Bank says it blocks $75k in dodgy subscription payments a day
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 has reported that it has blocked over $40 million in unwanted subscription payments in the past year, with an average of more than $75,000 blocked daily. The bank is concerned about the practice of overseas websites tricking online shoppers into signing up for recurring payments without their knowledge. Westpac's head of customer care operations, Peter Barnes, noted that while these businesses may not be acting fraudulently due to clear disclosures in their fine print, many customers find it difficult to access this information.
Barnes believes the companies' money-making model is unethical. Customers often fail to read the fine print when signing up for services, and the companies behind these subscription traps frequently shift locations, making it challenging to track them down. Most customers who detect a problem with a subscription are those who regularly review their statements and notice unexpected transactions.
Subscriptions, such as AI meal plans or training programs, are frequently the culprits. Barnes advises customers to check their transaction history closely and contact the bank immediately if they have any concerns. He also warns shoppers to be cautious of offers that appear to be quick discounts, as they often lead to unwanted subscriptions.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — it may contain errors, so check the original before relying on it.
