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Ask HN: How do you handle Refund Requests for your SaaS?
6 points by artur_makly on Oct 1, 2020 | hide | past | favorite | 4 comments
Every once in a while we get a customer request like this:

"I have not been using your service but I have been billed multiple months for it without having the option to cancel in my account.[1]

How can I proceed with a refund? [2] At least the last 2 months need to be refunded and also my account closed. I will be using it again when ready. Thanks"

[1] This is not factual, since all users have easy and intuitive access to cancel their accounts via their Account Settings, and our cancellation() is seen working daily...luckily not more than 1-2x per day + it is unit-tested.

[2] We have a 0 Refund Policy. This is stated clearly on our Home page > FAQs, Pricing page, TOS, and Help Wiki, that we do not offer any refunds. https://VisualSitemaps.com https://app.VisualSitemaps.com/pricing/

Having said that, we have been known to make exceptions especially early on in our platform's lifetime when it was not performing as expected. We have improved ten-fold since those early days.

We are open to reconsider our policy.. if there is data that it is better long-term for the business. Also what happens to your Stripe account if you issue a lot of refunds? Can this be an issue?

Any advice would be great. thanks




When I was running a SaaS product we had your same basic policies, but had made some refund exceptions when we felt the platform failed or the person made reasonable requests we didn't respond to timely or appropriately. Frankly, that should always be the case regardless of how big you get or what your policy is IMO.

People do this all the time, consumer and B2B. They'll sign up, use it a little then forget to cancel and get busy and it wasn't a big enough pain point cost wise so they let it roll a couple of months then say hey I couldn't cancel 2 months ago when I tried so please refund my 2 months. As long as I could honestly say the user didn't try, and that the system was operating appropriately during that time my response was always simple. We got your request, however on your account page there is always a way to cancel and I'd explain how. Since we give you that option and it stops billing that month (or whatever you do) we have a no refund policy as part of the agreement you accepted when signing up. Then direct them to cancel their account through the app.

If someone pushes back nicely after that I might give a 1 month one time courtesy refund but never more than one month. If they are being douchy it is always a no. Trying to keep people from complaining by giving refunds is a losing battle I have learned. Look at Amazon, one of the easiest companies to get a refund/return generally and they seriously ask so few questions about it yet people complain that they are unfair and bullies etc. You will always have someone complain, so trying to "buy" their quiet through a refund doesn't work IME, just be fair, honest and try to be understanding but firm on the rules you setup.


thank you Davis.. that is very helpful advice and confirms a lot of my instincts as well.



We may in fact be charging too little...as we have not had enough complaints about it ;-) Our prices will be increasing on most plans +25% in a few days, now that we just launched a powerful suite of features.

We looked at other crawling apps in our space, and found that they too didn't offer refunds:

https://www.deepcrawl.com/terms-of-use/ https://www.semrush.com/company/legal/refund-policy/

Although this one is a clever hybrid approach which I think I will like and A/B Test: https://www.flowmapp.com/terms

4.1. At FlowMapp, we have a 30-day money back guarantee, commencing from the first payment. We don’t have any other refund options.

4.2. Except within 30 days since the first payment WE DO NOT PROVIDE REFUNDS OR CREDITS FOR ANY PARTIAL SUBSCRIPTION PERIODS OR ANY FEATURE OF COMPONENT THAT YOU HAVE PAID FOR BUT NOT USED.




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