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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 use the following 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.

Don’t:

  • Bill any installments sooner than agreed with the cardholder.

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