Chargebacks911 CEO Monica Eaton, a world-leading expert in the payments and finance space, was recently asked to share her thoughts in a new feature for Digital Commerce 360.
Digital Commerce 360 is a leading media and research organization that delivers objective news and competitive data across e-retailing, B2B eCommerce, and digital healthcare. With over 20 years of experience in eCommerce reporting, their award-winning editorial and research staff are experts in digital strategies.
The FTC is considering a new rule that would apply to all retailers with subscriptions, memberships, and automatic renewals. But, as Monica posits, this may actually be a good thing in the long run.
“While no retailer wants to see their customers cancel services, having a tedious cancellation process could push customers to file a chargeback, or file a complaint with entities like the FTC — even if the retailer is fully compliant and following all payment processing guidelines that govern their merchant account,” she explains.
Monica goes on to explain that, when customers find that canceling a subscription is too complex, or there are too many roadblocks, they tend to turn to chargebacks. “Too many chargeback requests can lead to a retailer losing processing capabilities,“ she says.