Redesigning Trust: How Click-to-Cancel is Shaping the Future of Member Experience

For nonprofits rooted in community, every operational choice is an opportunity to build trust.

The FTC’s upcoming “Click-to-Cancel” rule, going into effect May 14, 2025, brings a shift in how organizations manage membership cancellations. But more than a regulatory requirement, this change offers an invitation to lead with transparency.

When it’s easier to cancel, members feel more confident about joining.

The FTC poses a fair question: If joining online is fast and simple, shouldn’t leaving be too?

This rule brings key changes:

• Online and phone cancellations: If members can sign up online, they must be able to cancel the same way, without obstacles.
• No sales pitches during cancellation: Members shouldn’t feel pressured by offers when they choose to cancel unless they actively opt in.
• Clear disclosure of terms: Your pricing, renewals, and cancellation steps must be transparent—building trust through clear, accessible information.
• Proof of consent: You’ll need to obtain and retain explicit consent before charging members, which will reinforce the accountability and trustworthiness of your organization.

Rather than seeing these as restrictions, it’s an opportunity to elevate your process and show members that their needs come first.

Based on common membership setups, here’s when online cancellation is and is not required:

Online Cancellation Is Not Required

If the membership has a set end date and does not automatically renew, you are not required to provide an online cancellation option. Examples include:

• Annual memberships paid upfront that expire automatically
• One-time monthly or short-term memberships (e.g., 3-month programs)
• Any membership that ends without charging the member again

Online Cancellation Is Required

If the membership automatically renews, you must offer a way to cancel online. This includes:

• Month-to-month memberships with auto-billing
• Annual memberships that renew by default
• Memberships bundled with recurring donations

If charges continue until the member actively cancels, the online option is required, regardless of how the membership was originally set up.

No matter what happens with this ruling or any future regulations, digital-first is here to stay. It’s how consumers operate now, and that journey starts long before the final step.

Here’s how organizations are already partnering with Daxko to design digital-first experiences that build trust and extend the member lifecycle in meaningful ways:

• Encouraging mobile app adoption to give members self-service access to schedules, updates, and account info.
• Automating welcome emails, reminders, and surveys with tools like Daxko Engage.
• Using member data to personalize communication and celebrate milestones.

When members feel known and supported, they stay longer and are more likely to come back even if they leave.

As you prepare to implement online cancellation, taking a proactive, thoughtful approach will position your organization to serve with greater transparency and clarity.

Here’s how to get started.

1. Review Your Cancellation Flow

• Is the current process simple and accessible? Make sure your cancellation flow is just as intuitive as your sign-up process.
• Are policies and terms clearly communicated? Especially at point of sign-up, members should understand what they’re agreeing to – including how to leave if needed.
• Is your staff ready? Train your team to handle cancellations with empathy, consistency, and clarity – whether online or in person.

2. Refresh Cancellation Reasons

• Align reasons with real member feedback. Audit your existing list to ensure it reflects common, relevant insights.
• Choose what’s member-facing. Not all reasons need to appear in the online flow – prioritize options that help members feel understood and supported.

3. Evaluate Your Cancellation Policy

• Confirm your notice period. Ensure they align with business goals while staying fair and easy to understand.
• Plan for contract-period cancellations. Establish how you’ll address these scenarios.

4. Preparing for Long-Term Success

The FTC’s “Click-to-Cancel” rule is a chance to show members you value their time and trust. By simplifying cancellation, you strengthen relationships and uphold your mission. Daxko is here to help you navigate these changes with confidence and continue building lasting member engagement.

This rule isn’t about cancellation. It’s about choice. When members know they can leave freely, they are 67% more likely to purchase. When processes are transparent, people feel respected. When digital tools reflect care and convenience, communities thrive.

This is the work of Daxko; supporting mission-driven organizations with the tools they need to operate with clarity, compassion, and confidence. Whether it’s through flexible membership, secure payments, or personalized engagement, we’re committed to helping you create experiences that put people first.

Let Click-to-Cancel be more than compliance. Let it be the next step in designing a better, more human member journey.

When your digital experience reflects your mission, members feel seen, respected, and empowered. Click-to-Cancel is your moment to show that transparency is of value.

Start now and make every step – from join to cancel – a reflection of trust.

Check out these steps to get your organization ready for May 14th. This article walks you through the staff set-up and key configuration details to ensure a smooth, clear cancellation experience for your members.