Trying something new without paying a dime. It sounds like a great way to see if you like a new streaming site, grocery delivery service, or even physical things like magazines and makeup. But like many things, “free” isn’t always exactly that. Unfortunately, you have to sort through potential catches before you hit the “sign up” button and potentially put your money at risk.
Companies may use questionable tactics or count on you forgetting to cancel that trial. They still need to make profits somehow. So, you should understand the common free trial traps and how you can avoid them.
Upfront Payment Info Requests
While annoying for us, it makes sense on the company’s side. After all, they want a credit card or some other payment method on file. If not, they can’t charge you after the trial. I’ve found that companies sometimes also do this to prevent people from doing multiple trials.
It can backfire on you, though. Like many people, I’ve lost money since I forgot to cancel a free trial. I’d prefer skipping the payment info and just losing access. Besides that, handing over payment details to another company isn’t ideal if you’re worried about data breaches.
Sneaky Charges
Be aware there may be fees you don’t notice right upfront. A good example is for trials of physical items. It doesn’t make sense to potentially waste money shipping something you don’t need or like. So, I try to avoid such trial offers.
But online trials can also cost money. One streaming service charged me a weird payment processing fee. I never experienced that with the bigger companies like Netflix or Disney+. Some companies also tack on add-ons and bundles. You’d have to uncheck the options.
Auto-Renewal Tactics
There’s no doubt that auto-renewal makes companies money. Companies know that many people will forget the trial end dates and end up with charges. It’s happened to 48% of people, according to a 2024 CNET survey. You don’t have to become one of them.
Even more frustrating, the subscription might be an annual plan by default. That can mean a much larger charge than you can stomach. I lost $249 last year for a training site. And don’t always expect a reminder before this happens, either.
Annoying Cancellation Steps
Wouldn’t it be nice to click a “cancel” button and not pay? I’ve found that many companies don’t make it that easy, though. You can expect extra steps and maybe even some manipulation.
I’ve had a few frustrating experiences. For one online subscription, I had to go through several screens luring me to stay, including discounts, and a red “confirm cancel” button in a weird location. It was even more frustrating with a physical subscription. I had to call the company and pay to mail the thing back. I regret that one.
Unclear Free Trial Terms
Even if this one doesn’t cost you money, it’s disappointing nonetheless. It sometimes comes in the form of limited features. I encountered this when signing up for a coding site. I thought I had 14 days to work through lessons, do projects, etc. But then I hit a paywall after the second module of a course.
The trial period itself may also not be what you think. You might not get the full two weeks or a month. And, if the company is in a different time zone, you could be in trouble if you miss the deadline.
Potential scams
The Better Business Bureau asserts that some free trials are more like scams. It can start with thinking you’re sampling some vitamins or a beauty product. There’s no risk, right?
While you might think you use the item and cancel, watch out. The seller might ask you to return an unused portion and charge you for shipping. Maybe you were too slow or already used the whole thing. The company might charge you or send more shipments. Scam or not, this is bad for your wallet.
Forgotten Subscriptions
Companies aren’t always trying to get you with free trials. Sometimes, we have so many subscriptions that we simply forget what we’re paying for. And if you’re not careful, you’ll have another monthly charge taking up room in your budget.
I’m guilty of this one, which is why I recommend doing a subscription audit from time to time. Sadly, many people don’t. About 86% of Americans are paying for at least one they’re not using, according to Self Financial. You don’t want to risk signing up for something you won’t even use.
My Tips for Avoiding These Traps
There’s a lot to consider before agreeing to a free trial. Still, I wouldn’t say you should avoid them altogether. Instead, do your research and follow these tips:
- Pause before you sign up. Are you signing up for fun, or do you need that service or product anyway? Give yourself a day or two to decide. You’ll be glad you’ve avoided an impulse purchase.
- Research. A new free trial is exciting, but it’s risky if you don’t know everything you’re signing up for. Are there extra fees? How long does it last? What’s the refund policy? Find all of this out. And skip the free trial if you find concerns.
- Read online reviews. I’ve noticed that customers get loud when they pay hidden fees or have problems canceling a free trial. Read through reviews on the Better Business Bureau and other places, and don’t ignore any red flags. Also, see if the company responds to people’s negative reviews. That shows it may be more transparent.
- Try a virtual card. There are good reasons not to want to share your primary card details right away. See if your card issuer has a virtual card with a spending limit. I like to set the limit very low to be safe in case of an auto-renewal.
- Remind yourself. I recommend setting up more than a calendar notification. Look for an email reminder option for the service to cancel your trial. Even set an alarm on your phone if you have to.
- Cancel ASAP. I liked that Apple Music let me use the service for the full trial period, even after I canceled. If your company doesn’t offer this, still make sure to cancel long enough before your free trial ends.
- Cancel for real. Once you want out, follow through. Long online process, phone calls, packages to ship back, and all. Follow the rules and document everything. And if the company gives you trouble, call your card provider or bank.
Frequently Asked Questions
Are free trials safe?
They can be safe if you sign up with a reputable company. However, it might not be safe for your wallet if you end up paying money somehow.
What happens if I forget to cancel my free trial?
The company will likely charge you for the subscription. Check the company’s refund policy.
Can I get a refund for auto-renewals?
You can try a chargeback. You’ll have more luck if you can prove you canceled already or never agreed in the first place. Don’t be surprised if the company bans you from future orders, though.
What’s with the pre-authorized charge?
The company is probably making sure you provided valid card information. The charge usually disappears within a week.
The information provided on this website is for general informational and educational purposes only and should not be considered financial, investment, legal, or tax advice. While we strive to provide accurate and up-to-date information, we make no guarantees regarding the completeness, reliability, or accuracy of any content. Any financial decisions you make are your responsibility. You should consult with a qualified financial advisor, accountant, or other licensed professional before making decisions based on information found on this site.
Past performance is not indicative of future results. Any examples provided are for illustrative purposes only and may not reflect your individual circumstances. By using this website, you agree that we are not liable for any losses or damages arising from your reliance on the information provided.
Sources:
- https://consumer.ftc.gov/articles/getting-and-out-free-trials-auto-renewals-and-negative-option-subscriptions
- https://consumer.ftc.gov/media/79876
- https://www.cnet.com/personal-finance/subscription-creep-is-real-consumers-are-paying-over-1000-each-year-cnet-survey-finds/#ftag=CAD590a51e
- https://www.bbb.org/all/scamstudies/free_trial_scams/free_trial_scams_full_study
- https://evepaper.com/free-trials/
- https://www.chariotclaims.com/resources/auto-renewal-subscription-traps-consumer-rights
- https://www.self.inc/info/cost-of-unused-paid-subscriptions/
- https://oag.ca.gov/consumers/general/free-trial-offers
- http://mypointcu.com/learn/blog/dont-get-caught-in-a-free-trial-scam
- https://appdevelopermagazine.com/free-trials-have-high-customer-conversion-rate/
