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People Getting Refund But Still Using The Software

by digitalproductreporter
7 replies
As part of customer service I always ask for a URL so I can see what is going wrong with the customer. Usually it's really easy to fix.

Now I'm noticing a bad trend, people ask for a refund, i give the refund, and then when i check the url a few weeks later my software is still live there.

I never think twice about refunds but if you get a refund and you still use the product it's really annoying (it takes my time and money to make these things).

How do you stop people from using your software if you sent them a refund? Any creative ideas?
#people #refund #software
  • Profile picture of the author Chris Ramsey
    This is why I try to stick with some sort of authentication when the user installs the program.

    In some of my apps I have something as simple as a required newsletter signup. When the program starts up, it pings my email list ("resubscribes") and if they're already there, they go through into the main area of the program. If not, they need to enter their details - but if they've asked for a refund, they're put on a "block" in that particular list so they can't access anything but the main page asking for their details.

    A web based program could to the same thing pretty easily, but you'll want some sort of encryption if it's an expensive piece of software.
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  • Profile picture of the author SteveJohnson
    Chris outlines a simple procedure.

    Something to think about, however, is what happens if your authentication server is offline or unavailable? You'd have a pretty pissed-off customer.

    You'd need (or should) build in some provision as to what the app will do when it is unable to authenticate.
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    • Profile picture of the author schabotte
      Definitely an authentication scheme is the only way. And in the web world of PHP and such, you will want to "compile" the code to protect the scheme.

      Here are the issues

      1) When purchasing the software, a unique registration key will need to be issued to the purchaser.

      2) That key will need to be entered during installation and stored somewhere use with future authentication attempts.

      3) Authentication needs to be allowed to fail some number of times to allow for an unreachable authentication server. (Really it should be allowed to fail any time it cannot reach the authentication server - fail meaning that the program runs fine.) Oh, and if course if authentication works and shows the program needs to be disabled, you need to have a mechanism in the client's program to just prevent it from running in the future.

      This is all good for web based apps but for PC based apps, you have the issue of someone not being connected to the web (which really is item 3.) So you have to decide if you are going to supply a kill code that they must enter while online to shut down the PC app or assume that some of the time that they run the program that they will be online and a kill code can be sent at that time if they are no longer authorized users of the software.

      ---

      There are other issues like if multiple installations are allowed, etc... but that is basically how authentication can work in a fairly robust manner - not pissing off your customers but eventually disabling the refunded customers.
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  • Profile picture of the author OnlineMarketingSys
    Additionally, one simple to use method that seems you already are taking the first step to deploying would verify that your canceled customers are no longer using your software on their servers.

    If it turns out they are using unlicensed software, a quick email reminding them that they need to purchase a license usually does the trick. If they refuse to pay for the product and continue to use your software, you can send a DCMA request to their webhost and 99% of the time their webhost will require them to purchase the software or order them to take it off or possibly cancel their account.
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  • Profile picture of the author sbucciarel
    Banned
    I'm having some software developed that if you get a refund, the license is revoked and it doesn't work anymore. Otherwise, people will do what you say they're doing as well as spread it out all over the Internet for free and/or sell it themselves.
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  • Profile picture of the author Gary King
    If you can verify they are still using it, then call them, email them or send a certified letter (or engage your lawyer to do so) demanding repayment.

    Modify your TOS when people purchase to include a reactivation fee (penalty) for just such a case.

    Sorry - stinks when people steal stuff.
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