To Payment industry experts: Let's say I paid for Netflix subscription using my cc. The only way to cancel is go to Netflix and cancel my plan. 1.I am wondering if the current payment regulations allow only the merchant to control the contract. Is it feasible the cc or bank ppl can cancel on my behalf? Pardon me if the terminology is wrong. 2. Where can I find the guidelines or rules if I am planning to build a payment gateway?
If you are in Europe you can call bank and they can cancel your recurring sub. That signal gets passed back through to merchant via processor and your account is cancelled.
I don’t think it would be possible. Specially when account has multiple subscriptions. In this case, system would create one single payment object every month for all the subscriptions in a user account. It will not be possible to selectively cancel one single subscription from bank side just on the basis of payment id. Currently Customers can dispute the transaction by notifying bank if they do not agree with charge. There can be various reasons like Product not satisfactory, Product not received, Fraud etc. so once merchant gets this dispute from bank, merchant would close account completely (cancel all subs) and writeoff earlier collected money from the books. Or if merchant has proof that they have provided service properly, they will provide proof and dispute the dispute.
Thanks for the reply. But I am mainly concerned if the bank or the user has the authority without merchant's consent
I don’t think bank or user has authority. User can dispute the transaction with help of bank. But if merchant provides sufficient proof for service offered properly, merchant can win dispute and get back full amount.