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One-in-three consumers have cancelled subscription due to billing issues

Payment issues are the number one reason for consumers canceling their subscription service.

That’s according to new data from payment processing platform Solidgate, which revealed that one-in-four consumers surveyed have had upsetting unexpected charges from a subscription service, and 80% wouldn’t recommend a subscription service to a friend if they had trouble canceling it. A third of consumers said they canceled a subscription service in the last year due to billing frustrations.

[READ MORE: Federal government streamlines subscription cancelation]

Seven-in-10 consumers said they would give up a subscription service if they had problems processing their payments. Just over half of respondents (51%) said they felt businesses did not give enough time before canceling a customer’s subscription due to payment issues, suggesting that some businesses may be canceling memberships too early.

“Our research reveals the delicate balance between challenges and opportunities in the subscription economy,” said Yuri Alekseev, CEO and co-founder at Solidgate. “While subscriptions are a convenient model, even the slightest payment issues can quickly erode customers’ trust and loyalty. What’s more, businesses might not even know they are making these mistakes.”