Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.
An opt-out cross-sale is an offer that automatically includes an additional product or service with a purchase, unless the customer actively opts out. While this model has historically delivered higher short-term returns, it has also been linked to increased chargebacks, customer disputes and consumer complaints — metrics that immediately attract acquirer and regulator attention. Unsurprisingly, acquirers tend to dislike opt-out cross-sales.
While the loss of opt-outs may cut short-term revenue, it also opens the door for sustainable, compliant monetization strategies. With the ever-increasing pressure on our industry, now is the time to experiment with new ways to replace opt-out cross-sale revenue.
This month, let’s examine cross-sales, their prospects, and what merchants can do to recover lost revenue.
A Worldwide Regulatory Crackdown
Globally, a number of regulatory bodies prohibit opt-out cross-sales and have taken merchants to court for deceptive marketing practices. They’ve made their position clear: Consent must be explicit, not implied.
In the United States, scrutiny comes from multiple directions:
GLBA/CFPB. Banks, lenders and payment processors face strict rules under the Gramm-Leach-Bliley Act and Consumer Financial Protection Bureau regulations. Consumers must be given clear notice and a meaningful opportunity to opt out before personal information is shared for marketing or cross-selling. Using prechecked boxes or unclear consent mechanisms can violate CFPB prohibitions.
FTC rules. The Federal Trade Commission considers opt-out cross-sales deceptive if the opt-out is hidden or confusing, if the consumer is charged for something they didn’t clearly consent to, or if disclosures are not “clear and conspicuous.”
ROSCA. The Restore Online Shoppers’ Confidence Act requires express informed consent for any online transaction involving recurring charges or bundled add-ons.
In the EU, the General Data Protection Regulation (GDPR) and the Consumer Rights Directive prohibit opt-out cross-sales involving personal data or paid services. Explicit, informed consent is mandatory.
In the U.K., the Data Protection Act and the Credit Monitoring Arrangement (CMA) guidelines make prechecked boxes for offers illegal. In Canada, anti-spam legislation and the Competition Act require express consent for most marketing and data-sharing.
Collectively, these regulations make clear that opt-out sales models are incompatible with modern consumer protection frameworks. As a result, acquirers are proactively auditing merchant sales flows, especially during onboarding, to reduce exposure.
Turning Compliance into Opportunity
When I discuss with merchants the potential of opt-out cross-sales going away, there is a general feeling from many paysite owners that this would mean the end of their program. They worry that these sales are essential to profitability. With the cost to produce or purchase content, buy traffic, maintain infrastructure and now comply with age verification laws, there is a lot of financial pressure on paysites.
Yet while the loss of opt-outs may cut short-term revenue, it also opens the door for sustainable, compliant monetization strategies. With the ever-increasing pressure on our industry, now is the time to experiment with new ways to replace opt-out cross-sale revenue.
Like many processors, we’ve been helping merchants test solutions that maintain conversions and compliance. Here are some strategies that have been working:
Payment page updates. Experiment with a new and improved opt-in cross-sale page. About a year ago, we worked with one of our key merchants on a new opt-in format. With a bit of testing and fine-tuning, the new page achieved comparable revenue to prior opt-out models. When positioned with transparency and relevance, opt-in offers can build trust and deliver long-term results.
One-click checkout offers. Present an offer after the consumer’s initial purchase and before granting access to the members area. Many merchants now use a one-click upsell, promoting a different or partner URL. This is an easy way for consumers to accept a second offer, recapturing lost cross-sale revenue.
White-label CAM integrations. Take advantage of white-label CAM programs like Streamate, IMLive, CAM4 and Flirt4Free. These programs create interactive experiences and generate healthy commissions.
Members-area upsells. Once a consumer is active, upsell within your members area, rotating offers and highlighting exclusive programs.
Partner up. Reach out to other paysite owners interested in buying or selling traffic, to cross-market.
Focus on Retention
Reducing churn isn’t just about preventing cancellations — it’s about creating opportunities to reengage members at every stage of their journey. When a customer signals that they’re ready to leave, treat that as a moment to resell your value. Offer a compelling incentive to stay, such as a special discount, bonus content or a modified subscription plan that better fits their needs. If you have a live support team, equip them with the tools to save accounts. Rewarding representatives for every successful “save” can boost both retention and team morale.
Finally, don’t forget about former customers. Reaching out to canceled users with fresh offers, new promotions or loyalty incentives can often turn cancellations into comebacks — proving that retention doesn’t end when the subscription does.
Staying Ahead of Change
While not all acquirers are currently being aggressive about eliminating opt-outs, it’s important to keep this issue on your radar. Start experimenting now with new conversion and retention solutions, so you’re ready when the day comes that you need them.
For adult industry merchants, regulatory scrutiny and brand reputation are intertwined. That means success in this new environment will depend on evolving revenue models without crossing compliance boundaries. By embracing consent-driven offers, smarter engagement and diversified revenue streams, merchants can not only recover lost income but also build stronger, more resilient businesses.
Cathy Beardsley is president and CEO of Segpay, a merchant services provider offering a wide range of custom financial solutions including payment facilitator, direct merchant accounts and secure gateway services. Under her direction, Segpay has become one of four companies approved by Visa to operate as a high-risk internet payment services provider. For questions or help, contact sales@segpay.com or compliance@segpay.com.
