In addition to the guidelines provided here, there are several things businesses that rely on recurring billing can do to fight back against chargebacks.
Gather as many of the below items as possible:
- A copy of the contract clearly showing the contract and cancellation policy and proof that the customer did not in fact cancel their service according to these terms
- Proof that the customer is making use of the product or service
- If the customer cancelled, proof that partial services were rendered for the month of the cancellation
- The transaction occurred before the cancellation, even if only by a matter of minutes
- Any evidence of a previously uncontested transaction between you and customer
- If the cardholder cancelled their service according to the terms of your contract, provide proof that you had already issued a refund prior to the chargeback being initiated
- A written statement explaining your position. You can include information such as the fact that you bill in arrears and this charge was for services already rendered or that the cardholder cancelled at a point in the billing cycle where a full refund was not possible per your contract terms.
Above all, don't worry! We will be there to guide you every step of the way. You can always call us at 408-295-8360 if you have any questions.