Shipkevich PLLC founder and principal Felix Shipkevich was recently featured in U.S. News & World Report discussing one of the most common sources of credit card disputes: recurring subscription charges that continue after a consumer believes they have canceled a service.
Subscription-based services have become a routine part of everyday commerce, from streaming platforms and software to memberships and utilities. But recurring billing can also create disputes when consumers continue seeing charges after attempting to cancel.
According to Consumer Financial Protection Bureau data cited in the article, canceled recurring transactions were the most common reason for credit card disputes in 2024, accounting for 40% of disputes involving general-purpose credit cards.
In the article, “Canceled Subscriptions Are Driving Credit Card Disputes,” Felix Shipkevich provided legal insight into when consumers may have grounds to challenge a recurring charge — and when a dispute may not be successful.
When Is a Credit Card Dispute Appropriate?
Seeing another charge after canceling a subscription does not necessarily mean the transaction is invalid.
The timing of the cancellation, the merchant’s billing cycle, whether the cancellation process was completed, and whether the consumer continued using the service can all affect the validity of a dispute.
As Shipkevich explained:
“A dispute is appropriate when the consumer properly canceled, but the merchant continued billing or refused to correct an unauthorized charge.”
Documentation can play an important role in demonstrating that a subscription was actually canceled before the disputed charge occurred.
Shipkevich also explained that disputes may fail when consumers cannot provide evidence of cancellation, attempt to cancel after a renewal has already occurred, or continue using the service after claiming to have canceled it.
Documentation Matters
The article highlights a practical consideration for consumers: keep records when canceling recurring services.
Cancellation emails, screenshots, chat transcripts, account notices, and other documentation can help establish when a cancellation occurred and what terms applied.
Consumers should also pay attention to billing cycles. Canceling a service does not always mean that a charge already incurred for the current billing period will automatically be reversed.
These distinctions can become particularly important if a disagreement ultimately turns into a formal credit card dispute.
What Happens When Recurring Charges Continue?
When a consumer believes a merchant has improperly continued billing after cancellation, the first step is generally to contact the merchant and request that the issue be corrected.
If the merchant does not resolve the issue, the consumer may then dispute the charge with their credit card issuer.
But what happens if the unwanted charges continue?
Shipkevich explained that consumers may be able to ask their card issuer to block future payments from the merchant. They can also provide the merchant with written notice expressly revoking authorization for additional charges.
Simply replacing a credit card may not always resolve the issue, as recurring payment credentials can sometimes be updated to a newly issued card through payment network account-updating services.
Recurring Payments Create Responsibilities for Consumers and Businesses
The rise in subscription-related disputes also highlights the importance of clear recurring-payment practices for merchants.
Businesses offering subscription services should maintain transparent billing terms, clearly communicate renewal dates and cancellation procedures, and ensure that cancellation requests are processed correctly.
Maintaining accurate records can also be important when responding to chargebacks or other payment disputes.
For consumers, understanding subscription terms and keeping documentation can make it easier to establish whether a future charge was authorized.
For merchants, clearly designed billing and cancellation procedures can help reduce confusion before it develops into a payment dispute.
A Growing Issue in Modern Payments
Recurring payments offer convenience for consumers and predictable revenue for businesses, but they also create legal, operational, and compliance considerations.
As subscription-based business models continue to expand, questions surrounding authorization, cancellation, billing disclosures, and credit card disputes are likely to remain important for consumers, merchants, payment providers, and financial institutions.
Felix Shipkevich’s commentary in U.S. News & World Report reflects his broader work in financial services and payments law, including matters involving payment processing, consumer financial regulation, and the legal obligations surrounding financial transactions.
For businesses operating subscription or recurring-payment models, the growth in disputes is also a reminder of the importance of maintaining clear billing practices and effective procedures for processing cancellations and resolving customer complaints.
Read full article here:
https://wtop.com/business-finance/2026/08/canceled-subscriptions-are-driving-credit-card-disputes/