Negative Option Billing Merchant Account

A negative option billing merchant account provides trial nutraceutical companies with the ability to accept credit card payments. Due to the high amount of chargebacks in this billing model, negative option is considered high risk. Nonetheless, there are many payment processing options available for companies who utilize it, including high risk merchant accounts.

What Is Negative Option Billing?

Negative option billing is a method of charging customers for purchases by continuing to bill them if they don’t decline the ongoing charge. For example, if you order a free trial of a vitamin supplement and give your credit card information with the intention of triggering a purchase if you keep the item.

A main distinction with this type of purchase is that the customer has to take action in order to stop payment. In addition, they are often given a product or service for free so psychologically it may feel as if they’re going to not have to pay. often occur when the customer forgets to cancel payment and doesn’t receive a refund when they request one.