How if a buyer asked for refund with no reason?

TheCompWiz · Jul 6, 2016

What you will do if a buyer is also a reseller and buys hosting services from you and then asks for refund with no reason at all? Should you refund your client?

LJSHost · Jul 6, 2016

If your customer is entitled to a refund under your terms of service, yes you should refund them.

Even if they are not entitled to a refund it's always best to refund them for the last billing period and be done with it, they will just do a PayPal charge back on you or something similar anyway which will create more work and problems for you. I've dealt with customers like this before and its always better to say 'here is your money, goodbye'.

Luxin Host · Jul 6, 2016

TheCompWiz said:
What you will do if a buyer is also a reseller and buys hosting services from you and then asks for refund with no reason at all? Should you refund your client?

Hi @TheCompWiz

We usually refund the customer within a 30 day period as long as no illegal activity was taken on the account.
We rather keep the customer happy and work with them rather than let them leave us frustrated and upset.

TheCompWiz · Jul 6, 2016

LJSHost said:
If your customer is entitled to a refund under your terms of service, yes you should refund them.

Even if they are not entitled to a refund it's always best to refund them for the last billing period and be done with it, they will just do a PayPal charge back on you or something similar anyway which will create more work and problems for you. I've dealt with customers like this before and its always better to say 'here is your money, goodbye'.

I got refunds some times when I used domain and hosting services. I feel they are caring their customers and I can come back to use their services again.

Luxin Host said:
Hi @TheCompWiz

We usually refund the customer within a 30 day period as long as no illegal activity was taken on the account.
We rather keep the customer happy and work with them rather than let them leave us frustrated and upset.

A 30 day period is too much for customers?

For some hosting providers I saw they are only offering 3 day period for money back guarantee.

LJSHost · Jul 6, 2016

30 day is good honeymoon period which most providers offer and provides confidence for customers to sign up with you. It's the same as the first month free if they want to cancel.
3 Day seems a little low, but every host is free to do as they please.

Mihai B. · Jul 11, 2016

rasanjanad said:
Our Refund policy is 7 days. In 7 Days we will full refund reason is what (without broken our rules) after 7 days No Refund policy. But have some trouble with service we will give flexible refund upto 15days

7 days are enough to check a web hosting service is good or not. Of course, for any hosting companies we need to use their services for a long time to know it's stable and quality service or not.

I have ever checked a VPS hosting company for 3 days and after 3 days, I didn't satisfy with their service and requested refund with 1 reason "Bad support and low quality service."

Anonymously · Jul 29, 2016

I'd refund it. He doesn't have to give a reason within 7 days, or 30 days, depending on your business model. The truth is, most clients aren't assholes. If your service doesn't suck, people are not going to ask for a refund.

nogics · Aug 5, 2016

Honestly go with your TOS what you have posted publicly. That's the best solution. However if the account was abused badly then issue refund on your discretion.

hostnesta · Sep 18, 2016

TheCompWiz said:
What you will do if a buyer is also a reseller and buys hosting services from you and then asks for refund with no reason at all?

This is where your TOS applies.
If you don't have one, start developing it.
It should explicitly state conditions of refund.

Given that the client is also a reseller, talk it out with him. Possibly offer a better deal.

CyberHour · Sep 18, 2016

If you have state in your ToS money back guarantee and timeframe then if your customer ask for refund with or w/o reason you have to refund him.
Now if your customer ask for refund after your guarantee timeframe you have the right to NOT refund him e.g if you provide 30days money back guarantee that is enought for your customers to test your service.

You will win all paypal disputs if you decide to not refund customer after those 30days.

Anyway, 99.9% of your customers wont ask for refund if they like your service of course .

Before you refund always check your logs for spam or other illegal activity

GswHosting · Sep 19, 2016

Its an old thread but here is my answer also.
If you refuse to back his money he can post on all forums how you don't apply your TOS and 30days MBG, if its in that period. Bad reputation.
Even if he is reseller you have to give him his money back.
As @CyberHour said check for illegal activity first, who knows maybe he sabotage you or just check your services and support.

OffshoreDedicated · Sep 21, 2016

Formula is simple, Client's refund is always decided on the basis of Terms of Service (also known as TOS).

HostXNow · Dec 18, 2016

You have to go by what you advertise and the terms of service you have in place as well as any rules for money back guarantee.

If they are within the 30 days money back guarantee and they haven't broke any rules e.g., sending spam and getting your IP(s) blacklisted then you should honour the refund. If they broke a rule by mistake, then you may refund at your own discretion.

R Langley · Dec 18, 2016

TheCompWiz said:
What you will do if a buyer is also a reseller and buys hosting services from you and then asks for refund with no reason at all? Should you refund your client?

You have terms of service for a reason hold strictly to them unless it happens to be a long term customer or something like that. Such ways as if a client is a long lasting client and cannot pay his bill on time then of course you know make acceptation but refunding users just cause its a NO.

StartVM · Dec 19, 2016

I think the best way to handle this situation is common sense. If your TOS offers a refund for any reason and they are within the time period, obviously issue the refund. If not, don't issue the refund (unless you are feeling extra friendly). If you have no TOS, I know in the US you are not required to refund digital goods if a refund isn't promised. If the client bought a $5 shared hosting plan, 99.9% chance they are a nobody so you don't need to worry about them writing a slanderous review to impact your sales.

energizedit · Dec 21, 2016

I usually always give a refund if the client is nice. you should try to stick to your terms of service however. You should also weigh is the goodwill with the customer worth more than the cost of the refund?

adminandie94 · Dec 21, 2016

For stuff like this, it is very important that you have a clear refund policy posted somewhere easy to access on your website. Do you have a refund policy?

As far as there not being a reason, for them, they have one and just don't want to disclose it, it seems like. Either way, you should refund their money because "the customer is always right". Just ask them to post a positive review on your website if they liked anything about your services.

Rectified · Dec 28, 2016

As per our TOS we don't offer refunds for most of our services, but still if customer has a genuine reason and we if we cannot resolve their issue we refund them

We do offer money back guarantee with our web hosting, and we refund them if they are under money back guarantee period

We basically try to keep the customer happy but we don't let them even exploit us by asking for refund just because they found a cheaper deal or they needed service just for few days but paid for whole month or anything like that

belinda · Feb 3, 2017

For our hosting service, there is 30 day money back guarantee for first time customers per hosting service. So if the customer wants a refund within 30 days of their initial payment, we will honour our policy and do so.

However, we do not provide refunds for other situations. It is important for your terms and services to state refund policy clearly.

Midnight_Dan · Feb 3, 2017

As a lot of others above said - we normally go by our ToS first - but on a case by case basis we may decide to give a refund outside of the guarantee. If we don't refund them the full amount we do at least give them a partial refund for the rest of the billing period.

How if a buyer asked for refund with no reason?

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