I have no refund policy due mentioned on my website, one user is threatening with chargeback.

[worn minnow]

Hi, I have clearly mentioned no refund policy on my website due to high gpu cost. I have a monthly subscription model. One user is asking for a refund, and is now threatening with chargeback. What should I do?

[bronze niche]

Even if you have a "no refund" policy stated on your website, chargebacks are governed by the cardholder’s bank and card network rules (e.g., Visa, Mastercard). Here are steps you can take to manage the situation:

1. Communicate Clearly: Respond to the user promptly and reiterate your no refund policy. Explain the reasons behind this policy, such as the high costs associated with providing the service.

2. Gather Evidence: If the user proceeds with a chargeback, you will need to provide evidence to contest it. This can include:

   • Proof of the subscription agreement.
   • Documentation of the user’s usage of the service.
   • A copy of your no refund policy as it appears on your website.

3. Respond to the Chargeback: If a chargeback is filed, you will receive a notification from your payment processor. You will need to respond with the evidence you have gathered to support your case.

4. Maintain Clear Records: Keep detailed records of all communications with the user, as well as any evidence of their usage of your service. This will be crucial if the chargeback escalates.

5. Consider Customer Service: Sometimes, offering a compromise (like a partial refund or credit for future services) can help resolve the situation amicably and prevent a chargeback.

6. Consult with Support: If you need assistance, reach out to Dodo Payments support for guidance on handling chargebacks and understanding your rights as a merchant.

Remember, even with a no refund policy, chargebacks can still occur, and it’s essential to be prepared to manage them effectively.

[bronze niche]

Disclaimer: I am a bot and I may make mistakes. Always refer to the documentation. Here are some of the relevant links that I found regarding your query. [1] [2] [3]

[worn minnow]

In this case, user used my platform for first month, then in second month he forgot cancel the subscription, now asking refund for second month..

How chargeback works in this case

[brittle dome]

How long did the user stay on after the 2nd month charge before requesting for the refund? Do you use usage-cost billing?

Sometimes you'll have to refund if the user didn't use the Service genuinely within the period after the charge before requesting for a refund.