Updated February 2026 · 12 min read
Cancellation fees are the subscription industry's last-ditch effort to keep your money. Some are legitimate (covering equipment costs), but many are designed purely to make you give up and keep paying. Here's every type of cancellation fee, which companies charge them, and exactly how to avoid or reduce them.
💡 Key takeaway
Most cancellation fees are negotiable. In many cases, you can eliminate them entirely by calling, citing the FTC's "Click-to-Cancel" rule, or timing your cancellation correctly.
The most common and most frustrating. ETFs are charged when you cancel before a contract period ends. They typically range from $50 to $400+ depending on the service.
Common ETF amounts:
If a service provided hardware (router, security cameras, solar panels), you may owe for unreturned equipment. These can be surprisingly expensive.
Signed up for a discounted annual plan and want out early? Many companies charge the difference between the monthly and annual rate, plus a penalty.
Some financial services charge just for closing your account. These are increasingly rare due to regulatory pressure but still exist.
Gyms love this one. Instead of cancelling, they offer to "freeze" your membership — but charge $10-15/month to keep it on ice. This is often a worse deal than cancelling and re-joining later.
Not sure what you're paying for?
Upload a bank statement and we'll find every subscription in 30 seconds — including ones you forgot about.
Scan My Statement — FreeThe FTC's "Click-to-Cancel" rule (effective 2024) requires companies to make cancellation as easy as sign-up. If they force you to call, visit a store, or navigate a maze of retention offers, they may be in violation.
What to say: "I'm requesting immediate cancellation under the FTC's Click-to-Cancel rule. I signed up online and expect to cancel online without additional steps."
Many annual contracts have a cancellation window right before renewal. Adobe, for example, lets you cancel within 14 days of renewal with a full refund. Most gym contracts have a specific commitment period — ETFs only apply during that period.
Companies waive cancellation fees more often than you'd think, especially if you:
For services that accept email cancellations, a well-written email creates a paper trail and can reference relevant consumer protection laws. Use our free cancellation email generator to create one instantly.
If a company won't waive an unfair fee, file complaints with:
Many modern subscription services have moved away from cancellation fees entirely. Here are major services you can cancel anytime without penalty:
50% of remaining months ($100-300+)
Annual plan locked at monthly rate; early exit costs half
$400 flat + equipment return
Rural customers have no alternatives, plus roof-mounted equipment
Remaining contract balance ($1,000+)
60-month financing for equipment baked into contract
Several states have passed laws specifically addressing subscription cancellation:
Can I dispute a cancellation fee with my credit card?
Yes. If a company charges an unfair cancellation fee, you can file a chargeback with your credit card issuer. This works best if the company made cancellation unreasonably difficult, changed terms after you signed up, or continued charging after you requested cancellation. Keep documentation of all cancellation attempts.
Do I still have to pay if I just stop using the service?
Yes — simply not using a service doesn't cancel it. You'll continue to be charged until you formally cancel. This is how 'zombie subscriptions' happen. Many people pay for months or years without realizing it.
Are cancellation fees legal?
Generally yes, if disclosed in the terms of service. However, the FTC's Click-to-Cancel rule and state consumer protection laws are increasingly limiting how companies can charge them. Undisclosed fees or fees that make cancellation unreasonably difficult may be legally challengeable.
How do I know if I'm in a contract?
Check your original signup confirmation email, the service's terms of service, or log into your account and look for 'plan details' or 'billing.' Annual plans are technically contracts. Upload your bank statement to JustCancel and we'll identify all recurring charges — including ones in contract periods.
Want to find ALL your subscriptions at once?
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