nvstan

Some EFT's (memberships) customers that noticed that they haven't use their membership for few month are calling their credit card and disputing the transactions claiming that "they came to cancel it few month ago and its our fault that we never canceled it" even if they never came by or cancel it !!!
I always respond and explain that they never ask to cancel it which is the truth...so no cancellation form has been filled out and that's why we never cancelled it.
And the sad reality is that we are finding out that most credit card companies are siding with the credit card customer vs the business and most of the cases I am loosing the disputes.

Any advice as far as EFT's cancellation policies and procedures that can be helpful in situations like these ??

Steve Underhill

When a tanner becomes a member they should be given a letter that explains the cancellation policy and a cancellation form that must be signed by them and a member of the staff to cancel the membership. There should also be a document that describes how your staff handles tanners in these situations. When a credit card company disputes, provide those forms to them and explain that the tanner never followed procedure. Also if you require a debit card you will have less problems.

__________________
Stephen Underhill
Consultant
steve@smuconsulting.com

neubie

If you have proof the credit card companies side with you. We have forms they sign when they cancel and we print their client profile. Everything is documented.

nvstan

Trust me. We have a very detailed sign up form (when they join). They sign and initial it next to the cancellation policies and we explain to them our policies as well at that time. Same as our cancellation form - very detailed.
It is just a loophole that people find - if they call their credit card company and said that they "notified us regarding their intention to cancel" (which they never did) and we "forgot" to process this request then the credit card will side with them - refund the fund back and penalize me.
We talked to our merchant regarding the issue and it seems that Visa/MC have a very firm policies as far as siding with the customer as long as they "said" that they notified us regarding the cancellation then they will side with them right away (as long as they didn't use their membership during that time which in that case it will be rendering or services).
Thanks god not all members are doing that but when they do then it really frustrating as I noticed that even after submitting all the proper contracts, cancellation form etc, to Visa/MC - 99% of the time we lose the case.

kookyguy

This happens once in a while, when and if it does. I ban the person from the salon. I don't have time for this sort of nonsense. I'm too busy growing the business.

Don't waste time and energy fighting for a couple bucks when you could be making thousands.

beachbumz

We always get several every year. Most of the time the CC company always goes in favor of the cardholder. However, that customer is no longer allowed any services until full payment is made including all fees and the defaulted contract. A few months if it has not been resolved, we mail out or state's court form for the "Complaint for Money Owed" which is what is used if filing a complaint in court. We get about half of the people to pay their account just by receiving this form via certified mail.

DH

This is exactly what we do except we change the client to a CASH only status. They're no longer allowed to use any cards at all thus preventing them from our EFT program for life.

Also, we only get MAXIMUM 2 charge backs a year.

rbrooks

Visa/MC changed their re-occurring transactions chargeback rules a couple of years ago. Even though we have a signed contract, a copy of the cc imprint and the clients signature, we will usually lose the chargeback unless they have tanned at least once. If they are disputing Jan and Feb, and tanned once in Feb, we will win.
I have verified this with First Data, and World pay. Visa says is a small claims court matter to enforce the contract.

concept999

Exactly our experience, as well.

earthangels

If you have an extensive contract, then I would add another line in there that says something to the fact that they must come in and sign a cancellation form make them sign or initial that they received a copy of the cancellation form as their proof of cancellation.

Then, the your response to the CC company would be show them your contract and that their signature and initials are absent meaning they failed to cancel their subscription and ask the CC company to ask for the customers proof of cancellation.