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MDLaw, Attorney
Category: Business Law
Satisfied Customers: 6135
Experience:  Experience in business law, contract law and related matters.
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Hello, We are an online tutoring company. As per our

Customer Question

We are an online tutoring company.
As per our billing policy, customers purchase tutoring hours in advance for a whole month.
Billing is done in advance at the beginning of every month for a certain program like 8 hrs/month.
We give them the chance to reschedule one session per month. There is no refund if the customer cancels sessions from his/her side.

However, a very small number of customers cancel sessions at random, and then call the credit card company and get refund from the credit card company.
We do not have enough proof to show the credit card company that the customer has accepted our terms and conditions, even though the
Terms and conditions are on the customer portal and we explain it each and every customer when he/she joins.

This is the process that we are planning to do it.
When a new customer joins we send him/her a welcome mail asking him/her to activate his account by visiting the password XXXXX customer(parent) portal.
The customer must login to the parent portal and activate the account before the student can start the sessions.
There is an "ACTIVATE" button highlighted on the new customer's portal(website).
When the customer clicks the ACTIVATE button, a page containing the attached terms and conditions is displayed.
The customer checks a radio button which accepts the terms and conditions and then clicks a SUBMIT button.
The customer is activated if the terms and conditions are accepted.
We capture and store the IP address ( and the time stamp)of the customer machine from where the terms and conditions were accepted.

Is this proof enough to present to the credit card company that the customer has actually accepted the terms and conditions?
Submitted: 4 years ago.
Category: Business Law
Expert:  MDLaw replied 4 years ago.
Hello and thank you for using the JA website. I look forward to assisting you today.

On what basis are they getting refunds? When you say refunds, are you referring to chargebacks?

Customer: replied 4 years ago.

Yes, I am referring to chargebacks.

We charge their card for 8 sessions at the beginning of every month.

Sometimes the student cancels multiple sessions because of random reasons, while our teacher is waiting. They simply say they have taken only 3 sessions and pay for only 3 sessions, while our program is for 8 sessions per month whether they use it or not.

It is mentioned in the terms and conditions. They will say they did not accept our terms and conditions, even though we explain it to every customer on the phone and keep a copy on the customer's individual portal.

Expert:  MDLaw replied 4 years ago.
What reason do they give the credit card company for the chargebacks?

Customer: replied 4 years ago.

they have taken only say 3 sessions.

they did not get service fir the paymrnt etc.

Expert:  MDLaw replied 4 years ago.
Thank you for the additional information, Biju.

In a chargeback situation (and chargebacks are a part of almost every business, especially online businesses), the merchant (you) need to prove that the customer got the services they requested if they are telling the credit card company that they did not receive such services. If you are not currently capturing their agreements on your end, you are going to need to start doing that because, providing a written agreement is the only way to prove that the purchase was made. A digital signature is fine. You just have to be sure that the agreeing to the terms and conditions is captured in your database so that you can easily print it out and send it to the credit card company when a customer does a chargeback.

Please let me know if you need any additional information.

Expert:  MDLaw replied 4 years ago.
Please let me know what information, if any, you need. If not, thank you in advance for your positive rating since your positive rating is the only way that we experts get credited for having researched and answered your legal questions today.