Hacker News new | ask | show | jobs
by kayhi 1591 days ago
How do these contracts hold up to charge backs through the credit card company?
3 comments

Also, consumer protection laws. I smell a pile of fines and lawsuits in their immediate future.

As I understand the charge back process, vendors are generally assumed guilty until proven innocent, and it's not going to be worth Adobe's time to fight these. On the other hand, it costs credit card companies a boat load of money to acquire customers, and failing to issue legitimate chargebacks is a great way to lose customer. On top of that, the bank makes more money from a chargeback than a legitimate charge.

I've successfully issued charge backs against Experian, for example. You can't get much more in bed with the credit industry than they are. (Though the operator at the credit card company did say that Experian was responsible for about 50% of their caseload that year...)

So what’s the chargeback reason?
In the Adobe case, I'd go with "unauthorized charge". Experian was running a similar con, and it worked with that incident.
They don't. The business model relies on most people not challenging it or not being aware that chargebacks are a thing.

Similarly, this may not fly in court either, but again the business model relies on most people not escalating all the way up (and in their case, they won't pursue it either, as they'd lose more in legal fees even if they ultimately win the case).

Nasty business models like this won't survive if people stood their ground and knew their rights better.

I was able to cancel a while ago by threatening with a chargeback so at least the threat of it seems to help.