Business Monthly Method of Payment

Answered by:

Question:

Can a business make monthly automatic debit compulsory for payment of their product or service without offering another method of payment to the consumer?

Answer:

Randy Carey

If it does not involve an extension of credit, yes.

Answer:

John Burnett

If the business is providing a single product or a one-time service and allowing the consumer to pay for it over time, that's an extension of credit. But a gym that accepts monthly membership fees is generally not extending credit.