Negative option billing is a billing method where customers are automatically enrolled into a paid subscription unless they actively cancel. Negative option billing is commonly implemented after a free trial or promotional period. This model is used widely across digital services, subscription boxes, and membership platforms.
Card networks heavily regulate businesses that use negative option billing and require clear disclosures, opt-in consent, and reminder notices for upcoming charges. If you use negative option billing, compliance is critical.
Negative option billing can cause higher-than-normal chargeback activity. It’s important to put processes in place to carefully monitor risk.
AltoPay is willing and able to serve merchants with negative option billing models. Our team can also help you optimise this sales process by offering suggestions on how to transparently communicate with customers, when to send communications, and how to manage disputes
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.
