit scale and then get shut down.

2. Keep your dispute rate under control

Subscription digital products are notorious for having high dispute rates. It doesn't matter whether you're a billion dollar company like Netflix, or selling sports trading signals - you will be prone to chargebacks. When dealing with the general consumer, even with the best customer support, clearest checkout flow, bullet proof TOS, and liberal refund policy - you will face disputes. It's just much easier to call the bank or hit the dispute button on Cashapp than it is contact the merchant (as the consumer is supposed to do) to ask for a refund.

A dispute rate of even .5% can lead to troubles on Stripe, so it's best to target a rate of .3% or lower. Visa will hit you with early warnings at .65% and you'll start to receive emails from Stripe at around .5% typically.

You can instead use a tool like Chargeblast.io to refund transactions whenever a customer initiates a dispute. This preserves your dispute rate and keeps you in good standing with your payment processor.

3. Leverage Whop's Resolution Center & Dispute Fighter

One reason Whop is our preferred platform for digital product reselling (see how Whop matches up), is Whop ships with some of the most innovative dispute reduction features on the market.

With Whop, you can push your customers to resolve disputes through Whop's resolution center (as opposed to your customer going to the banks). If your customers instead go through Whop to get their dispute settled, the transaction will not count towards your dispute rate - VISA/Mastercard will never know about it.

It's much preferred to handle these potential disputes in house with Whop, and simply refund them, than have them turn into official disputes with the card networks.

Additionally, Whop has a "dispute fighter" feature - one of their first features that set them apart from other tools. Their dispute fighter tool allows you to win disputes on autopilot, if the dispute turns into an official chargeback. It's best to not let the dispute get to this point, but if does you have some peace of mind knowing you have some chance to recoup the lost revenue without having to do additional work.