Part 3: Fewer refunds. But are you keeping more money? 💳

Part 3: Fewer refunds. But are you keeping more money? 💳 For subscriptions with trials, pre-authorisation can eliminate unnecessary refunds. Instead of charging upfront, you place a hold on the funds. If the customer cancels before capture, you release the hold. No refund needed. But once you capture the payment, the customer can still request a refund or dispute the charge. Pre-authorisation won’t fix unclear subscription terms. There are trade-offs. Verifying a card isn’t the same as reserving the full amount, and the hold can expire before the trial ends. Meanwhile, the customer sees unavailable funds and asks: “Why was I charged for a free trial?” 📊 Refund rate alone won’t tell you whether the test worked. You might get fewer refunds simply because fewer people reached payment. Compare the money left after refunds, disputes and variable costs per user assigned to each test group, including those who failed authorisation. Then check renewals. Fewer refunds don’t necessarily mean better economics.