The latest release (October 2009) of direct bill upgrades from AT&T includes some changes to the way that refunds are handled back to the end user from a subscription service.
With this new release, refund amounts will be pro-rated to the date of the refund taking into consideration the amount of time that has been used up by the end user. This method is a more equitable way in which to agree to issue refunds for all parties involved.
This increases the revenue that a Content Provider receives as the user pays for the time that they used the subscription before they requested a refund. Currently a user who is granted a refund receives the full amount back, regardless of how much time is remaining on the subscription.
We believe this will pave the way for more control over the management of refunds, including identifying serial refunded subscribers, and eventually more integrated notification of refunds to reduce “double-dipping” by some subscribers.
We will issue you a further update as soon as we have a “go live” date for this new feature and Bango will run some reports to identify the impact this new capability – the policy behind it – has on revenue loss through refunds.