Configuring Pre-Alerts for All Automatic Subscription Renewals
I can’t be the only person to have parted with hundreds of dollars over the years because I forgot to cancel the service at the end of the free trial (hello Skillshare) or let the subscription drag out in the hopes that I can use the product.
Mastercard recently announced that it will require companies to obtain authorization from customers to bill for recurring subscriptions at the end of the trial period. Merchants will also be required to send an email or text message receipt for each subsequent billing cycle, along with cancellation instructions. The bank statement will list the seller’s website or store phone number with each charge.
The initial announcement did not clarify that the service only covers physical products, such as monthly vitamin subscriptions and skincare sample boxes. Mastercard will not require merchants offering digital subscriptions like Netflix (and Skillshare) to notify customers or send receipts.
A Mastercard spokesman told The Verge that the difference is due to the “fuzziness” of medical supplies. And of course it won’t help you if you start charging subscription fees with your Visa or Amex card.
For anything that doesn’t qualify, treat auto-renewal services like a “free” trial of the product: set a calendar reminder as soon as you sign up so you can decide in advance if you really want to pay for an additional month ( or year).
If you’ve lost track of what you’ve signed up for and when your subscriptions renew, you can also use a budget app to help you. Truebill, for example, shows you monthly recurring payments in a single list, including payment dates and amounts, and you can unsubscribe right from the app. (Of course, Truebill itself requires a paid subscription.) Trim offers a similar service via text messages or Facebook.
Another variant? If you only want to use the product or service as a trial, cancel it as soon as you register. Some subscriptions will allow you to keep access until the end of the trial period or, if you have already been billed and cannot receive a refund (again, Skillshare), until the end of the paid period.