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Asking for ID when issuing a refund policy for ebook?

by MovingAround
26 replies
Hey guys,

So I'm considering offering a refund policy for my ebook but, to try and stop people taking advantage of the refund policy, I'm considering asking for a form of ID (scanned copy) when they request a refund so I can verify it was him/her who bought the ebook. This way, the serial refunders would think twice about asking for a refund knowing a copy of their passport/driver's license is in my posession.

Would asking for a copy of their passport/driver's license be OK/legal as part of my refund policy's process?

Thanks!
#ebook #issuing #policy #refund
  • Profile picture of the author CyberAlien
    The serial refunders will just file a chargeback, bank reversal, or PayPal dispute.
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    • Profile picture of the author RobinInTexas
      Sell a good product and don't worry about the serial refunders. Just keep moving forward.

      You can't do much to stop them and it's not like you have to repackage it and put it on a shelf to sell it again.
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      • Profile picture of the author CyberAlien
        Originally Posted by RobinInTexas View Post

        Sell a good product and don't worry about the serial refunders. Just keep moving forward.
        Don't ignore serial refunders, they will cut into your profits. But having a refund policy in place like that isn't going to help. There are other solutions out there that work better.
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        • Profile picture of the author RobinInTexas
          Originally Posted by Chase Watts View Post

          Don't ignore serial refunders, they will cut into your profits. But having a refund policy in place like that isn't going to help. There are other solutions out there that work better.
          How do they cut into your profits? You never had any real profit attributable to them. Their transaction is a wash. It the 30¢ paypal charges you is a problem, you're either not charging enough in the first place or not generating enough volume to even be in business.
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          Robin



          ...Even if you're on the right track, you'll get run over if you just set there.
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  • Profile picture of the author Rod Cortez
    Originally Posted by MovingAround View Post

    Hey guys,

    So I'm considering offering a refund policy for my ebook but, to try and stop people taking advantage of the refund policy, I'm considering asking for a form of ID (scanned copy) when they request a refund so I can verify it was him/her who bought the ebook. This way, the serial refunders would think twice about asking for a refund knowing a copy of their passport/driver's license is in my posession.

    Would asking for a copy of their passport/driver's license be OK/legal as part of my refund policy's process?

    Thanks!
    I'm not an attorney, nor do I play one on TV, but I'm almost certain there's a legal component here if you're asking for a scanned copy of someone's ID.

    Frankly, it's not worth it.

    Refunds are a part of doing business. Yes, there are some things you can do to lower them and some marketers swear that if you're refund rate is low, then you are not selling hard enough.

    In any case, I think it's an extra step that would turn out to be a logistical nightmare and quite possibly a legal one.

    Update: I think with some higher end products or services this might be valid, definitely check with an attorney.

    RoD
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    • Profile picture of the author beer30
      Nowadays people are paranoid about ID thief so anyone that read your refund policy would most likely NOT buy. I know I wouldn't. Plus as others have said if you didn't refund them they can just file a cb.
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  • Profile picture of the author SamuelCarter
    Hello,

    As mentioned above in regards to refunds they can, get this via paypal or the platforms you may be selling your ebook.

    You can gather that you may have some refunds but this is business, if there is a refunds ask that individual why they wanted a refund, as the information they give you can be then used to make adjustments and add more content, where you may of been missing out.

    Then if you do that, offer that person the Ebook again, could give a slight better price but great way of turning things around

    Samuel
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  • Profile picture of the author MovingAround
    Well, my question comes from having researched several threads here on WF. There are some who say not to worry about serial refunders and have a no-questions-asked refund policy while others say to state no refunds in the copy or even not to mention it (especially if only using Paypal and not Clickbank).

    The problem is that the product is priced high, thus those who would not normally ask for a refund may ask for one. The product is itself of a high quality (already sent to people for reviews and have great feedback), but I'm just wary of the % of people who may not ask for a refund for a low-priced product but would for a high-priced product (despite being satisfied with the product). Thus a more elaborate refund policy would deter these % of customer who may be inclined to ask for a refund given the price point. I know asking for ID is a bit hardcore, which is why I'd rather hear it from you folks.

    In any case, I'm going to be researching more on this topic and perhaps ask another question further on.
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  • Profile picture of the author Alex Blades
    I'm considering offering a refund policy for my ebook but, to try and stop people taking advantage of the refund policy,
    If you are trying to prevent people from taking advantage of the refund policy, then it's not a refund policy, it's just a bunch of words. Save yourself the headaches and refund them anyways, or they will just file a dispute with Paypal or credit card company. Don't risk getting your account limited because of serial refunders.

    Just by you coming up with something like this, tells me you are stressing out over it. You will drive yourself crazy worrying about serial refunders..
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  • Profile picture of the author Stuart Walker
    Sounds like a bad move. You don't really need the ID to issue a refund so you're basically just trying to deter people from getting refunds and making things difficult for them. Whilst it might stop serial refunders (which IME isn't something worth worrying about) it's also bad customer service for legit customers.
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  • Profile picture of the author sabatek
    Originally Posted by MovingAround View Post

    Hey guys,

    So I'm considering offering a refund policy for my ebook but, to try and stop people taking advantage of the refund policy, I'm considering asking for a form of ID (scanned copy) when they request a refund so I can verify it was him/her who bought the ebook. This way, the serial refunders would think twice about asking for a refund knowing a copy of their passport/driver's license is in my posession.

    Would asking for a copy of their passport/driver's license be OK/legal as part of my refund policy's process?

    Thanks!

    Maybe you should look into WHY they would want to return it? If enough VALUE is given people won't just return it. Also I would not think of returning a eBook that just wrong. Give enough information: 1st 5 pages then put a no refund. If you state you need a copy of something will KILL your repeat business.

    You want to provide so much VALUE and make returns so easy they wouldn't think twice about returning and want to buy from you again.
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  • Profile picture of the author kindsvater
    Looks like a lawsuit ready to happen for violating privacy rights and refusing to give a refund. In some places you you may not be able to require scanned ID information for a purchase so what makes you think you can require it for a refund?

    I fail to understand how an ID will "prove" someone made the purchase. You may just have an email address. A physical address on an ID may not match a PayPal address if someone has moved.

    Basically, you're making some 'implied threat' because you have a copy of their drivers license or passport and will do something with it if multiple refunds are made. That would likely bring some swift and severe legal action.

    Good thing you asked on the forum before actually doing this.

    Next idea ... requiring dna samples from the buyer and 5 confirmed relatives so you can verify an ID before giving a refund on your wonderful ebook.

    .
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    • Profile picture of the author 24hours
      I would never in a million years give a stranger a copy of my DL or passport.
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  • Profile picture of the author Walter Parrish
    Originally Posted by MovingAround View Post

    Hey guys,

    So I'm considering offering a refund policy for my ebook but, to try and stop people taking advantage of the refund policy, I'm considering asking for a form of ID (scanned copy) when they request a refund so I can verify it was him/her who bought the ebook. This way, the serial refunders would think twice about asking for a refund knowing a copy of their passport/driver's license is in my posession.

    Would asking for a copy of their passport/driver's license be OK/legal as part of my refund policy's process?

    Thanks!
    lol reminds me of a guy of a well known membership program asking for drivers license, passports etc. if we wanted to join his affiliate program. As a marketer that wasn't going to happen for me, because I don't know him or anyone in internet marketing like that.

    Result I never joined his affiliate program nor do I mention it to my lists. Why? because I don't know what he would do with id information nor will your customers have any idea who you are or your reasons for asking.

    What would I do if I were you? I would offer refunds after 30 days that way you will slow down serial refunds, but the truth is I wouldn't make it an official policy until it actually becomes a problem. If your product is good few will request the refund.
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  • Profile picture of the author phil838
    That's an awful idea and having a refund policy like that will scare away about half your customers.

    Which is better? Selling 100 eBooks and refunding 30, or selling 50 eBooks and refunding 0?

    The real answer to this problem is not to sell eBooks. Sell and "online courses" that require an account on your website to access. Keep updating the course with new content, so any member that wants a refund will not only lose access to the existing content, but not be able to get the new stuff you continually post.

    That will lower your refund rate!
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  • Profile picture of the author Farish
    Just one more thing I want to throw out here.

    If the OP is in the United States, the instant you ask for Driver's License information, you now fall under the Driver's License confidential laws that your state most likely has.

    As identify theft becomes a bigger issue you put yourself at risk with this sort of policy.

    I know major retailers use a 3rd party system to store this information know as the Retail Equation to prevent refund fraud but they have the investment of millions of dollars to do this.
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    • Profile picture of the author MovingAround
      Thank you all for the replies!

      Originally Posted by Broyde View Post

      You said that you were selling a high priced product...you have reviews that confirms this. Since you feel so strongly about this why not just forego the refunds. There are programs here where the owner says that they are not doing the refund thing.

      But asking for ID is a hurdle that to me is more difficult to deal with as a customer. I would prefer to be told upfront that I would not get my money back and then whatever happens, it would be all on me. If I can't afford to lose the money, then I can't buy.
      Makes sense. I was actually 99% confident that asking for an ID carries some form of legal component that is best avoided anyway. However, this being my first time selling a book myself, I want to consider everything in terms of refund policy and ask questions first. Glad to hear that the consensus is that having such a policy would deter customers from purchasing.

      I've crossed the idea off now.


      Originally Posted by sabatek View Post

      Maybe you should look into WHY they would want to return it? If enough VALUE is given people won't just return it. Also I would not think of returning a eBook that just wrong. Give enough information: 1st 5 pages then put a no refund. If you state you need a copy of something will KILL your repeat business.

      You want to provide so much VALUE and make returns so easy they wouldn't think twice about returning and want to buy from you again.
      One of the ideas I had was offering the first chapter for free. The sales page is extremely detailed too, so the potential customer is getting a taste of what the book will be like. I don't sell dreams or hype my stuff and I believe I've done a good job preselling the book from the feedback I've gotten from the sales page.

      I understand that the easiest way is to simply refund and that's it. But considering the high price, it'd mean I'd have to leave a considerable amount on reserve to cover any possible refunds. That plus the fact that perhaps those who would not otherwise ask for a refund, would do so if the product has a high enouhb price, is what is kind of making me think so much about the refund policy.

      I think I have a good foundation now with regards to making the refund policy; I think I'm just going to split test it and see then.

      Thanks for the replies again!
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      • Profile picture of the author Broyde
        You speak about offering parts of the book for FREE...a first chapter etc. I have seen that being done before. From personal experience I have never bought one of those books. Once I was through browsing that was it. On the other hand, books where I was told what was in it, without actually seeing what was on the inside I bought.

        What worked well as an attraction for me was when writers say things like see page 24 to learn how to fix AB and C. On page 36 there is a flowchart showing how to complete process DE and F etc.
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      • Profile picture of the author sabatek
        Originally Posted by MovingAround View Post

        Thank you all for the replies!



        Makes sense. I was actually 99% confident that asking for an ID carries some form of legal component that is best avoided anyway. However, this being my first time selling a book myself, I want to consider everything in terms of refund policy and ask questions first. Glad to hear that the consensus is that having such a policy would deter customers from purchasing.

        I've crossed the idea off now.




        One of the ideas I had was offering the first chapter for free. The sales page is extremely detailed too, so the potential customer is getting a taste of what the book will be like. I don't sell dreams or hype my stuff and I believe I've done a good job preselling the book from the feedback I've gotten from the sales page.

        I understand that the easiest way is to simply refund and that's it. But considering the high price, it'd mean I'd have to leave a considerable amount on reserve to cover any possible refunds. That plus the fact that perhaps those who would not otherwise ask for a refund, would do so if the product has a high enouhb price, is what is kind of making me think so much about the refund policy.

        I think I have a good foundation now with regards to making the refund policy; I think I'm just going to split test it and see then.

        Thanks for the replies again!
        Your welcome and I think split testing is great ideal Good luck!
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  • Profile picture of the author rosetrees
    I would NEVER send you a copy of my real ID. However, there are loads of fake passports, driving licenses etc available as images on the internet. If you were daft enough to ask me to send you my ID, I'd send you a fake one with my name and photo.

    How does a scanned copy of anything that can be photoshopped verify my identity? Suppose I signed up as Roger Rabbit and paid you - how would expect me to verify that?

    Best option is not to have a refund policy if you are worried.
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  • Profile picture of the author Richard Tunnah
    This would go against a number of UK laws - distant selling rules and the data protection act. As these are government enforced laws you could get a fine the size of a luxury home!
    I'd also state it's bad practice. Remember someone that has a bad experience usually tells 5 people on average so isn't it best to make it easy to refund and get rid of such issues?
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  • Profile picture of the author Will Edwards
    Originally Posted by MovingAround View Post

    This way, the serial refunders would think twice about asking for a refund
    Actually serial refunders will think twice about buying it. But then, so too will legitimate buyers.

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    • Profile picture of the author R Hagel
      Another thing you may want to consider is turning your ebook into a physical product. This will reduce some of the casual refunders simply because people have to ship the physical product back to you before they can get a refund. (And, ya know, that's like work.)

      Becky
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  • Profile picture of the author WillR
    You've crossed this idea off your list and that's good.

    Just have a regular guarantee. If your product lives up to it's reputation then the only people who will try and refund the product are the serial refunders. You do not want these people as your customers so best you know who they are. Refund them the money and block them from buying any of your future products.

    Refunds are a cost of doing business. You either have a refund policy or not. If you have one then you have to take the refunds that come with it. But if your product is as good as you say it is then the number of refunds you get will be tiny in comparison to the number of extra sales you get by having the refund policy in place.

    Concentrate on the extra sales a refund policy is bringing you and not the tiny number of serial refunders. Those people are not worth wasting time on. They are the sort of people who would just go straight to their bank and file a chargeback if you tried to put steps in the way.
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    • Profile picture of the author lanew
      Originally Posted by WillR View Post

      You've crossed this idea off your list and that's good.

      Just have a regular guarantee. If your product lives up to it's reputation then the only people who will try and refund the product are the serial refunders. You do not want these people as your customers so best you know who they are. Refund them the money and block them from buying any of your future products.

      Refunds are a cost of doing business. You either have a refund policy or not. If you have one then you have to take the refunds that come with it. But if your product is as good as you say it is then the number of refunds you get will be tiny in comparison to the number of extra sales you get by having the refund policy in place.

      Concentrate on the extra sales a refund policy is bringing you and not the tiny number of serial refunders. Those people are not worth wasting time on. They are the sort of people who would just go straight to their bank and file a chargeback if you tried to put steps in the way.
      I agree with Will. I've done with and without refund policy, and with the policy of giving a refund, I saw sales go up, and although I saw the number of refunds go up too, my over all sales were worth it.

      Be well,
      Lane
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