The Hidden Side of Subscription Services
Some popular digital services deliberately direct users through confusing steps to cancel their subscriptions; these designs are called “dark patterns.” According to a study, 48% of users in the US realized later that they were regularly paying for at least one service they didn't actually use. Hulu, Amazon Prime, and some fitness apps have received numerous complaints for switching users to paid trials without their knowledge and automatically charging their cards.
Some apps on the Apple App Store offer a 3-day trial period but start charging an annual fee within just 72 hours if the subscription is not canceled. Some digital services do not automatically delete credit card information after the subscription is canceled; card information can remain in the system for months.
Card Security and Automatic Payments
Most Americans realize that they have services they don't recognize listed as “recurring payments” on their credit card statements months after the fact. Many subscription services redirect users with a message such as “payment failed” and then attempt to charge the same card again a few days later. Some banks allow old subscriptions to be automatically transferred to a new card number even after the card is canceled; this practice typically occurs without notifying the user.
Visa and Mastercard systems use a system called “account updater” to ensure that subscription payments continue uninterrupted even if the old card number changes. This update system can be active even without the user's permission; therefore, the logic of “I will stop the subscription by changing the card” often does not work.
Subscription Traps and Annual Bills
Many apps display the subscription period as monthly but actually charge annually, which only becomes apparent on the bank statement. Some users, trusting the “cancel anytime” statement when signing up, realize too late that they have paid upfront for the first 12 months. While larger services like Netflix and Spotify may seem free for the first month, smaller platforms can charge high amounts starting from the second month, and this difference may go unnoticed.
The US Federal Trade Commission (FTC) receives thousands of complaints each year about “unauthorized renewed subscriptions.” Some e-book and dating apps trick users into thinking they have canceled their subscription by only canceling the “notification” subscription while continuing the payment flow.
User Control Is Weakening
70% of users who make digital payments with multiple cards do not regularly track which card is used for which service. A study in the U.S. found that users have an average of 4.8 active digital subscriptions, but only 2-3 of these are actively used. Subscription cancellation is only possible through the mobile app on some platforms; it cannot be done via the web panel.
Some services attempt to extend the subscription period by offering loyalty discounts to prevent users from canceling, and those who accept these offers often forget to cancel. Banks can reject refund requests in many cases by stating that the payment was initiated with the user's consent, as the service provider considers any click as sufficient proof of user approval.
The Unseen Side of Banking Systems and Card Infrastructure
Some major banks in the US automatically transfer old subscription payments to the new card when a credit card is canceled—the same service is reactivated without the user noticing. The “network tokenization” system allows automatic payment systems to retain identity and connection information even if the card number changes in some payment providers. Some banks do not classify recurring payments as “high-risk,” so even an unfamiliar service can easily charge you.
According to internal bank rules, when requesting a refund, you may be asked to provide a screenshot showing that the subscription was canceled using the “cancel button” — otherwise, the request may be rejected. Even if the bank refunds you, the payment provider may re-charge the amount later, citing “merchant dispute.”
Real User Stories and Fraud-Like Experiences
A US user discovered three months later that a meditation app had silently charged him $179 for an annual fee after he provided his card details for a 7-day trial. A UK resident realized in the sixth month that he had been subscribed to an “extra security service” due to an automatically checked box after a purchase, and had been paying £9.99 monthly. A Canadian user continued to be charged for a video editing app for 14 months even after stopping use, simply because the “auto-renewal” option remained enabled.
Some corporate software starts charging personal cards for trial subscriptions initiated via work emails because the system tracks the user, not the card. A user discovered that a video education platform continued to charge a new card for four months after canceling it—because the card provider had a policy to “maintain the payment chain.”
Situations That Appear Secure but Work in Reverse
Some sites do not ask users for their CVC (3-digit security code) for security reasons — this is actually a deliberate choice to speed up collection. Secure-looking “Verified by Visa” or “3D Secure” screens are not always mandatory; some subscription payments can be processed quickly without these steps. Some platforms claim to offer an “encrypted card storage system,” but this storage is handled by third-party companies — which may be located in different countries with much more lenient data laws.
Users who use both physical and digital cards at the same time may not be able to clearly see which card was charged in some systems because banks use “combined viewing.”
Strategic Tactics for Secure Use
Using a separate, low-limit virtual card for digital subscriptions is an effective way to limit potential overspending. Some banks in the US offer single-use “burner card numbers” for each payment—this system allows different cards to be assigned to each subscription, making tracking easier. Setting a time limit on virtual cards (e.g., 30 days) is effective in preventing automatic renewal traps.
Some fintech apps allow you to consolidate all your subscriptions into a single dashboard for easier management; services like Truebill, Rocket Money, and Hiatus are specifically designed for this purpose. Regularly checking the “subscriptions” section on iOS and Android devices is crucial to prevent in-app purchases from being charged silently. Taking a screenshot after canceling a subscription and saving it with the date and time is the most valid evidence in case of a bank dispute.
The Billion-Dollar Subscription Mistake
In the US, it is estimated that users spent a total of $17 billion in 2022 alone on subscriptions they forgot to cancel or paid for without realizing it. Approximately 60% of these payments were made for services that users either did not actively use or had completely forgotten about. Some financial advisory firms report that users spend an average of $300 to $500 per year on “shadow subscriptions.”
These payments are referred to as “zombie subscriptions” — automatic charges that users think they have canceled or have completely forgotten about. Fintech companies say that the losses arising from this system have serious implications not only at the individual level but also for financial stability and user confidence.
Invisible Agreements Between Card Networks and Service Providers
Major card networks like Visa, Mastercard, and American Express offer special APIs to subscription services to ensure “card continuity.” These systems automatically notify the service provider of a new card number even if the card number changes — without informing the user. For example, large companies like Amazon, Netflix, and Adobe use these systems to continue charging users without interrupting their subscriptions.
Thanks to these agreements, the payment provider “reduces loss,” but the user is charged again for a service they thought they had canceled. Some payment infrastructure providers (e.g., Stripe, Braintree) offer platforms special incentives for “subscription continuity,” which can increase user harm.
Legal Gray Areas and Lack of Oversight
While many countries' consumer laws include the “easy subscription – easy cancellation” principle, there is often no effective mechanism to enforce it. While the FTC in the US regulates such services, small-scale apps and mobile services often manage to evade the system's radar. Some apps use methods such as “hidden checkboxes,” “page transitions that shorten the timeframe,” and “delayed confirmation after cancellation” to mislead users without crossing legal boundaries.
Most user complaints made in app stores (App Store, Google Play) go unresolved because users are only given the right to leave a review, not a refund. User agreements are often long and complex; many people simply click “accept” without reading the subscription terms — companies know this and hide the gray areas here.
Real Security = User Awareness
Despite advanced security systems, the most critical role in card security begins and ends with the user. When using subscription services, it is essential to be cautious not only when entering card information but also when exiting—as the primary cost arises from forgetting to cancel. Each new card information entry could potentially mean an annual payment; the user is drawn into the system by saying, “I'll try it.”
Relying on manual checks of card statements or enabling notifications is insufficient, as many charges go unnoticed due to their low value. Ultimately, true security isn't achieved through passwords or two-factor authentication alone; it begins with financial awareness.