Quote:
Originally posted by goBigtime
In that case my cell phone provider should turn off my extra cell phone... as it just sits here 99.999% of the time doing nothing.
I ordered it.
I can't go back 6 months later and say "hey I never used this... I'm gonna charge it all back."
NetRodent - Now rerun your stats & figure out how much of your legitimate revenue base you would be killing off if you decided to start clipping 'idle' accounts.
Just because some people want to be scammers and chargeback stuff that they know they ordered, and have all the info they need to cancel at any time..... doesn't mean everyone is like this.
Most people own up to the fact that it's their irresponsibility & procrastination that led to the recurring billing after they might have wanted to quit.
We're just businessmen - not mind readers. We don't know when they want to cancel.
|
I'm going to be running those numbers today. I imagine the majority of idle accounts don't chargeback and culling them would probably result in a huge loss of revenue. If that's the case, there's a potentially fatal flaw in our business.
Lets take your cellphone example. What percentage of cellphone subscribers don't get any value from their phones for months at a time? A cell phone can still be of value even if you don't use it (ie in case of emergencies or to recieve infrequent but important calls). I would venture to guess that most cellphone subscibers use their phone. I would also venture to guess that most cellphone subscribers know they have a phone and understand their financial responsability to the phone company.
In the case of a porn site, there is no value to someone who doesn't use it. You can't claim that someone would keep a subscription for an emergency session of masturbation. Also, convention wisdon in our industry is to make sure the subscriber understands a little as possible about the fact they will be rebilled.
In short I assume that most cellphone users know they have a phone and know they have to pay for it while most porn site members don't know they have a membership or that they have to pay for it. That seems like a pretty major problem. Perhaps that's the problem Visa is trying to correct?