It is technically legal, but it isn't good business!! Most companies only charge when they ship. It is against VISA and MasterCard's regulations for a merchant to bill their cards prior to shipping.
Contrary to what some sources indicate, the Fair Credit Billing Act does not address if it is legal for a company to charge you before shipping the product. Instead, it makes it illegal to not ship within advertised time period (or 30 days if no expected shipping date is mentioned in the agreement). If a merchant says "this item takes 90 days to ship", then they may bill right away and not have a legal problem if they ship before the 90 day window.
This depends on the companies policy, the availability of the product, etc. A company may wait until the charge clears before shipping the product, this can take anywhere from 2 to 14 business days.That is rare, but it has happened. It is best to check the policy of the company in which you are ordering from. It is possible that the company can charge your account even up to two weeks prior to shipping.
Yes they are a scam. They tell you you can have a free trial of their product and all you have to do is cancel before the trial period and they won't ship you anything else or charge your credit card. HOWEVER, they purposefully ship the next non-trial item BEFORE THE TRIAL PERIOD ENDS and they charge your card. And then when you try to cancel they tell you that you must ship the product back to them at your expense or else they will only refund you 60% of the product charge.
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