$75k in dodgy subscription payments blocked each day - Westpac
The businesses involved aren't necessarily acting fraudulently because they often disclose details in the fine print - but that can be hard for customers to access.
Westpac reports that subscription traps continue to deceive online shoppers, blocking more than $75,000 in unwanted charges daily. Last year, the bank stopped over $25 million in such charges with a new payment block system, designed to prevent overseas websites from prompting customers to sign up for ongoing subscriptions without their knowledge.
Head of customer care operations Peter Barnes revealed that businesses involved in these practices may not be acting fraudulently, as their terms are often buried in fine print. However, customers may struggle to access this information when signing up for services. The issue becomes more complex when these subscription traps move quickly between jurisdictions, making it difficult to track and stop them.
Most customers who spot subscription problems are those who regularly check their statements and notice unexpected transactions. Barnes advised customers to be wary of discounts that require quick action, as they often lead to traps. He emphasized the importance of reviewing transaction histories and contacting the bank immediately if issues arise.
The bank also noted that some digital subscription services and e-commerce sites mislead shoppers by portraying themselves as New Zealand-based, even without a local presence. Barnes suggested that people should watch their transaction history closely and act swiftly if they notice anything suspicious.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
