So, i signed up for a 14-days free trial on Zune.

I played with the software a bit and then decided to cancel the free trial after 10 days. I had my PayPal account attached to my Live/XBox account so all the charges originated there are automatically processed.

A good thing with Ukrainian banks is that when you sign up for an SMS banking, you will get notifications about every transaction attempt. And, thanks to proper mental state of the industry, there are no NSF fees, unlike some parts of the world.

So I got a notification today at 2AM that there was a charge attempted. My PayPal account is connected to a card I top up with the exact amount I plan to spend, nothing more. And should I left some extra cash there I could have been charged for £8.99 (I created the account while I was in the UK).

As a confirmation of the attempt I got the message from MSFT ZUNE:

We are contacting you because we have been unable to charge your PayPal Account for your 1-month subscription service(s) being billed to you through Microsoft Online Services. The following PayPal Account is the current payment method on your billing account:

The site itself tells a different thing:

Try it free

The low risk way to try before you buy. Enjoy the full Zune Music Pass benefits free for 14 days (Trial continues to paid subscription).**

...

** Free 14 day trial will automatically continue to a paid subscription unless cancelled before the end of the trial period. Limit 1 trial per person.

Published the question on the Zune support forums.