Negative-option Billing

Risky Merchant Behaviors and Tactics

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With the rising prominence of the online marketplace and growing competition between sellers, merchants constantly battle each other to attract and win over bargain-hungry consumers searching for deep discounts. Although most merchants advertise in a transparent manner to capture sales, some lure consumers through deceptive, too-good-to-be-true offers in an attempt to ensnare them in negative-option billing schemes without their express consent or awareness.

As this practice continues to pose considerable risk for chargebacks and regulatory scrutiny, merchants are developing new measures to evade detection and obfuscate the nature of their accounts altogether. In this guide, LegitScript experts:

  • Explain negative-option billing and describe problematic merchants
  • Shed light on how to identify problematic practices and tactics
  • Provide helpful tips to help payment service providers minimize risk

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