Subscription purchases authorize Microsoft to store the user's payment instrument and charge it on a recurring basis until the subscription is cancelled by the user or Microsoft. Users must cancel before the next billing date to avoid the subsequent charge.
This analysis describes what Xbox's agreement states, permits, or reserves. It does not constitute a legal determination about enforceability. Regulatory applicability and practical outcomes may vary by jurisdiction, enforcement context, and individual circumstances. Read our methodology
This provision establishes the contractual basis for Microsoft to store payment instruments and initiate recurring Electronic Payments for subscription services, and places the responsibility on users to cancel before the next billing date to stop charges.
This new provision establishes automatic recurring billing obligations that continue indefinitely until affirmative cancellation, with liability for charges incurred up to the cancellation date.
View full change record →Under this clause, subscribing to a Microsoft service authorizes Microsoft to store the user's payment instrument and process recurring Electronic Payments at the agreed interval until cancellation. The agreement states that cancellation must occur before the next billing date to prevent the subsequent charge.
Cross-platform context
See how other platforms handle Recurring Payments Authorization and similar clauses.
Compare across platforms →"When you purchase the Services on a subscription basis (e.g., monthly, every 3 months or annually), you agree that you are authorizing recurring payments, and payments will be made to Microsoft by the method and at the recurring intervals you have agreed to, until the subscription for that Service is terminated by you or by Microsoft. You must cancel your Services before the next billing date to stop being charged to continue your Services. By authorizing recurring payments, you are authorizing Microsoft to store your payment instrument and process such payments as either electronic debits or fund transfers, or as electronic drafts from your designated account (for Automated Clearing House or similar payments), or as charges to your designated account (for credit card or similar payments) (collectively, 'Electronic Payments').Excerpt from Xbox's Terms of Use
(1) REGULATORY LANDSCAPE: Recurring payment authorization provisions engage the FTC's Negative Option Rule, which requires clear disclosure of subscription terms and simple cancellation mechanisms.
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This provision establishes the contractual basis for Microsoft to store payment instruments and initiate recurring Electronic Payments for subscription services, and places the responsibility on users to cancel before the next billing date to stop charges.
Under this clause, subscribing to a Microsoft service authorizes Microsoft to store the user's payment instrument and process recurring Electronic Payments at the agreed interval until cancellation. The agreement states that cancellation must occur before the next billing date to prevent the subsequent charge.
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