What can a recurring billing or service-based merchant do to avoid chargebacks?

What can a recurring billing or service-based merchant do to avoid chargebacks?

In addition to the best practices described in How can I avoid chargebacks?, recurring billing or service-based merchants should follow these additional best practices.

Do:

  • Cancel the recurring billing as soon as the cardholder notifies you of their wish to cancel.
  • Make sure billing and cancellation terms are clear in the recurring billing contract.
  • Make sure you bill the cardholder for the correct number of installments for the correct amount according to the payment schedule.
  • Offer the cardholder the option to cancel, if your internal policies allow.

Do not:

  • Bill any installments sooner than agreed with the cardholder.

Modified on: Thu, 8 Nov, 2018 at 9:10 AM