In your experiences, have you ever had a problem where someone would sign up for a promotion, such as a Free domain name (or something of the sort) under the condition that they sign up for a year, and the person ended up doing a chargeback after taking your gift/promotion? Could you defend yourself against such a chargeback (provided that you offered all of the services that you said you would)?
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When you're operating some gift or other promotional activities to lure your business you should frame out a business "conditions" to those customers that sign up to avail those service or gift to avoid any chargeback’s.
Yes it would be best to clearly say this in your TOS even make it Bold or in a different colour and make sure you prompt the client to read before signing up that way there no if's and buts, But yea i understand what you mean.
I do not have first hand experience with what you are worried about, but I think your defense against such a chargeback would be minimal to say the least. I would not be too worried however, as I would not expect a large number of chargeacks or any at all. You could also think of registering the domain in your name and placing the hostee as a technical contact on it.
i am from netherlands and what they do in here is :
if there is a deliverable promotion that they will send by post, they are waiting till the and of money back guarantee period. and since you are not alowed to request your money back they are sending the promotion to you.
if there is an undeliverable promotion and they have to start in advance, as domain names, they register on their names and after the condition meets, they change the administrator name and mail address to you.
but in both cases i think you should clearify exactly these conditions.