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.
- 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.
- Bill any installments sooner than agreed with the cardholder.