If I want to offer a 30 day Money Back guarantee - how do I execute this with stripe so that I’m not LOSING money on people who cancel before 30 days?
Stripe charges a non-refundable processing fee. If I charge $50 and stripe takes $1.50, then someone wants a refund. I am sending them $50 and losing that $1.50. Not a big deal on a small scale but a huge problem if I scale to the level I hope to.
Anyone know a way to execute a money back guarantee without getting hit with this loss?
Following with interest.
I don’t know a way to do a free refund in Stripe, but I do occasionally have someone change their mind between deposit and work start, so if there’s a way to do that, I’d like to know it!
If there isn’t, consider 30 day refund minus Stripe’s processing fee.
That’s a good idea. Another option is a 30 day free trial that’s NOT advertised as a free trial but only plugged into Stripe’s checkout mechanism as a free trial. So NO charge is made until day 31, at which point the GUARANTEE is over. Don’t love that either though.
Also not sure there’s an automated mechanism for refunds vs doing each one manually (ideally I won’t live in a world where I need to do so many that manually is a burden but you never know)
I don’t think I’d want to automate refunds. It’s OK if there’s a little friction there for someone who tries for 30 days and then wants their money back. Having them email you is OK.
If you really think you’re have that many refund requests, I think you should absolutely just bill it as a 30 day free trial.
Hi, I understand the need and want for this. But perhaps a way around it, so that you don’t even have to do refunds, is a 7 day free trial or complimentary subscription (the latter is so they don’t have to enter in payment info, it just bumps them back down to free, the former charges them after 7 days). This way people would know what they’re getting into without either of you losing out? Just an idea.
Appreciate the response, a free trial is not really the direction I want to go, but I want is to capture the credit card number right off the hop.
Ah, I understand. I may not be the best person to help with this, but I hope you find a solution soon.
A free trial does capture the credit card and will auto-bill it when the trial ends.
If you’re worried about there being a lot of people who try your service and don’t like it (requiring refunds, which you’re promising for 30 days), I think the free trial route makes good sense, although it does mean you don’t get any payment for the free trial. If you think that refunds are going to be super rare anyway but it’s important to offer them, then maybe just eat the Stripe fee for those rare cases. Or offer a full refund minus the processing fee.