This post covers some methods to deal with chargebacks – when a member disputes their charge for membership.
In some cases, a chargeback is actually fraud, whether it is a stolen credit card or PayPal account login. What I’d like to talk about now is a misuse of chargebacks: when a member is grumpy or lying about payment fraud just to get their money back.
Refunds are an unavoidable part of your membership business. Even if you clearly state that you do not offer refunds for membership, there will be people who dispute a charge via their bank or PayPal. Read this post for more information about how to design your membership site’s refund policy.
Here’s how we process refunds in order to maintain good data in our membership reports.