Online therapy has taken off in recent years, getting a big boost from the pandemic. Companies like BetterHelp, Online-Therapy.com, TalktoAngel and others connect therapists to clients from around the globe seeking solace over the web. These sites enable payment to therapists via credit card as paying with check or cash is impractical online. However, that also means that with the rise of online counseling has come chargebacks from dissatisfied credit cardholders.
The problems credit cardholders have with online therapists can be placed into two categories: authorization issues and quality of service.
Claims that the therapy provider was not authorized to charge a customer’s credit card usually stems from the business model of these websites, which rely on subscriptions and sometimes provide free trials. Contributors to online discussion boards allege one major online therapy provider charges users during their trial period. They also claim that the checkout page is misleading and designed to charge a weekly based subscription a year in advance. Elsewhere, on Reddit, a user claims that the same website charged them for a subscription even though they had unsubscribed.
Needless to say, if these alleged tactics are proven true they would be grounds for a chargeback.
As far as quality goes, one would need to prove that the service is significantly not as described to get their money back through a chargeback. For example, the previously mentioned website has a complaint against it with the Better Business Bureau that says, “The amount of contact time I had with my counselors was less than a half hour for the entire month, and hardly moved beyond basic greetings. I essentially paid $260 to have brief introduction text messages with a counselor, be stood up, and then receive awkward late night apology texts.”
What will also affect the likelihood of chargebacks for online therapy is the ease of seeking a refund. Some services will refund you your money if they are unable to find you a therapist within a certain number of working days. Others enable refunds for appointment cancellation with at least 12 hours’ advance notice before the appointment time.
On the other hand, some sites that sell time packages or subscriptions refuse to provide refunds for unused time, except on a case-by-case basis in the event of medical emergency or legal circumstances.
Sites that provide an adequate avenue for recompense in case a refund is requested are less likely to lose chargebacks cases. Companies that make refunds difficult will have more difficulty defending against payments disputes.
In fact, there is a company called DoNotPay that offers to help customers initiate payment disputes with merchants, including against online therapy providers. This makes it significantly easier for customers to request chargebacks, with a company handling the bothersome paperwork and providing advice on what reason to provide for the chargeback request.
For therapy sites dealing with high chargebacks rates, the first step to getting your chargeback problem under control is making sure your refund policy and terms and conditions are clear.
There should be minimal confusion over what clients will receive when they purchase your service and what they should do when they want to end the service and/or are unhappy with the results.
However, many of the chargebacks you will receive will be illegitimate. To regain this lost revenue without losing focus on your main activity – providing therapy – you should seek the assistance of Justt. We have experience with tricky chargeback topics like subscription billing and we customize our solution to meet your specific needs. With Justt, you will have a hands-off chargeback mitigation solution that enables you to grow your business without getting distracted by the credit card payment dispute process.
According to federal law and the Fair Credit Billing Act, a cardholder can chargeback transactions on services they are dissatisfied with.
It is when the amount of a disputed card transaction is deducted from a merchant’s bank account.
The deadline varies depending on the card network. However, the most common time frame to act on a dispute is 30 days from when the chargeback was filed.
Yes, banks ensure the claim fits a legitimate chargeback reason and examine merchant evidence. However, they tend to err on the side of the cardholder.
Ensure the terms and conditions and the refund policy are clear and have helpful and available customer service. Following payment processing protocols and fraud prevention tools also helps.
The issuing bank reviews the merchant’s evidence and determines the chargeback winner. If the dispute is appealed and makes it to arbitration, the card network determines the chargeback winner.
Common causes include a cardholder who wants to cancel but doesn’t know how to or when a merchant mistakenly bills a cardholder even after they cancel.