Guide to Negative Option Billing

There are good reasons to offer different billing options for a service. Creating accessible payment plans for the budget-conscious, for example, while offering savings to customers willing to make a larger up-front investment. Sometimes, the billing plan itself is part of the sales pitch, like a free trial or bonus offer that’s too good to pass up.

When the catch is that accepting the offer locks the customer into recurring billings that must be explicitly opted out of, that’s negative option billing, and it can be a frequent source of disputes. What do merchants need to know about using negative option billing?

The history of negative option billing predates the era of ecommerce, and it has never enjoyed a particularly good reputation among consumers, despite the fact that the book-of-the-month and mail-order record clubs that relied on negative option billing offers used to be fairly popular.

Full Text:
https://www.chargebackgurus.com/blog/negative-option-billing

©Chargeback Gurus 2021
Production: Emily Woodward
Narration: Sarah Rife