Monica Eaton, CEO of Chargebacks911 and an expert in payments industry technology and regulation, was recently asked to share her thoughts on the FTC's “Click to Cancel” rule as part of a new feature for Her Agenda.
Her Agenda is an award-winning digital media platform dedicated to “bridging the gap between ambition and achievement for millennial women.” The site provides inspiration through the stories of real women who are succeeding in their industry while also highlighting the information and resources needed to achieve that success. Resources include the latest in events, scholarships, conferences, internships and job opportunities for young women to reach their full potential.
The way that negative-option sellers operate is changing. New requirements from the FTC will impose stricter expectations for merchants' cancellation practices. But, as Monica explains, this isn't necessarily a bad thing.
“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 in the piece.
Making cancellation processes simpler will help improve relations with customers. More than that, it may help retailers avoid costly chargebacks.
“If a customer files a chargeback with their bank because a merchant makes it difficult to cancel services, you don’t just lose that customer, but you also incur chargeback penalty fees, as well as spend more on administrative and chargeback management costs,” she said.
