What additional evidence can a recurring billing or service-based merchant provide to defend against chargebacks?

In addition to the actions described in What is a chargeback?, you can also provide the following evidence:

Evidence of the cardholder’s actions

• Signed contract that states the terms under which the cardholder could have canceled the service
• Evidence that the cardholder is using the goods or services
• Evidence that the cardholder canceled within the same month that you issued billing and provided partial services
• Evidence that the cardholder did not attempt to cancel the services
• Evidence that the cardholder cancelled on the same day as the transaction

Evidence of your actions

• Legally binding contract between you and the cardholder
• A previous transaction that the cardholder has not disputed
• Evidence that you issued a refund before the chargeback because the cardholder canceled the service
• Evidence that you bill the cardholder after you provide services
• Evidence that the transaction date was before the cancelation date

What can I do to help prevent chargebacks?

In addition to the best practices described in How can I avoid chargebacks?, we recommend you follow these best practices:

Do:

• Cancel recurring billing as soon as the cardholder notifies you that they want to cancel
• Make sure your billing and cancelation terms are clear in the recurring billing contract
• Bill the cardholder for the correct number of instalments and for the correct dollar amount

Don’t:

• Bill any instalments sooner than the date you agreed with the cardholder
• Bill the cardholder after they have cancelled their instalments or after their contract has ended

Tags: avoid chargebacks, cancel billing, recurring billing, service based, chargeback process, dispute, defend chargeback