The problem with the card subscriptions for consumers, as in this case, is that often after they have signed up for a free-trail with a credit card, then they forget that they now qualify for the paid service your website is offering, and the yearly subscription payment is processed.
I recently had a similar issue with Amazon Prime service, I had subscribed but not added a valid card so the subscription had never activated. When I added a card later to make a purchase, and the prime renewal was due, the prime subscription kicked in.
In this case Amazon cancelled the subscription and refunded the amount in two days, although they were clear that this was because I had not used it for any delivery (fair enough I think).
So though I accepted it was my fault, Amazon retain me as a customer as I felt that I was treated fairly even though I made a mistake.
How your customers feel will be a big part of your decision making process. If you have not really suffered any financial loss then its probably better to do the refund even if you are in your rights not to.
The reasons to provide the refund include:
- Not having disgruntled customers in your community and distracting from your main focus
- Avoiding customer calls and emails and dealing with complaints
- Avoiding yoursite-sucks.com results in internet searches
- The chance of selling customers something else in the future.
- Avoiding a high chargeback rate that may give your business higher fees or make it harder to get a processor
Consider your ability to process refunds, if you are going to do it, make it clear to your customer when you will do so and make sure you meet this promise If you are not going to process the refund then make sure your acquiring bank will accept what you provide as proof of delivery, to challenge the chargeback.
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