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Dealing with unreasonable refund requests

3 pointsby eswover 10 years ago
What's an appropriate response to a customer who requests a refund for a year of hosting service because they 'meant to cancel'?

8 comments

jasonkesterover 10 years ago
I run in to this from time to time with S3stat. We have real server expenses processing people&#x27;s reports, so there is in fact a genuine loss to the business if we refund a customer who &quot;forgot to cancel&quot;.<p>Still, I do it every time. For as far back as they want to go. Even if that&#x27;s a year. Even if it costs us a hundred bucks worth of AWS expenses.<p>Why? Because I&#x27;m not in the business of taking money from people who don&#x27;t want to give it to me. Sure, it costs a few hundred dollars every now and then but <i>a few hundred dollars is not a lot of money for a business</i>. The biggest expense in the whole process is my time and attention spent dealing with the situation.<p>Given that, the quickest and cheapest route out is to open up the Stripe console, click the Refund button a bunch of times, cancel the guy&#x27;s subscription, then write him a nice email telling him so.
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CyberFonicover 10 years ago
Without more information it is hard to suggest anything.<p>If your hosting service is like most others out there ($100-$300 p.a) then it might far less aggravation to simply cancel them and refund the year&#x27;s pre-paid amount than to waste time bickering.<p>Unreasonable people tend to start out being difficult and then dig in. Have you seen: <a href="http://www.boston.com/food-dining/restaurants/2014/12/09/harvard-business-school-professor-goes-war-over-worth-chinese-food/KfMaEhab6uUY1COCnTbrXP/story.html" rel="nofollow">http:&#x2F;&#x2F;www.boston.com&#x2F;food-dining&#x2F;restaurants&#x2F;2014&#x2F;12&#x2F;09&#x2F;har...</a>
davismwflover 10 years ago
Are they claiming the service was unavailable, unreliable, poor etc. Or just saying, hey we forgot so we&#x27;d like to have our money back?<p>Did they use the service for 12 months? To me it is two different things if they had the account but hadn&#x27;t used it, I might be more inclined to say refund 3 months just to keep them reasonably happy and make it easy on myself. If they used the account all the way up to the end, then I would likely not be very accommodating on any refund, unless you messed up somehow which it doesn&#x27;t sound like.<p>Overall, they are responsible for canceling timely which is not your problem.<p>Would you get your money back if you called up the cable company and said, hey sorry I didn&#x27;t watch TV for the last 12 months, so I&#x27;d like my money back please. It is the same thing they are asking you to do.
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salukiover 10 years ago
Check what card they were using . . . determine how far back they could request chargebacks and refund to that point or one billing cycle farther back . . . most services will only refund back one billing cycle so I agree this request is extreme . . . Good luck in 2015.
jhwhiteover 10 years ago
Did they pay for a year up front? I feel more information is needed.<p>Is this a renewal and they pay for a year at a time? If so how long past the renewal are they?<p>Or has a year gone by and they owe for the past year?
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LukeFitzpatrickover 10 years ago
Yeah, I&#x27;d just refund it like jasonkester said. It&#x27;s not worth the hassle and besides, that customer is likely to complain about your service if you don&#x27;t refund it. The chances are, they are probably really strapped for cash and are looking for ways to cut down on expenses suddenly. Or they are just (---: &#x27;s
rancurover 10 years ago
I would look at how much they actually cost you. Cost you. If they didn&#x27;t cost much of anything refund them up to the cost to you to do business, including overhead
cgtyoderover 10 years ago
What are your original TOS for refunds?<p>Maybe offer them a month&#x27;s refund to get rid of them. Hard to say when dealing with extreme cases.