Hello,

We have a client who just signed up for a hosting account with us and decided to send out a bunch of spam last night. Our tech team immediately closed the account, but now we are left with a tough question on our hands:

The client paid via Visa. We charged them a setup fee and for their first month of hosting and the transaction went through fine. Now we are unsure about what to do: refund their money or wait to see of they do a chargeback. We obviously do not want the hassle of dealing with a chargeback and the damage that does to our merchant accounts but we also do not want to refund their money...

This is where I need your advice:

What should I do?

Refund

-or-

Wait and see if the client does a chargeback?

Thanks for your help!

Nason :)

In our TOS we do not tolerate spammers, so they would not be entitled to a refund.

A chargeback we would dispute since the client violated our TOS.

alohahosts is absolutely correct. Of course unless you didn't have a field on your order form specifying for them to agree to the TOS. Then things can be disputed a bit.

Definately NO refund. Unless of course your terms of service say you have a moneyback guarentee.

Jared C.
____________
Host-Grid.com

Nason,

If it's not alot of money and you don't want the hassle of a chargeback I suggest a refund. Yes they got away with spam, but a chargeback without a signature by them almost always results in you losing money and being marked for death by card companies.

Sincerely,

-Matt

If they are a good spammer you know that Credit Card they used is not theirs and they stole it from someone.

When I get these, I refund the $ right way, esp. if the batch has not closed out for the day.

I would have to say that a high percentage it is a stolen card and you don't have their signature and would not want to pay a chargeback fee.

Matt is right.

A charge back without a signature will almost always go the card holder's way.

I personally woudln't risk a chargeback and the $20-$35 fee that goes with it.

phone visa authorization center, verify all information, if it matches, verify customer contact information.

If that matches, call the customer, verify it was them, if so, then grab logs of the event, complaints, etc. and save them somewhere, also at that point, charge any extra clean up fee's you may have.

If a dispute comes along, you'll have your evidence, and hopefully win, if not, you'll have yuor cash. If the info doesen't match, when you call the cardholder, inform them their cards been stolen (aka if you get some guy going "what company did ya'll say you're from again? never hurd of ya!") and tell them you're processing a refund immediatly as it was a stolen card.

Thats just my $0.02, but it's served me well thus far.

Thanks everyone for your advice! You have made my life a whole lot easier!

This is why these forums are great....people helping people....

Thanks again!

Nason