Chargeback

Chargebacks at boutique studios usually fall into three buckets. Forgotten auto-renew: a member meant to cancel, didn't, and disputes the next month's charge instead of asking for a refund. Bad cancel UX: the member tried to cancel and the studio's process was unclear or required calling during business hours. Real fraud: a stolen card was used; rare in fitness.

Chargebacks cost more than the charge itself. The processor (Stripe, Square) typically charges a $15–25 dispute fee whether you win or lose. The studio also temporarily loses the original amount during the dispute window (30–90 days). Win or lose, your processor sees the dispute on your account — too many of them and they can raise your rates or terminate the merchant agreement.

Prevention beats winning disputes. Three operational fixes drop chargeback rate to near zero. First: a frictionless self-serve cancel — a button in the member portal, not a phone call. Second: a clear pre-billing notification (email or push 3 days before each renewal). Third: a friendly refund policy for the rare case where a member missed the cancel window by a day or two. Refunding $189 is cheaper than fighting a chargeback for $189 plus a $20 fee.

When a chargeback does land, respond fast. Most processors give you 7–14 days to submit evidence (signed waiver, attendance history showing the member used the membership, cancellation policy from your website). A documented response wins more often than not, but never assume — the dispute economics tilt toward the cardholder.