Controversial take here. Sue your customer. No really.
Banks operate on risk, make chargebacks risky.
Some of these chargebacks sound like straight up fraud. Three months of usage and using their bank to reverse a payment.
Make Fraud Spicy Again
Banks operate on risk, make chargebacks risky.
Some of these chargebacks sound like straight up fraud. Three months of usage and using their bank to reverse a payment.
Make Fraud Spicy Again
The best you could do is send your client to collections, though if you try and mess with their credit report, that incurs liability on your part. Funny enough, German companies do send SaaS/IaaS clients with small bills owing to collections, even for amounts as small as 15-20 EUR.
From everything discussed in the article, there are a 2 major takeaways:
1) You need to avoid chargebacks as much as possible.
2) If a chargeback does happen, the chances of winning are basically zero — unless you can convince the customer to withdraw it.
The total costs of making the claim were more than the amount I'd claimed, but I'd been careful to provide all the proper notice and offer to settle for the amount of the claim, so they were awarded against the defaulting client.
It was great fun and I think it would have been fun and educational even if I'd lost. Would definitely do it again.
The best you can really do is be large enough that cutting ties with your business entirely isn't feasible for the customer.