Negative-option Billing: New Card Brand Rules and Regulatory Actions

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Negative-option billing, also known as continuity marketing, is a deceptive approach to ensnaring consumers in ongoing subscriptions without their express consent. In light of this heightened regulatory scrutiny, as well as recent changes to Mastercard’s standards regarding the registration of negative-option merchants, LegitScript is highlighting this area as an emerging threat in the payments industry.

Our 11-page guide discusses important topics about negative-option billing, including:

  • How negative-option billing works
  • Comparing fraudulent and legitimate subscription models
  • Negative-option red flags
  • FTC actions against negative-option billing merchants
  • New card brand rules around negative-option billing

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