Why You Need A Cancel Button! #podcastclips

6 Sept 2023 · 1 min

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A subscription business without an easy cancel button invites multi-month chargebacks and FTC scrutiny. One speaker argues a cancel button limits chargebacks to one month and shows compliance. The other warns that when some companies abuse cancellation policies, the FTC's crackdown harms the whole industry.

Chapters

I know you don't want to have a cancellation button and you want to have recurring billing and you want to ship out the product every month or charge people for the SaaS product every month. But if you don't do that, person is going to do a chargeback. Their bank's going to go in for 3 months, not just 1 month, and cancel. If you put the cancellation button, they'll cancel 1 month and they'll tell the customer, sorry, we're not doing 3 months because there's a button there. And the merchant is complying.
I agree. I get it. I totally get it. I just think that if this is like being enforced on a level of like of what you're talking— well, you got some abuses that I think that this is affecting people in my industry for sure.
Yeah. Well, the problem is, is you have a group of businesses that is abusing it and then that's getting the attention of the FTC and then it spills downhill and then good businesses get hurt.