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Thread: Prepayment/Cancellation Policy

  1. #1
    Join Date
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    Default Prepayment/Cancellation Policy

    We’ve had an influx of “save my number” porting requests in the last 2 weeks or so and as a result lots of people asking for clarification on pricing and policies after BETA. One of the biggest questions is regarding prepayment/cancellation penalties.

    Here is the official policy on prepayment cancellation:

    If you prepay for a specific term and cancel during that term, you will be billed for the number of months you used at the “best” rate you qualified for with that time period. This is done instead of a penalty/fee.

    Example: You prepaid for 12 months at the yearly price. You cancel after 2 months. To calculate your refund, we would credit your full 12 month payment to your VOIPo balance, then debit your balance for 2 months of service at the monthly rate.

    If the number of months you used goes into a plan unevenly, the extra months will just be prorated.

    If the resulting refund is “negative”, the refund would just be $0. You would not be charged extra. This is only to calculate refunds.

    Example: You prepaid for 12 months at the yearly price. You cancel after 8 months. To calculate your refund, we would credit your full 12 month payment to your VOIPo balance, then debit your balance for 8 months of service at the 6 month rate (broken down monthly). This is done because 6 months would be the best available plan you’d qualify for with 8 months.

    I think this is a “common sense” approach to this and is fair for everyone.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  2. #2
    Join Date
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    Default Re: Prepayment/Cancellation Policy

    That sounds more than fair.
    And allows you to get a sensible formula for billing.

    Are you going to muddy it with all the TAX numbers too?
    (Or is all that in your price already?)


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  3. #3
    Join Date
    Feb 2007
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    801

    Default Re: Prepayment/Cancellation Policy

    That's a good question, IMO. Any tax that's based on a percentage amount would change if the price paid per month changes, so a simple refund of "(# months unused) x rate" might not apply. Therefore, it's conceivable that tax owed could eat into a service refund, but if voipo will not do any kind of balance billing (as in the cancel after 8 months example above), there will never be a situation wherein the customer OR voipo will owe a tax balance at the end of the day.

    I'm not a tax lawyer, but I would think voipo would HAVE to figure the taxes into the refund, if they want to remain compliant with tax laws...

  4. #4
    Join Date
    Feb 2007
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    280

    Default Re: Prepayment/Cancellation Policy

    Quote Originally Posted by fisamo View Post
    ... but I would think voipo would HAVE to figure the taxes into the refund, if they want to remain compliant with tax laws...
    Pretty sure that taxes would have to be charged on the 'corrected' amount billed for service to date. It could very well eat into the amount refunded since they did not qualify for the reduced fare.
    Last edited by gbh2o; 03-31-2008 at 09:18 PM.

  5. #5
    Join Date
    Feb 2007
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    801

    Default Re: Prepayment/Cancellation Policy

    Agreed. That's what I meant to say, but didn't say quite so clearly.

  6. #6
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    Default Re: Prepayment/Cancellation Policy

    Quote Originally Posted by VOIPoTim View Post
    We’ve had an influx of “save my number” porting requests in the last 2 weeks or so...
    Just as an update to this, ports have been going very smoothly. Welcome to those of you who have ported in this week. I know we had a whole batch that completed yesterday with no problems that I know of.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  7. #7
    Join Date
    Feb 2007
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    Default Re: Prepayment/Cancellation Policy

    My port completed Tuesday and was problem-free

  8. #8
    Join Date
    Mar 2007
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    190

    Default Re: Prepayment/Cancellation Policy

    Can one ask where all these people are porting in from

  9. #9
    Join Date
    Feb 2007
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    Default Re: Prepayment/Cancellation Policy

    Quote Originally Posted by quattrohead View Post
    Can one ask where all these people are porting in from
    Most of them are coming from ViaTalk.

    I know the patent case and DSLR affiliate issues have been a big cause of concern for several. Others didn't really offer an explanation, just asked to port.
    Timothy Dick
    Founder/CEO
    VOIPo.com

    Interact with VOIPo: Twitter, Facebook

  10. #10
    Join Date
    Mar 2007
    Posts
    190

    Default Re: Prepayment/Cancellation Policy

    Yeah, that's what I figured.
    The bad publicity is starting to take it's toll on VT.
    Shame really, but you have to provide service to end users.

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