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Watch How You Use Your Credit Card for Membership Sites

by toptones
17 replies
Ok...I wanted to pass this along as a warning since you may not be aware of the dangers of using your credit card to enroll in monthly programs like membership sites. I had an experience recently with Ryan Lee and his membership site that cost me money.

Basically I enrolled, tried the program and opted out (sending them an email) before the trial was up, but still got billed $97 US the next month. When I caught it (they didn't) I had to pay the full Mastercard bill before their refund came in. Then they failed to cancel the second month so same thing happened. Compounding the problem was the fact that when they finally refunded, the exchange rate on the CDN dollar meant I had lost $9 on the deal - as a result of their mistake. I requested a refund of this, but got no reply (not surprised, but saddened).

So a few tips:
1. Think carefully before pulling out your credit card for a continuity program. Don't just go for the free stuff unless you think you might be interested in carrying on.
2. If they offer a choice like Paypal, take it. It is easy for you to cancel a monthly program on Paypal.
3. If you do enroll with your credit card, check their help desk service soon after. Send a dummy request to see what kind of response (if any) you get. This will give you an idea about how many weeks in advance you will need to submit your cancel request if you decide not to carry on with the program. You will need time to bug them. And remember, a reversed charge to a credit card can take up to a week (maybe more) to show up, so you may end up having to pay the bill before you get the money back.

Take care...and shop wisely.
#card #credit #membership #sites #watch
  • Profile picture of the author Justin Says
    Wow, really sorry to hear that. Lots of sites out there are really just trying to take your money and see if you notice it.
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    My name is Justin Lewis. My digital marketing company has been in business for over 10 years with multiple six-figure years. We do provide a premium web design service.

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    • Profile picture of the author Ron Kerr
      I won't join a memberships site that doesn't have a PayPal payment option. I have also have problems getting out of memberships paid via credit card, whereas PayPal is very easy and beyond the control of the site operator.
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      Ron
      The Gadget News

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  • Profile picture of the author Popstar
    If you call your credit card company to dispute the charge (and follow up immediately in writing to preserve your legal rights), you shouldn't have to pay the bill while the credit card company investigates the disputed charge.

    You'll need to prove that you communicated with the owner or support desk of the membership site, though. But if you keep a copy of your emails, you should be okay.
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  • Profile picture of the author George Wright
    That is why I use www.greendotonline.com Use the card and keep just enough money on it to cover the fees you want to pay. For a $100 a month membership I'd get a separate card. It's instant and if you want to quit simply notify them you are quitting as per their TOS and DON'T have enough money on the card to clear the payment. There is no overdraft allowed on GreenDot and they don't ding you for the bounce ever.

    George Wright
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    "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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    • Profile picture of the author Lee Wilson
      Originally Posted by George Wright View Post

      That is why I use www.greendotonline.com Use the card and keep just enough money on it to cover the fees you want to pay. For a $100 a month membership I'd get a separate card. It's instant and if you want to quit simply notify them you are quitting as per their TOS and DON'T have enough money on the card to clear the payment. There is no overdraft allowed on GreenDot and they don't ding you for the bounce ever.

      George Wright
      I do the same thing with a prepaid cards, I've got them for this sole reason. Watch them though, some of them have hidden fees, don't use it for a few months and they start taking the money. I still prefer Paypal but it's still a good alternative.

      This cancelation trick isn't limited to typical membership sites in the IM world. I've had this same problem with massive brand companies. I'd say be careful with any kind of membership that doesn't leave you in control of the subscription.
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  • Profile picture of the author ArticlePrince
    I've had that problem with several sites, one took 5 months before they finally canceled. I only use paypal now for continuity, even ones I use regularly.
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  • Profile picture of the author ryanleedotcom
    Dear TopTones,

    First, I'd like to apologize for any headaches you had with my company. I will stand up and take full responsibility.

    When we launched the Inner Circle - we were not prepared for the overwhelming response. Again, it's no excuse.

    We missed emails and my staff could not keep up. Plain and simple.

    Because of that we created a new ticket system last month - and I personally make sure every ticket is answered and we are at 'zero' at the end of each day (ryanlee.com/support)

    Please send me an IM so I can make it up to you. I will certainly refund you whatever you didn't receive back (plus your $9 extra). And if you can let me know which email you sent the request to for a refund, that would be helpful to make sure this doesn't happen again.

    I've been online since 1998 and would not still be here if I didn't treat my customers with respect.

    Again, I am really sorry for the inconvenience. I try to be a voice on how to run continuity programs ethically - and it looks like we dropped the ball on this one.

    Brotherly,
    Ryan
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    • Profile picture of the author fab
      Wow, you can't beat that right there, the man himself Ryan Lee (I'm a big fan) has stepped in and promised to take care of the problem. Gotta love forums!
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      • Profile picture of the author johnng
        I agree with all was said. For one, I am extremely weary of joining membership site that will only take credit cards. For one thing, it is not possible to cancel your membership subscription from the credit card provider like you could with Paypal. With one membership site, it took over 3 months at $100 a go before I finally stop them from taking more money.
        Sad affair. I just hate crooked marketers!
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        John Ng
        http://www.homeworkers.me

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  • Profile picture of the author toptones
    Thank you Ryan,
    I appreciate your response and I truly regret having to mention you in this post. I advised your help centre several times about my request for the refund of the exchange rate charges (BTW I only made that request after the second billing).

    I will pass along the emails you request. Thank you for you offer. I know your post here will help to reassure potential future members of your circle that you are indeed keen on good customer support and high ethics.
    All the best,
    A.
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    All Things Mobile
    VICTORIA MOBILE MARKETING
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    • Profile picture of the author ryanleedotcom
      Yes, if you can pass those along to me it would be very helpful.

      I'm a stickler for customer support - and hearing about this really gets me upset. I want to make sure it never happens again.

      Just IM me all your details.

      Again, I am really sorry and I promise to make it up to you in spades.

      Ryan
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    • Profile picture of the author ryanleedotcom
      There are also a couple of ways to protect yourself...

      1. BEFORE you signup, you can contact their customer support desk with a question and see their response time. Or try calling their phone and see how long it takes for a response. In general, you should give a company up to 2 business days to respond.

      If they take any longer, you might have trouble when you try and cancel.

      2. Use a CREDIT CARD (not a debit card) to join a continuity program. It's just safer and there's less risk.

      -Ryan
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      • Profile picture of the author seasoned
        Originally Posted by ryanleedotcom View Post

        There are also a couple of ways to protect yourself...

        1. BEFORE you signup, you can contact their customer support desk with a question and see their response time. Or try calling their phone and see how long it takes for a response. In general, you should give a company up to 2 business days to respond.

        If they take any longer, you might have trouble when you try and cancel.

        2. Use a CREDIT CARD (not a debit card) to join a continuity program. It's just safer and there's less risk.

        -Ryan
        I'm quoting this because it is just GOOD info! And I was planning on mentioning the second point also. Apparently, there is some lousy loophole everyone uses if you use a debit card..... And this is from what many merchants have told me, and personal experience, folks....


        1. Disputes are HARDER with a debit card!
        2. Refunds can take a month or more to be posted.
        3. And it sounds like I am making this one up, but I am not.... Some companies will "INQUIRE" on your credit report if you use a debit card! Dollar(AKA thrifty) rentacar WILL inquire. I had my credit hurt because of them. Credit companies see inquiries as a bad sign, and they hurt your fico score. Just rent a car 4 times, and watch that score DROP!

        As for the bit about calling customer support? That is ALSO a good idea. some are LAUGHABLE, and you can often determine it simply by how they answer the phone. Unfortunately, though, MANY tech support lines now have about 3 levels. The first people you talk to may be easier to understand, but simply copy what you say for others to act on. It might be a good idea to ALSO find out some feature the product has, and ask via email how to use it. You can then get an idea of how they can really handle your problems. You would be shocked at how many just ignore problems and close it. Sometimes they even claim they took care of it.

        I appreciate what ryan did. Some would have fought it, etc... I WOULD say that $9 is cheaper than a chargeback fee though.

        Steve
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      • Profile picture of the author George Wright
        A Debit card is better because of the reasons in my post above, not a bank debit of course, but, a prepaid debit card. You havoc no problem cancelling anything with that kind of card.

        George Wright

        Originally Posted by ryanleedotcom View Post

        There are also a couple of ways to protect yourself...

        1. BEFORE you signup, you can contact their customer support desk with a question and see their response time. Or try calling their phone and see how long it takes for a response. In general, you should give a company up to 2 business days to respond.

        If they take any longer, you might have trouble when you try and cancel.

        2. Use a CREDIT CARD (not a debit card) to join a continuity program. It's just safer and there's less risk.

        -Ryan
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        "The first chapter sells the book; the last chapter sells the next book." Mickey Spillane
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        • Profile picture of the author seasoned
          Originally Posted by George Wright View Post

          A Debit card is better because of the reasons in my post above, not a bank debit of course, but, a prepaid debit card. You havoc no problem cancelling anything with that kind of card.

          George Wright
          well, I WAS talking about in general. STILL, you might have the inquiry problems I spoke of. And the refund problems may happen.

          Steve
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  • Profile picture of the author cherylyeo
    Thank you for bringing this to our attention. I will be very careful not to lead myself into the similar situation. There seemed to have very positive remarks for using paypal. I will just stick to paypal for all my purchases from now on.
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  • Profile picture of the author toptones
    Just IM me all your details.
    So what's an IM? The same as PM (private message)?
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