Recurring Billing and Chargeback Prevention for Online Coaching

Chargebacks in coaching occur from unclear return policies, unsatisfied clients, or non-fulfillment of promises/communications. Some people forget they enrolled in automatic payments; others think they did not get their money’s worth. A handful might try to game the system to get free services (which, in the end, shoots all other honest practitioners in the foot), but avoiding chargebacks arises from more than just quality services. Professionalism in communication, mistakes, and agreements always in writing is critical, plus the requirement to engage payment processors who understand coaching and recurring payment solutions^[1].

Not all processors will love your coaching business. In fact, many disputes relate to chargebacks in coaching, and since there is never a tangible product rendered, many processors, unfortunately, classify it as “high risk.” Gaining access from online merchant account providers who understand the coaching world and your business model is vital. You want processors who embrace automatic payments and recurring charges, who can allow you to respond to chargebacks, and who are flexible with payment terms. They can provide lower fees while bringing less resistance and increased scalability than traditional processors^[2].

Many processors are for general trading use but have strict applications. Many non-specific processors have publicly accessible policies in opposition to coaching and mentoring, especially financial, wellness, and personal growth. Working with online merchant account providers who specialize in high-touch, service-based ventures ensures you won’t get funded or shut down with no notice one day. They can also help with onboarding for your business needs for subscriptions, whether monthly, quarterly, biannually, or annually^[3].

One of the simplest ways to avoid credit card processing fees and subsequent chargebacks is to clearly communicate with your clients at the purchase point. Always use transparent subscription language with your offerings, including when you’ll be charging them, how they can cancel services, and what your refund policy entails. Include this in the checkout cart and the confirmation emails sent afterwards. Should a chargeback come into play, a transparent paper trail will be to your advantage.

These days, many online merchant account providers come equipped with fraud prevention features and chargeback alerts. Automated chargeback alerts inform merchants when a chargeback has been applied, allowing you to settle a dispute beforehand before it cuts into your revenue. Likewise, automatic alerts for fraudulent events ensure that merchants don’t lose money on nefarious payments. Automated access to reporting also assists in finding trends for failed payments or repeat cancellations^[4].

One way for merchants to combat credit card processing fees associated with chargebacks or credit card disputes is to ensure their protection upon payment. Require CVV verification, AVS, and any payment for rendered services that are ongoing should utilize a two-step opt-in process. Not only does this help reduce potentially fraudulent charges on your end, but it also helps give customers peace of mind about your process. A customer aware of their responsibility is less likely to dispute your charges.

Flexibility breeds trust, and trust equals fewer chargebacks. When customers can easily cancel their service, they’re less likely to dispute with you. Establish obvious cancellation routes and lenient refund timelines that won’t hurt honest consumers. For instance, a “no questions asked” refund during the first 7–14 days, as well as a satisfaction guarantee, goes a long way in not wanting to process a chargeback. In addition, it means so much for a positive brand experience, and it opens the door for potential re-enrollment down the line.

One of the most undervalued aspects of managing recurring billing is evaluating the wellbeing of your payments ecosystem. Leverage your online merchant account providers to assist monitoring failed transactions, expired credit cards, suspensions of subscriptions and churn. This data empowers you to stay ahead of the game and proactively reach out to customers, which helps save you lost revenue before it happens. It’s a win/win situation for you and your customers.

Your payment process for online coaching should be simple, mobile-friendly and secure. Avoid overly long applications and utilize autofill where applicable. Use a branded SSL-secured payment page and various payment processing options, credit card, ACH, and digital wallets. If you offer a payment plan during the course of your service, let those terms be known upfront. The easier the payment process is, the less likely someone will abandon the cart and the better the first impression, fostering professionalism to reduce chargebacks.

There’s no time to invoice manually when your coaching business is thriving. Recurring billing options, with the right online merchant account providers, make it a seamless process. Automation reduces human error and ensures timely payments while simultaneously increasing cash flow^[5]. You can also automate payment reminders, renewals, and upsells, making payment processing an integral retention and growth tactic.