Yes. There are a few advantages to offering a money-back guarantee for your product. Especially for a one-time digital purchase:
- As you correctly assume, conversions will be higher with a money-back guarantee than without (although you do have to make it obvious that there is one in your marketing)
- More importantly, unhappy customers will get their money back either way. If you don't offer a refund, you'll just have customers making charge-backs via their credit card provider. These chargebacks are pretty much impossible to combat for digital products, and can cost you $15-$100+ on top of the refund per chargeback.
Even worse, too many chargebacks can lead to your payment processor freezing/closing your account.
> customers making charge-backs via their credit card provider. These chargebacks are pretty much impossible to combat for digital products
It's not impossible. Companies such as Chargebacks911 worked with Clickbank which is an affiliate program selling digital content to reduce their chargebacks quite significantly.
More information here: [0].
Some credit card companies are now electing to work with both Kount and CB911 into their stack.
Disclaimer: I don't work with either company but spent the last 2 years looking at the whole fintech stack for my startup and know (almost) all the players in the space.
- As you correctly assume, conversions will be higher with a money-back guarantee than without (although you do have to make it obvious that there is one in your marketing)
- More importantly, unhappy customers will get their money back either way. If you don't offer a refund, you'll just have customers making charge-backs via their credit card provider. These chargebacks are pretty much impossible to combat for digital products, and can cost you $15-$100+ on top of the refund per chargeback.
Even worse, too many chargebacks can lead to your payment processor freezing/closing your account.