Refunds.. What to expect?
Switched from a one-time payment model to subscriptions three months ago. I'm curious if I'll eventually be flooded with 'I had no idea I was being charged' refund requests. Where the user mainly asks for multiple months refunded. What has been your experience with such refund requests? How often do you get them? Do you process them all or just refund the previous month only?
My platform is an educational, content heavy model. Not so much a SaaS.
Great question. I was pretty concerned about this as well with my product. It's a website builder so what if someone built a site and then just copied it somewhere else, cancelled and got a refund?
As it turned out even when advertising a 30 day money-back guarantee very few people even make use of that. I think that for the large part, people are actually honest and not trying to abuse the system.
Your situation might be different because you're selling more to consumers but I'd say don't worry too much about it until it actually becomes a problem. One thing to note would be to be more generous with refunds to avoid chargebacks. Even if they wouldn't be legitimate it might still turn into a headache and an overall bigger loss for you.
So start with giving people the benefit of the doubt and make stricter rules when necessary.
Thanks Felixg. Appreciate the advice!
This comment was deleted 4 years ago