Chargebacks Or Cancellations - What Is More Worrying To You?

[Xstr8guy]

Both are bad but only chargebacks will get you shut down.


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[gaybucks_chip]

Some people are just going to take the absolute cheapest option, grab all the content, and run. There's nothing you can do about those guys, so if they sign up and cancel immediately, it's not that big a deal to me.

Chargebacks I am MUCH more concerned about. Both because 1% isn't a lot, and because most of the time, those folks have had the service for 1,2 3 months and then charged back. I think a very large % of the time it's fraud, and AJ and I are actually working on setting up a system to get very aggressive with fighting chargebacks (and bad checks).

I suspect that a well-worded certified letter, possibly on the letterhead of a nearly-retired attorney whose name we "rent" for the purpose, detailing the threat of criminal action will probably get 30-40% of these people to pony up the cash for their "fraudulent" transaction, and help to deter them from pulling the same shit with other sites.

For the few that are legitimate chargebacks (stolen cards, IPs obviously coming from nowhere near the cardholders home), we'll certainly take a copy of a full police report describing the fraudulent charge to "call off the dogs" knowing that filing a false police report is a crime in itself.

Frankly, I'm just annoyed about these guys that know they can get away with the chargebacks because Epoch and CCBill don't do anything meaningful to fight them. As for the guys cancelling, there's nothing really wrong with that. IF they like what they see, they end up signing up again, and we've probably gotten as much out of them that way than if they'd done the trial-to-full conversion anyway.