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10-13-2006, 09:40 AM #1Junior Guru
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What is a Pro-Rated refund and how is it issued?
Title pretty much states it all ... I'd like to be a bit more enlightened on the subject
Thanks
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10-13-2006, 09:42 AM #2Web Hosting Master
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You get refunded on the unused portion of your service.
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10-13-2006, 09:49 AM #3Web Hosting Master
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Say you charge $30 for one month of service. The customer uses 10 days of service, you are going to refund them 20 days of service. So $30/30 (charge/days in month) * 20 (unused days) = $20 refund.
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10-13-2006, 02:03 PM #4Junior Guru
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oh, simple. Do hosts generally issue those? Say a customer wants out 6 months into an annual contract.
It seems ethically right, but idk. What do you guys suggest?HostingChoice Web Hosting and Consulting Services
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10-13-2006, 02:04 PM #5Web Hosting Master
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Ethically yes but also what do you TOS say? Why does the customer want out?
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10-13-2006, 02:16 PM #6Junior Guru
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That was hypothetical, but I see exactly what you are saying.
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10-13-2006, 02:17 PM #7Junior Guru Wannabe
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If you have it explained cancellation terms in your TOS or agreement when they signed up, then follow what you promised at that point. If not, and the customer wants out because of a bad experience with your service, I would suggest making it as easy and problem free as possible - they are already dissatisfied, anything more will make their opinion of you twice as bad.
I've canceled services before with companies I had problems with, and some of them I'd honestly reccommend again in the right situation because of their customer service - other cases I've cancelled at no fault of the provider but would never reccommend them because of their poor service and bad attitude.
All that being said - something like this should be spelled out in your TOS. Most companies will offer pro-rated refunds in addition to any fees they would have had to pay if they had gotten the smaller account. For example, a 6 month plan has a $25 setup fee, while the 12 month has no setup fee - if they cancel after 6 months, offer them a prorated refund, minus the setup fee.
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10-13-2006, 07:21 PM #8Artificial Intelligence
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You should only offer refunds on yearly prepays if the client has a problem and it cannot be correct. Then offer a refund on the remaining balance and help them with the transition to the new provider even if you feel the problem was caused by them it keeps any bad feedback of your company from being spread about.
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