The cardholder claims the merchant billed their card even after they canceled a subscription, or they didn't know it was a subscription, to begin with.
Cause
The original transaction terms weren't clear.
The cardholder might have canceled the subscription too late.
The merchant didn't cancel the subscription.
The cardholder got the service or product after canceling their subscription.
Response
Cardholders and issuers have 120 days to file a dispute related to the claim against the merchant.
Merchants have 45 days to respond to the claim in dispute.
Steps to Prevention
Make the terms of your subscription clear.
Always remind clients of upcoming charges with adequate time during the subscription billing cycle.
Ensure you act on subscription cancellation requests immediately and confirm the cancellation by text or email.
If you receive a chargeback from a cardholder, blacklist them and cancel future transactions.
