Refund & Credit Traps: What to Watch For
Many services claim to offer refunds, but the fine print tells a different story.
1. Absolute No-Refund Policy
Look for: "All sales are final. No refunds."
The trap: Applies even if service is never delivered, unusable, or company terminates wrongfully.
2. The Pro-Rata Trap
Look for: "Cancellation takes effect at end of current billing period."
The trap: Cancel day 1 of a 30-day cycle = lose the entire month. On annual, lose 11 months.
3. Refund Processing Fee
Look for: "Refunds subject to a $25 processing fee."
The trap: On a $30 subscription, you get $5 back. 83% retention rate for the company.
4. Time-Limited Refund Window
Look for: "Must request refund within 14 days."
The trap: Under 14 days = concerning. Under 7 = hostile.
5. Credits Instead of Refunds
Look for: "Refunds will be issued as account credit."
The trap: That's forced loyalty. Your money is trapped with the same company.