Consumer glossary

The words companies use — and the tricks they describe — in plain English.

A

Auto-renewal: A setting that makes a subscription or contract start a new term automatically when the current one ends, charging you again without a new sign-up. Auto-renewal is legal, but federal and state rules generally require businesses to explain it clearly and get your consent first. Turning off auto-renewal before the renewal date usually stops the next charge while letting you keep access until the paid period ends. Read: Your Rights With Automatic Renewals →

B

Bait and switch: A sales tactic where a business advertises an attractive product or price to draw you in, then says it is unavailable and pushes you toward something more expensive. The advertised deal may never have been meant to be sold. If an advertised item is suddenly gone, ask whether the same price applies to a similar item, and consider reporting ads that seem designed to mislead. Read: Dark Patterns: Design Tricks That Push You to Spend →
Billing cycle: The regular stretch of time between charges for a subscription, bill, or credit card statement, such as a month or a year. Your billing cycle sets when you are charged, when your access renews, and often the last day you can cancel to avoid the next charge. Knowing each cycle helps you time cancellations and spot charges that seem out of place. Read: How to Do a Subscription Audit →

C

Cancellation fee: A charge some businesses add when you end a service, membership, or reservation. It may be a flat amount or depend on how much time is left on your agreement. Cancellation fees should be explained in the terms before you sign up. Before you cancel, check the terms or ask the company whether a fee applies, and get the answer in writing. Read: How to Cancel a Subscription →
Chargeback: The reversal of a card payment that happens after you dispute a charge with your card issuer and the issuer decides in your favor. The money is taken back from the merchant and returned to your account. Card issuers usually expect you to try to fix the problem with the merchant first, and they have time limits for filing a dispute. Read: How to Dispute a Charge →
Confirmshaming: A design trick that uses guilt or embarrassment to steer your choice. For example, the button to decline an offer might say something like "No thanks, I don't like saving money." The wording is meant to make saying no feel foolish. It is a type of dark pattern. You can simply ignore the tone and choose the option that fits your needs. Read: Dark Patterns: Design Tricks That Push You to Spend →
Consent: Your clear agreement to something, such as being charged on a recurring basis. For subscriptions, consent generally means you were told the important terms, like the price and how to cancel, and then took a clear action to agree. A pre-checked box or a hidden term is not the same as clear, informed agreement. Laws like ROSCA require express informed consent for many online subscriptions. Read: Your Rights With Automatic Renewals →
Convenience fee: An extra charge for paying a certain way, such as online, by phone, or by card, instead of another way the business accepts. Convenience fees are common on bills, tickets, and government payments. Rules about them vary by state and by the type of payment. Check whether another payment method avoids the fee before you pay. Read: Hidden Fees and Junk Fees: What to Watch For →

D

Dark pattern: A website or app design that tricks or pressures you into doing something you might not otherwise choose, such as buying more, sharing data, or staying subscribed. Examples include hidden costs, confusing buttons, pre-checked boxes, and cancel options that are hard to find. The FTC has taken action against some of these practices. Slowing down and reading each screen carefully helps you avoid them. Read: Dark Patterns: Design Tricks That Push You to Spend →
Drip pricing: A pricing practice where a business advertises one price and then adds required fees bit by bit as you move through checkout. By the time you see the full cost, you may have already spent time choosing and feel committed. The FTC's fee rule requires the total price up front for live-event tickets and short-term lodging. Always check the final total before paying. Read: Hidden Fees and Junk Fees: What to Watch For →

E

Early termination fee: A charge for ending a contract before its term is over, common with phone, internet, and some service plans. The amount may be fixed or may shrink as the contract goes on. Look for this fee before signing a contract or accepting a deal that adds a new one, and ask how much it would be if you left early. Read: How to Negotiate Lower Bills →
Electronic Fund Transfer Act: A federal law that protects you when money moves electronically from your bank account, such as debit card purchases, ATM withdrawals, and automatic payments. It gives you the right to dispute errors, generally within 60 days after your statement is sent, and limits how much you can lose from unauthorized transfers if you report them promptly. It also lets you stop preauthorized recurring transfers from your account. Read: How to Dispute a Charge →

F

Fair Credit Billing Act: A federal law that lets you dispute billing errors on credit cards and similar credit accounts, such as charges you did not make or goods you did not receive. You generally must send a written dispute to the card issuer within 60 days after the statement with the error was sent. The issuer must investigate, and you may withhold payment of the disputed amount while it does. Read: How to Dispute a Charge →
Fake urgency: Pressure to buy right now that is not based on a real deadline, such as a countdown clock that restarts or a sale that never actually ends. The goal is to rush you so you do not compare prices or think it over. When you feel pushed by a timer or warning, slow down, close the page, and come back later to see if the offer is still there. Read: Dark Patterns: Design Tricks That Push You to Spend →
False scarcity: A claim that a product is almost sold out or in high demand when that is not true, such as "only 2 left" or "10 people are looking at this." The message is meant to make you buy quickly out of fear of missing out. Real limited stock does exist, so treat these messages with caution and decide based on whether you actually need the item. Read: Dark Patterns: Design Tricks That Push You to Spend →
Family sharing: A feature offered by app stores and some services that lets members of a household share purchases or subscriptions under one organizer. The organizer's payment method is often charged for family members' purchases. Many family sharing setups let the organizer require approval before children buy anything. Review who is in your family group and what each person can buy. Read: How to Get an App Store Refund →
Free trial: A period when you can use a product or service without paying, often for a few days to a month. Many free trials require a card and turn into paid subscriptions automatically unless you cancel before the trial ends. Before signing up, check the price after the trial, how to cancel, and the exact end date, then set a reminder a few days earlier. Read: Free Trial Traps and How to Avoid Them →
Freemium: A business model where the basic version of an app or service is free, but extra features, more storage, or removing ads costs money. Freemium products can be a good deal if the free version meets your needs. Watch for frequent upgrade prompts, and compare the paid tier's price with what you will actually use before upgrading. Read: How to Spot an Overpriced App →

I

In-app purchase: Something you buy inside an app after you download it, such as extra features, game items, or a subscription. In-app purchases are often billed through your app store account. Many devices let you require a password or parental approval for each purchase, which helps prevent surprise charges, especially from children. Read: How to Get an App Store Refund →
Introductory price: A lower price offered for a limited time to new customers, after which the regular, usually higher, price applies. Introductory prices are common for internet, streaming, and software plans. Before you sign up, find out how long the low price lasts, what the regular price will be, and whether you will be notified before it changes. Read: What to Do When a Subscription Raises Its Price →

J

Junk fee: An informal term for an extra charge that is hidden, unexpected, or offers little or no real value for its price. Junk fees are often revealed late in checkout or buried on a bill. Examples can include certain service, processing, or convenience fees. Some laws and rules require that mandatory fees be shown up front in certain industries. Read: Hidden Fees and Junk Fees: What to Watch For →

L

Loot box: A virtual item in a video game that contains random rewards, often bought with real money or in-game currency. You do not know what you will get until you open it. Because the rewards are random, it can be easy to keep buying in hopes of getting a rare item. Set spending limits and use parental controls for children. Read: How to Spot an Overpriced App →

M

Microtransaction: A small purchase inside an app or game, such as extra lives, cosmetic items, or in-game currency. Each one may cost little, but many small buys can add up quickly. Check your app store purchase history now and then, and consider requiring a password or approval for every purchase to keep spending in view. Read: How to Spot an Overpriced App →

N

Negative option: A sales arrangement where your silence or inaction is treated as agreement to keep paying. Free trials that convert to paid plans, automatic renewals, and continuity plans that ship products on a schedule are common examples. Negative option offers are legal, but laws generally require clear disclosure of the terms, your informed consent, and a simple way to stop charges. Read: Your Rights With Automatic Renewals →

P

Paywall: A barrier that blocks some or all content or features until you pay or subscribe. News sites, apps, and streaming services often use paywalls. Some allow a few free articles or uses first. Before paying to get past a paywall, check whether it is a one-time purchase or a recurring subscription, and how to cancel. Read: How to Spot an Overpriced App →
Price increase notice: A message from a business telling you that the price of your subscription or service is going up, usually with the new price and the date it takes effect. Some app store increases require your agreement, while others take effect after notice unless you cancel. Read these notices carefully, because the start date is your deadline to cancel or change plans. Read: What to Do When a Subscription Raises Its Price →
Price lock: A promise that your price will not change for a set period of time, such as one or more years. Price locks are sometimes offered with internet, phone, or utility plans. Check exactly what is locked, since taxes, fees, or add-ons may still change, and find out whether staying locked requires a contract or an early termination fee. Read: How to Negotiate Lower Bills →
Prorated: Divided up based on the time actually used. A prorated charge or refund covers only part of a billing period. For example, if you cancel halfway through a month, a company that prorates may refund half of that month. Many subscriptions do not prorate and instead keep your access until the period ends, so check the policy before canceling. Read: How to Cancel a Subscription →

R

Refund policy: A business's rules for when and how you can get your money back, including time limits and what condition items must be in. Refund policies vary widely, and some purchases are final. App stores have their own refund processes that may differ from the developer's. Read the policy before buying, and save receipts in case you need to ask for a refund. Read: How to Get an App Store Refund →
Resort fee: A mandatory daily charge some hotels and vacation rentals add to the room rate, sometimes described as covering amenities like Wi-Fi or a pool. The FTC's fee rule requires that the advertised total price for short-term lodging include mandatory fees like these. When booking, compare total prices, not just nightly rates, and check the final amount before paying. Read: Hidden Fees and Junk Fees: What to Watch For →
Retention offer: A discount or perk a company offers to keep you from canceling or switching to a competitor, such as a lower monthly price or a free upgrade. Retention offers often appear when you call to cancel or start the online cancellation process. Before accepting, ask how long it lasts, what the price will be afterward, and whether it adds a contract. Read: How to Negotiate Lower Bills →
Roach motel: A nickname for a design that makes it easy to sign up for something but hard to get out of it. For example, you can subscribe in a few taps but must call during limited hours or go through many screens to cancel. It is a type of dark pattern. Keep records of every cancellation attempt in case you need to dispute charges. Read: Dark Patterns: Design Tricks That Push You to Spend →
ROSCA: Short for the Restore Online Shoppers' Confidence Act, a federal law passed in 2010 that covers negative option offers sold online. In general, it requires sellers to clearly disclose important terms before collecting billing information, get your express informed consent before charging you, and provide a simple way to stop recurring charges. The FTC enforces it. Read: Your Rights With Automatic Renewals →

S

Service fee: A charge added to a purchase or bill for handling, processing, or providing a service. The name can be vague, and the fee may not be shown until checkout. If you see a service fee, ask what it covers and whether it is required. Comparing total prices, including all fees, gives you the clearest picture of the real cost. Read: Hidden Fees and Junk Fees: What to Watch For →
Sneak into basket: A design trick where an extra item, such as insurance, a donation, or an add-on, is added to your online cart without you choosing it. Sometimes it happens through a pre-checked box. It is a type of dark pattern. Review every line in your cart and remove anything you did not choose before paying. Read: Dark Patterns: Design Tricks That Push You to Spend →
Statement credit: Money added back to a credit card account that lowers the balance you owe. Statement credits can come from refunds, resolved disputes, rewards, or promotions. A credit is not cash in your hand, but it reduces what you need to pay. Check that promised credits appear on your statement, and follow up if they do not. Read: How to Dispute a Charge →
Subscription fatigue: The feeling of being overwhelmed by too many subscriptions to track, pay for, or use. It can lead people to forget what they are paying for or to keep services they no longer want. A regular subscription audit, where you list each recurring charge and decide what to keep, can help you regain control of your spending. Read: How to Do a Subscription Audit →

T

Total price: The full amount you must pay, including all mandatory fees and charges, not just the base price. Some fees, like optional add-ons, government taxes, or shipping, may be shown separately depending on the rules. Comparing total prices is the most reliable way to tell which offer is actually cheaper. Always check the final total before you pay. Read: Hidden Fees and Junk Fees: What to Watch For →

U

Upsell: A sales technique that encourages you to buy a more expensive version, an upgrade, or an add-on to what you are already buying. Upsells can be useful when they meet a real need, but they can also push you to spend more than planned. Before saying yes, ask yourself whether you would have chosen the extra on your own. Read: How to Spot an Overpriced App →

V

Virtual card number: A substitute card number linked to your real credit or debit account, offered by some banks and card issuers. Depending on the issuer, you may be able to set a spending limit, an end date, or lock it to one merchant. Some people use one for free trials or online subscriptions, since canceling the number can block future charges. Canceling still does not end your agreement with the company. Read: Free Trial Traps and How to Avoid Them →

General definitions, not legal advice. Laws and rules change and can differ by state.