Legal ramifications for auto-charging credit card for online subscription?
Darryl W asked:
Hello,
Hello,
A client of mine has launched an online subscription service. Customers are paying online with their credit card but their advert/listing is only for one year.
When the customer’s listing expires in one year can we just run the credit card through again to auto renew the subscription?
At this time our Terms Agreements do not mention auto-renewal. Even if they did does anyone know what the legal ramifications might be if we did this?
My client is thinking that, from a business point of view, it may be better to ‘ask for forgiveness than permission’, and collect the money up front. If you give customers too much time to think about it they may decide to not renew.
Thanks
get a credit card online
Tags: Business Point, Hello, Legal Ramifications
October 18th, 2009 at 4:41 am
get a credit card online
You’re looking to be taken to court for fraud.
October 21st, 2009 at 8:59 am
get a credit card online
Wow, that is incredibly sketchy. How would your client feel if he – as a small business – were charged without knowing it for an online subscription? Would be be willing to work with them again if they just said sorry after the fact?
It is illegal to auto-renew and auto-charge without a clients’ permission. Not only should it be outlined in the terms and conditions, but just to completely cover himself, he should have customers specifically sign/initial/check that part of the agreement.
If he wants to keep his customer base, he doesn’t need to try to pull a fast one on his customers.
January 16th, 2011 at 11:56 pm
MOST INFORMATIVE SITE FOR ELECTRONICS….
**YOUTUBE VIDEO REVIEWS ON THE HOTTEST ELECTRONICS OUT**…