Subscription and SaaS chargebacks
prevented at signup, answered with records.

Where subscription disputes come from

Recurring billing creates disputes one-off sales don't:

• Cancelled recurring (Visa 13.2, Mastercard 4841). The customer says they cancelled, or tried to, and was charged again.
• Fraud claims on renewals (Visa 10.4). A customer who doesn't recognize a card-on-file renewal reports it as fraud.
• Trial conversions. A free or discounted trial rolls into a full price the customer says they weren't told about.
• Product subscriptions. A box shipped after a skip or pause request, or a renewal for a box the customer says never arrived.

The same patterns hit subscription e-commerce (boxes, refills, memberships on Shopify) and SaaS (monthly or annual software plans billed on Stripe, Recurly or Chargebee).

Visa's rules for trials and introductory offers

Since 18 April 2020, Visa requires merchants worldwide that offer free trials or introductory offers as part of a subscription to:

• Get the cardholder's express consent to the ongoing subscription at enrollment.
• Send a copy of the terms at enrollment, even if nothing is charged: that it is a subscription unless cancelled, the start date, the goods or services, the ongoing amount and billing frequency, and a simple online cancellation link.
• Send a reminder at least 7 days before a recurring charge when a trial or promotional period is about to end, or when the terms change (for example price or billing period), with a link to online cancellation.
• Offer an easy way to cancel online, however the customer signed up.
• Add a trial-related descriptor (such as "trial") on the first charge after a trial.

Merchants can answer a related dispute by showing the cardholder expressly agreed to future charges and was notified before the post-trial charge. Visa recommends all subscription merchants follow these principles. Rules change, so confirm current requirements with your acquirer.

Prevention steps

1. Put the price, billing frequency and renewal terms next to the payment button, with a checkbox to agree.
2. Email a receipt for every renewal with a cancellation link.
3. Send reminders before renewals; Stripe suggests about 7 days before a yearly renewal and 2 to 3 days before a monthly one.
4. Make cancellation self-serve and confirm it by email with the effective date.
5. Offer a prorated or full refund to someone who cancels right after a renewal; it is cheaper than a dispute.
6. Use a descriptor that names your product, not a parent company customers don't know.

Evidence that answers subscription disputes

Stripe's guidelines for "subscription canceled" disputes list: the cancellation policy as shown to the customer, how and when it was disclosed, why the subscription wasn't cancelled (or why the charge is valid if it was), renewal notifications, and proof of continued use after the claimed cancellation date. For SaaS, login and usage logs after the renewal are often decisive. For product subscriptions, add the shipment and delivery of the disputed box. For fraud claims on renewals, Visa's CE 3.0 FAQ confirms Compelling Evidence 3.0 is available for recurring transactions.

How Verdikx helps

Verdikx is a fraud, chargeback and dispute platform for e-commerce and SaaS merchants, built by Verdikx LLC (New Jersey, United States).

• Subscription evidence connectors (Growth, $79/month, and Pro; all in beta). Recharge, Skio and Bold Subscriptions for Shopify subscription stores; Recurly and Chargebee for subscription billing. Subscription starts, cancellations (with Chargebee's cancellation reason), charges, invoices and credits become evidence for subscription-canceled disputes. Recharge and Skio also let you paste the subscription terms shown to customers.
• Cancellation-timing check. The contradiction finder (every plan) looks at customer messages on record for when the customer first asked to cancel, and flags records that contradict the claim. You approve each finding.
• Stripe disputes (Growth, live). Stripe disputes import automatically and your reviewed evidence is submitted from the case.
• Evidence checklist. Each subscription case shows whether subscription terms and cancellation history are on file, with an upload slot when they aren't.

Who can set it up today: subscription stores on Shopify install the app directly. A SaaS company billing through Stripe, Recurly or Chargebee signs up on verdikx.com, chooses Just disputes from my processors and pays by card; Stripe disputes are included on every plan in that setup, and the subscription tools (beta) connect on Growth and Pro.

What Verdikx does not do

• It doesn't run your billing or send renewal reminders. When a buyer disputes, or a Stripe early fraud warning arrives, Verdikx can cancel their Recharge subscription, or pause or cancel a Skio or Stripe Billing one, after you confirm (Growth and up; the Recharge and Skio connections are in beta). It acts automatically only on early fraud warnings and only if you turn that on, and it never changes Shopify's own subscriptions.
• Card-network alerts that let you refund before a dispute (Visa RDR, Mastercard Ethoca) are coming soon.
• It does not guarantee outcomes; issuers decide.