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The Worst SaaS Cancellation Policy on the Internet

sitebuilderreport.com

21–30 of 48 posts

Re: The Worst SaaS Cancellation Policy on the Internet

#22
post #6

I've found with businesses like this (though not 1&1 specifically), the magic word is "chargeback". It helps you cut through the bullshit because if they get too high a percentage of chargebacks, their credit card processing fees go up (and they can even lose the ability to charge cards).

I know what you're saying but a chargeback is really for a charge that you believe is fraudulent/have no idea why it was made. That's certainly not the case here. So folks like 1&1 usually have proof that you willingly signed up for the charge. If that happens you can be blacklisted and other merchants suddenly won't accept your card. It then costs $99 to get off that list.

Re: The Worst SaaS Cancellation Policy on the Internet

#23
post #6

I've found with businesses like this (though not 1&1 specifically), the magic word is "chargeback". It helps you cut through the bullshit because if they get too high a percentage of chargebacks, their credit card processing fees go up (and they can even lose the ability to charge cards).

I know what you're saying but a chargeback is really for a charge that you believe is fraudulent/have no idea why it was made. That's certainly not the case here. So folks like 1&1 usually have proof that you willingly signed up for the charge. If that happens you can be blacklisted and other merchants suddenly won't accept your card. It then costs $99 to get off that list.

Believe it or not a chargeback doesn't have to be for things you consider fradulent. We see people all of the time chargeback for services provided. All you need to do is issue the chargeback. 99.99% of the time it will go through

Re: The Worst SaaS Cancellation Policy on the Internet

#24
There needs to be a general logo/sticker/proof seal. "You can cancel a subscription the same way you can buy a subscription" If you can sign up for something online and buy it within 3 - 5 steps you should be able to cancel it online with 3 - 5 steps. If you need to call or visit a human to sign up for a service then it's fair that you may be required to call or visit a human to cancel it. How many people would more confidently purchase/avoid purchasing if that was on the checkout/payment page?

Re: The Worst SaaS Cancellation Policy on the Internet

#25
post #23

Earlier quoted context omitted.

I know what you're saying but a chargeback is really for a charge that you believe is fraudulent/have no idea why it was made. That's certainly not the case here. So folks like 1&1 usually have proof that you willingly signed up for the charge. If that happens you can be blacklisted and other merchants suddenly won't accept your card. It then costs $99 to get off that list.

Believe it or not a chargeback doesn't have to be for things you consider fradulent. We see people all of the time chargeback for services provided. All you need to do is issue the chargeback. 99.99% of the time it will go through

I know it's abused like this as you say. The point is that for merchants for whom there's a lot of buyer remorse (dating sites etc) they enact clear steps to show you knew what you were doing and will then dispute those chargebacks (they have to or else they will get dropped)

Re: The Worst SaaS Cancellation Policy on the Internet

#26
post #23

Earlier quoted context omitted.

Believe it or not a chargeback doesn't have to be for things you consider fradulent. We see people all of the time chargeback for services provided. All you need to do is issue the chargeback. 99.99% of the time it will go through

I know it's abused like this as you say. The point is that for merchants for whom there's a lot of buyer remorse (dating sites etc) they enact clear steps to show you knew what you were doing and will then dispute those chargebacks (they have to or else they will get dropped)

Having been in the merchant system for a long while, there's really nothing the merchant can do to prove you knew what you were doing and agreed to the charges. As a consumer I can like it, as a merchant it really pisses me off sometimes

Re: The Worst SaaS Cancellation Policy on the Internet

#27
File an FTC complaint about them, and a BBB one, and send a complaint to Dun & Bradstreet while you are at it, and post something on ripoffreport if they are still around. Then change your credit card # ( get a new number / card )

Sounds like these guys are exploiting the same flaw in CC payments that a number of phone services, domain name registrars, buyer protection services, etc exploit which is that there is no way to 'pre-decline' a charge to your credit card. They will keep charging your card (regardless of your cancellation) and when you complain they will send the CC company a copy of your initial signup / agreement and won't include any follow up documentation. You will have to send your email as documentation as 'proof' month after month. Many people just give up and pay the the money. The local news station has a consumerist segment they run now and then, this sort of scam comes up frequently.

Clearly you are not alone: http://www.ripoffreport.com/reports/directory/1and1-internet

Re: The Worst SaaS Cancellation Policy on the Internet

#28
On all the products I've sold in SaaS form, we've made it a point to let people cancel easily. Sometimes I question if we made it too easy, but then I think to Wheaton's Rule, and also the fact I'm saving time not staffing a team of assholes to block cancelations.

I can imagine tons of possibilities to work to reduce churn, but this 1&1 stuff is nuts. I'm sure tons of people don't cancel because $9/month isn't worth their time right now to call.

Re: The Worst SaaS Cancellation Policy on the Internet

#29

File an FTC complaint about them, and a BBB one, and send a complaint to Dun & Bradstreet while you are at it, and post something on ripoffreport if they are still around. Then change your credit card # ( get a new number / card ) Sounds like these guys are exploiting the same flaw in CC payments that a number of phone services, domain name registrars, buyer protection services, etc exploit which is that there is no…

Actually, my business bank in the UK (Barclays) can apparently block card payments in advance. I know because it took an astonishing amount of work to stop HasOffers from billing me after my trial had ended and been cancelled.

Re: The Worst SaaS Cancellation Policy on the Internet

#30
post #5

I was scammed into adding on the website builder to my package. I was sitting at work and I received a call. I took it and a sales guy started trying to sell me on this. I explicitly asked him whether I would see any recurring charges if I said yes to this trial and then took no further action, and he assured me that was the case. I really just wanted him to shut up so I could go back to work. Imagine my surprise 4-6…

You were "scammed?" What? That story literally makes no sense.

How did the salesman get hold of your personal information and payment information to sign you up to this service?

Also how did you think a trial would incur no recurring charges after the trial expired? Particularly if you left it for 4-6 months? How long did you think the trial was?

Sorry but that post could not be more nonsensical if it tried. And the line "I really just wanted him to shut up so I could go back to work." just further adds to the confusion. So you signed up to a trial to get a salesmen to leave you alone then left it for 4-6 months, and then got upset when you got charged?

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