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Glossary

Free Trial

By Jessica VelascoNo Comments

DEFINITION

Free Trial

Glossary  /  Free Trial

A free trial is a promotional model where customers can use a product or service at no cost for a limited time. After the trial ends, they are automatically billed unless they cancel. While this model supports customer acquisition, it can lead to complaints and chargebacks if cancellation terms aren’t clear. Card networks (Mastercard, Visa, etc.) require that merchants disclose trial terms upfront, including pricing and duration.

Many chargebacks labeled as “unauthorized” are actually linked to poor trial communication. Getting your disclosure and reminder practices right is key to maintaining trust and avoiding disputes. If you offer a free trial, you’ll need to document opt-in dates, send reminders before billing, and clearly explain how to cancel. AltoPay provides support for free trial billing logic and helps track trial-to-subscription transitions.

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Jessica Velasco

For more than a decade, Jessica Velasco has been a thought leader in the payments industry. She aims to provide readers with valuable, easy-to-understand resources.

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