Dealing With Chargebacks

[Quality1]

One of my SaaS businesses involves a recurring subscription payment. Sometimes people forget to cancel it when they don't want to renew and inadvertently get billed for the next month/term.

• If the customer reaches out to me requesting a refund, I grant it to them provided they haven't continued to use the service since the billing date.
• If the customer goes straight to my payment processor (or their bank) and disputes the charge, I fight it. We have a billing agreement in place, and 95% of the time it rules in my favor.

Getting chargebacks negatively affects my account and can lead to penalties, money getting frozen, etc., so it always upsets me when people don't reach out first before disputing charges. I feel like I owe them no courtesy and act to protect my business.

What do you all think of this policy?

 

[royserpa]

"Fuck the clients. Your job is to put meat on the table" -Wolf of Wall Street Guy lol

 

[FBM]

I have a site that uses subscription too, and they often regret the purchase and then claim “fraud” and that they have no idea where this purchase came from, via Stripe.

So I send every single piece of evidence I can. As I use Moonclerk it has lots of data you can send to stripe. I also make sure to explain the evidence as much as possible keeping it as detailed as possible.

So far I haven’t lost a single case.

Which payment processor are you using?

 

[BlackhaTTer78]

Do you make it easy for them to cancel and to contact you?

 

[BlackhaTTer78]

Can you elaborate on your billing agreement and how they side with you. I thought the CC issuing bank decides the chargeback. Who eats it in your case?

 

[ScribScribScrib]

One of my SaaS businesses involves a recurring subscription payment. Sometimes people forget to cancel it when they don't want to renew and inadvertently get billed for the next month/term.

• If the customer reaches out to me requesting a refund, I grant it to them provided they haven't continued to use the service since the billing date.
• If the customer goes straight to my payment processor (or their bank) and disputes the charge, I fight it. We have a billing agreement in place, and 95% of the time it rules in my favor.

Getting chargebacks negatively affects my account and can lead to penalties, money getting frozen, etc., so it always upsets me when people don't reach out first before disputing charges. I feel like I owe them no courtesy and act to protect my business.

What do you all think of this policy?

refund in both cases, trust me, you don't wanna get zucc'd by gaypal

 

[FBM]

Do you make it easy for them to cancel and to contact you?

Use the reply feature mate.

And no they get emails every month about pending payment which gives them access to cancel or change cc details etc.

Otherwise it makes it easier to do a charge back, right?

 

[FBM]

Can you elaborate on your billing agreement and how they side with you. I thought the CC issuing bank decides the chargeback. Who eats it in your case?

First take a look at Moonclerk.

And the cases are always “I don’t know where this came from” which is nonsense. In the terms and also in various places on my site before they sign up it says what the payment will look like in their account, as in the name they see in their account history.

Plus it shows they signed up so it’s not like we had access to their details unless they submit them to us. So I send the time stamped sign up form to Stripe as they ask for evidence (Moonclerk uses Stripes back end).

 

[FBM]

refund in both cases, trust me, you don't wanna get zucc'd by gaypal

Yeah PayPal is ass. They pretty much side with the customer every time. Dicks