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  1. #1
    Join Date
    Jun 2002
    Location
    USA
    Posts
    977

    * Clients that ask for refund??

    Hey everyone.

    I was just wondoring, a client of mine asks for a refund because he signed up thinking that we support ms access db which we do not. (And there is nothing about MS DB on our features list). I am currently using 2checkout for my merchant account (which the customer was billed through). Our TOS does not state anything about any type of refund being given unless we do not provide what we have offered.

    Client was billed $15.00 yesterday for a hosting plan.
    I still have about 24 hours before I can refund the money without being charged a transaction fee from 2checkout.

    The only thing I was wondoring was if the client has a right to do a chargeback even though we do not offer any kind of money-back gaurantee right now. And if he is allowed to do a chargeback, is there any other way of getting by with this?

    Thanks in advance
    Orlando Magic--> 05-06 CHAMPS

  2. #2
    Why not just give his money back ? If he does a charge back it's gonna be more expensive for you and unless you have a signature you will lose on the chargeback.
    phantasyworkshosting.com

  3. #3
    it would be best if you did give them one in my opinion as they will otherwise kick up a fuss and would complain to forums like this one and give you a bad reputation, it takes ages to build up a rep but one little mistake can spoil it,

    It is an honest mistake he has made so i think you should as he hasnt used services unless he has been a customer for a while,

  4. #4
    Join Date
    Jun 2001
    Location
    Kalamazoo
    Posts
    33,412
    Just refund it and don't worry about it. Especially since it costs you nothing to do so at this point.
    There is no best host. There is only the host that's best for you.

  5. #5
    Join Date
    Dec 2001
    Location
    Los Angeles, CA
    Posts
    1,337
    For how many days does 2checkout not charge a fee for refunds?
    Ronny Fang
    Linux Problems Solved. | Built for the Hosting Industry
    Server Management. Node Management. Helpdesk Management.
    ( AcuNett, Est. 15 Years, RateLobby 5 Stars )

  6. #6
    Join Date
    Jun 2001
    Location
    Texas
    Posts
    1,249

    Refund him/her

    If the services were not delivered you do not have a right to keep his or her money. Do the right thing, save yourself a headache and refund his/her money.

    If you run an honest business, people will come to you. If not, then word will get around.

    Regards,
    Darrell Buckhaults
    ThePrimeHost LLC - Serving Websites Since 2001.
    Fully Managed VPS Hosting w/ Cpanel + WHM
    Fully Managed Dedicated Servers w/ Cpanel + WHM
    Reseller Hosting with End User Support

  7. #7
    For how many days does 2checkout not charge a fee for refunds?
    I was told 2 days by staff.
    http://www.sonichost.net
    Hosting Solutions That Won't Break Your Budget!

  8. #8
    Join Date
    Jan 2002
    Location
    Luxembourg
    Posts
    1,145
    Don't know it exactly, but it's definately more than 1 day. If I can remember correctly either two or five.
    Please correct me if I'm wrong

  9. #9
    Join Date
    Apr 2002
    Location
    Here?
    Posts
    2,560
    You should do a refund. The gentleman made an honest mistake. As far as your TOS, you can't deliver the goods, as you don't offer it. I see no reason why you wouldn't want to give him his money back.

  10. #10
    Join Date
    Jun 2002
    Location
    USA
    Posts
    977
    Thanks for the advice you guys. I guess it was an honest mistake. I just do not understand why some people do not look through the entire features page (to see if we offer what they need). I am just annoyed because although it takes 5 minutes to setup the account in Plesk and go through the refund process (2checkout) it is still 5 min=). The customer should have taken 5 minutes to look at our features or E-mail support about it. Luckily he found out that we do not offer MS DB's because after 2 days if I refund, I will still be charged the transaction fee This transaction fee after the refund is the only problem I have with refunds. (Don't want to loose money (for transaction) if I do not get profit because I was not at fault).

    Thanks for your suggestion everyone. I'll issue his refund=P
    Orlando Magic--> 05-06 CHAMPS

  11. #11
    Good choice! You shouldn't charge the customer if you didn't provide any services. No loss to you really and if you did not refund it, word would deffinately get around and you don't want that kind of reputation.

    -Robert
    Hosting, VDS, and Colocation Solutions
    by Digital Isles, Inc.
    http://www.digitalisles.com

  12. #12
    Join Date
    Apr 2002
    Location
    Here?
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    I agree with DigitalIsles! Five minutes of your time now (to process a refund) is worth much more than all the time you'll spend trying to recover a lost reputation!

    Good choice!

  13. #13
    Join Date
    Jun 2001
    Location
    Kalamazoo
    Posts
    33,412
    Glad you are refunding the money. It can only reflect well on you. As he is likely to remember your name and seek your services if he is ever in a position to need what you 'do' offer.
    There is no best host. There is only the host that's best for you.

  14. #14
    Join Date
    Jun 2002
    Location
    USA
    Posts
    977
    I was just wondoring what you guys think about the 'transaction fee' that 2checkout charges after 2 days. i.e. if a client bought a yearly (pro) plan for $200.00, it would be 45c + 5.25 percent. Then if the client asked for a refund after 2 days, I would be charged the transaction fee and be at a loss. What do you think about this?
    Orlando Magic--> 05-06 CHAMPS

  15. #15
    Join Date
    Nov 2000
    Location
    Dundee, UK
    Posts
    1,366
    You should put something in your terms and conditions about refunds. So you can refund them less the transaction charges.

  16. #16
    Join Date
    Mar 2001
    Location
    Downunder..
    Posts
    2,612
    Hmm wierd, this is basic sales training, but you can use various methods to try and keep the customer..

    Ask him why he needs msaccess db, explain to him the other options (database ones) he can use etc...

  17. #17
    Join Date
    Jun 2002
    Location
    USA
    Posts
    977
    Thanks Alan, I have added it=P
    Orlando Magic--> 05-06 CHAMPS

  18. #18
    Join Date
    Jun 2002
    Location
    USA
    Posts
    101
    Even after the 2 days we would still refund the money.

    With no signature or card impression, you have no defence.

    Chargbacks can run from $10 to $30 for the research fee depending on the issuing bank.

    So you would eventually be out $10.95 plus up to another $30
    and also have an angry customer telling everyone not to do business with you. (it's a very small world)

    $11 is a very small price to pay for your reputation.

  19. #19
    Join Date
    Dec 2000
    Posts
    1,280
    We had a customer who wanted ASP and I told him we only offer Apache-ASP and he said that's fine. He signed up, and after about 15 days he said he's chosen to go with a Windows host and would like a refund. I gave him the refund 5 minutes after I got his email without asking any questions or giving him hard time about it. He then thanked us and said he would recommend us if anyone he knows is looking for a Linux host.

    My point is, even if the customer will not do a charge back, you should still do whatever you can to help them out. Keep them happy. I'm sure you're all familiar with "the customer is always right". It's not worth the headache or the unhappy (x)customer to save a few dollars. I've heard so many horror stories where hosts have kept their customers domains because they decided to move, etc. It's just a sign of bad business practise and a bad loser.

    I have another example if you don't mind me telling it.. This is about a guy that owned a restaurant..

    One night a guy comes in and orders food and a lot of vine.. After he finishes his food he's had a little too much to drink and has no money to pay what he owns (about $50). The restaurant owner gets really pissed about this and takes the drunk guy outside and beats him up.. They end up in court and the restaurant owner gets to pay about $5,000 to the drunk man.. So you see, there can't come anything good out of you treating your customers or x-customers badly for a few dollars. You'll probably end up paying more (chargebacks) and damage your company reputation (for some, years of hard work).
    (SH)Saeed

  20. #20
    Join Date
    Mar 2001
    Location
    Downunder..
    Posts
    2,612
    Good boy Sarvi - the right thing to do

  21. #21
    Join Date
    Jun 2002
    Location
    USA
    Posts
    977
    Thanks again for this info. I agree with everything you all have said.
    Orlando Magic--> 05-06 CHAMPS

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