england-and-wales terms-of-service consumer-protection service
UK - Refunds on digital services
<p>I'm currently working on a business as a sole trader providing scalable servers to clients, they are billed monthly.</p>

<p>I'm aware the consumer rights act also affects digital goods, so whats to stop people from using my service for 14 days and then asking for a full refund? As these servers cost money to maintain, I have the potential to lose money on this, which could cripple my business if done enough.</p>

<p>Is there a terms of service clause/refund policy or somthing I can use in order to protect myself from losing money due to this? How do other companies get around this?</p>

<p>See this UK government site: </p>

<p><a href="https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services" rel="nofollow noreferrer">https://www.gov.uk/government/publications/cancelling-goods-or-services-guide-for-consumers/cancelling-goods-or-services</a></p>

<p>It is aimed at consumers. It says that cancellation fees must be fair, and that you (as a consumer) can't expect all your money back. </p>

<p>Now if I order a service today (Jan 26th) to start at March 1st, you'll have to refund me if I cancel before Feb. 10th. But if I order the service today to start today, and I use it, then you can include in the contract that you will charge for every day that the service is used (and cost you money). </p>

<p>And all that is consumer law. Doesn't apply to business customers. For business customers, the signed contract is what counts (except in rather extreme situations). </p>
