With Paddle now taking care of Master English’s complete payments stack, this single source of revenue truth uncovered an issue with chargebacks.
A chargeback is when a consumer disputes a transaction with their bank and has the funds returned to their account. They typically occur when the customer believes a transaction was fraudulent, unauthorized, or unsatisfactory, but – as in Master English’s case – they can also be the result of failing to provide certain communications with customers, such as pre-billing notes, receipts, and information on the published refund policy.
Chargebacks can be a significant burden for businesses as they result in financial losses (having to repay an amount plus a chargeback fee), are time-consuming, and can increase the risk of fraud.
“We had really focused our efforts on product development, we hadn’t made it a priority to monitor our chargebacks manually. We had doubled our retention over the past year and had an average rating on the Apple App Store of 4.9 out of 5. Based on our 10+ years of experience in different markets, we didn’t consider there might be an issue around chargebacks, so we were very surprised when Paddle brought this to our attention.”