Since early March our team has spoken with 100's of sports businesses across the country. One of the most consistent concerns for business owners and program directors is the risk of refunds and chargebacks during Covid-19. We have established a feedback program with 20 representative sports organizations of different sports, programming types, and sizes across the country where we monitoring their data so we can share updates on what is leading to them winning or losing chargebacks with the new Visa & Mastercard Covid guidelines. While its always best to avoid a chargeback in the first place we want to make sure we gather clear data on best practices that we can get to you asap. We'll share updates as soon as we have them.
While the virus makes it impossible to accurately project the future we have some updates and best practices based on both what leading sports organizations are doing and based on speculation on what will leading to winning chargebacks within the new Visa & Mastercard Covid 19 refunds guidelines.
If you have any questions or if you think we can be of any help you can book a Conquer Covid strategy meeting with one of our sports business experts here.
Refund & Charge-back Risks Created by Covid 19 & Best Practices Solutions
- Money You've Collected - If you have already collected funds for programs that were interrupted mid way or for programs that have not yet started.
- Future Money to be Collected - The CDC is predicting waves of Covid until their is a vaccine. Many organizations are concerned about collecting money for programs that have not yet started and what type of refund policy can give people confidence while protecting your organization in the event that programs must be cancelled due to future waves of covid and associated quarantines or mandated social distancing measures.
Some Best Practices for a Refund Policy Aligned with the New Visa & Mastercard Covid-19 Guidelines
- Have a Clear refund policy.
- Ensure Your Refund Policy is Clear on Your Website and in Confirmation Emails
- Have template emails for responding to refund requests and be mindful that any correspondence can be used in a chargeback case.
- Have a simple process for issuing credit or replacement programs.
- Download a Copy of Your Governors Order to Quarantine or Limit Sports Activities. Sharing this with chargeback evidence can help you win.
Some Approaches We've Seen to Minimize Refunds
- Be Transparent- Explain your situation to customers. Most will be empathetic and support your organization. You can explain that a strict refund policy for the organization.
- Offer Bonus Credits to Anyone Accepting Credit- If you haven't made it clear in your refund policy that you only provide credit OR if you have someone who is insistent upon a cash refund in spite of your policy, one tactic is to offer 10% bonus credits so they will receive their full credit owed plus an additional 10%. You can also provide free access to online programming or free access to a special program in the future as a thank you for them accepting credit.
What Else Can I Do to Lower My Monthly Costs During Covid ?
Checkout our post on additional cost cutting strategies for sports, fitness, and activity businesses here. You can also join the waitlist for Playbooks $1 Million discount and cashback and grant program here. We can provide your business with up to $25,000 of cash over the next 12 months. As always were monitoring chat and the phones and were always available to help any sports, fitness, or activity business in any way we can . Whether you have questions or want to share your experience you can chat with us or call us anytime. You can also book a strategy session with one of our sports business experts here.