Negative Option (Collecting a credit card at free-trial signup time)
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Negative Option (Collecting a credit card at free-trial signup time)
1–10 of 19 posts
Re: Negative Option (Collecting a credit card at free-trial signup time)
#2I hate when services I really want (many hacker news types of businesses for instance) do not let me give a Credit Card up front. I mean sure: Credit me a free month of service. But damn, don't make me give you one 30 days later if I want to provide one now.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#3Personally, I think that any business model that relies on your customers forgetting to cancel your service is fundamentally flawed and consumer-unfriendly. And let's face it, that's what you're doing when you use Negative Option billing, even if you provide all the disclosure in the world up front. If I love a service, I'll sign up for it after the free trial.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#4I hate when services I really want (many hacker news types of businesses for instance) do not let me give a Credit Card up front. I mean sure: Credit me a free month of service. But damn, don't make me give you one 30 days later if I want to provide one now.
Sounds like they're mixing up Free Trial with Sign Up Now. Free Trial: I want to try this and I'll pay if I like it. Sign Up Now: I already like it and want to start immediately.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#5Personally, I think that any business model that relies on your customers forgetting to cancel your service is fundamentally flawed and consumer-unfriendly. And let's face it, that's what you're doing when you use Negative Option billing, even if you provide all the disclosure in the world up front. If I love a service, I'll sign up for it after the free trial.
37signals does this, iirc... Do you think they're consumer unfriendly and, dare I say it, evil?
Re: Negative Option (Collecting a credit card at free-trial signup time)
#6Personally, I think that any business model that relies on your customers forgetting to cancel your service is fundamentally flawed and consumer-unfriendly. And let's face it, that's what you're doing when you use Negative Option billing, even if you provide all the disclosure in the world up front. If I love a service, I'll sign up for it after the free trial.
37signals does this, iirc... Do you think they're consumer unfriendly and, dare I say it, evil?
That they do this is consumer unfriendly. As far as the evil of the overall organization, I'm not really qualified to say. I've never done business with them.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#7The problem is that "1 month free trial" != "30 day money back guarantee" and many companies conflate the two.
If there is a 1 month free trial, then you shouldn't be billing a credit card upon sign up (whether you take it up front or not is a separate issue). Billing the customer and then offering to refund within the month if they don't like the service is not a free trial.
Offering a 30 day money back guarantee seems the most sensible for most SaaS plays IMHO. If someone likes your service, they should be happy to pay even for the first month. If they didn't like it, then they get their money back. Seems reasonable enough.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#8Personally, I think that any business model that relies on your customers forgetting to cancel your service is fundamentally flawed and consumer-unfriendly. And let's face it, that's what you're doing when you use Negative Option billing, even if you provide all the disclosure in the world up front. If I love a service, I'll sign up for it after the free trial.
37signals does this, iirc... Do you think they're consumer unfriendly and, dare I say it, evil?
so does "Don't be Evil" company (for Apps for Business product at least)...
so does Apple (for Me.com)...
etc. etc.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#9Personally, I think that any business model that relies on your customers forgetting to cancel your service is fundamentally flawed and consumer-unfriendly. And let's face it, that's what you're doing when you use Negative Option billing, even if you provide all the disclosure in the world up front. If I love a service, I'll sign up for it after the free trial.
37signals does this, iirc... Do you think they're consumer unfriendly and, dare I say it, evil?
37signals offers a 30-day free trial for paid plans, but clearly states: "If you cancel a paying plan within 30 days of signing up you won't be charged a thing. We'll send you an email 5 days before your first charge to remind you."
In addition they also offer FREE plans for their services - which require no CC at sign-up and allow you to upgrade at any time.
Edit: Any comments on the downvotes would be helpful as I was just trying to supply more detailed information on the actual process being discussed.
Re: Negative Option (Collecting a credit card at free-trial signup time)
#10The problem is that "1 month free trial" != "30 day money back guarantee" and many companies conflate the two. If there is a 1 month free trial, then you shouldn't be billing a credit card upon sign up (whether you take it up front or not is a separate issue). Billing the customer and then offering to refund within the month if they don't like the service is not a free trial. Offering a 30 day money back guarantee se…
I agree completely.
I think one reason companies charge you the money immediately (for the "1 month trial") is to test out the credit card. I know some companies that charge a cent (or something) then refunds that to verify that the credit card is valid.