How do I protect myself from subscription traps and billing scams?
Read the full terms before entering card details on any free trial, set a calendar reminder before the trial ends, and use a virtual card number for subscriptions you are uncertain about.
Last reviewed: 10 June 2026
Explanation
Subscription traps work by offering something free or cheap and burying a recurring billing clause in the terms and conditions. By the time you notice the charge — often weeks or months later — you have been billed multiple times, and some services make cancellation deliberately difficult. This is known as a 'negative option' business model, and while the most aggressive versions are illegal under FTC regulations, borderline cases are common.
Before entering your card on any free trial, scroll to the bottom of the page or find the terms and conditions and search for words like 'recurring,' 'automatic,' 'subscription,' and 'cancel.' If the trial converts to a paid subscription and the cancellation process requires a phone call to a number that is only available during restricted hours, that is a deliberate friction tactic. Document the terms with a screenshot dated on the day you sign up.
A virtual card number is a one-time or limited-use card number provided by some banks and services (Capital One Eno, Privacy.com, Revolut) that you can create for a specific subscription and then lock or cancel without affecting your real card. Use one for any free trial you are uncertain about — if the company tries to charge after you cancel, the charge simply fails.
Check your bank and credit card statements monthly for recurring charges you do not recognise. Billing scam variants include a tiny initial charge — sometimes as little as $1.99 — designed to test whether the card is active before larger recurring charges begin. Report undisclosed or deceptive subscription charges to the FTC and your card issuer.
Common red flags
- Free trial requires full credit card details with no clear cancellation terms
- Cancellation process requires a phone call with no online option
- Billing amount in the terms differs from the headline offer
- Small unexplained charge on your statement you do not recognise
- Company is very difficult to contact after you sign up
- Privacy policy or terms not accessible or formatted to discourage reading
What to do now
- Read the billing terms before entering card details on any free trial
- Screenshot the terms on the day you sign up as a record of what you agreed to
- Set a calendar reminder two days before the free trial ends
- Use a virtual card number for uncertain subscriptions so you can cut off billing easily
- Review your bank and card statements monthly for unrecognised recurring charges
- Dispute undisclosed subscriptions with your card issuer and report to the FTC
Frequently asked questions
Can I get a refund on a subscription I was tricked into?
Dispute the charge with your credit card issuer as an unauthorised or deceptive subscription. Many card issuers will side with you if you can show the terms were not clearly disclosed. The FTC has taken enforcement action against companies using particularly deceptive negative-option tactics.
What is a negative-option subscription?
A negative-option subscription is one where inaction counts as agreement to continue — for example, a free trial that converts to paid unless you actively cancel. The FTC's Negative Option Rule requires these terms to be clearly disclosed; any company hiding them in fine print may be in violation.