Close-up hand woman holding Mastercard credit cart on Apple keyboard.’Getty
Mastercard announced a new policy that will affect all merchants who offer free trials and collect card information for future automatic billings. With the rule change, merchants will no longer be able to charge cardholders at the conclusion of the free trial, without an explicit cardholder approval.
“At Mastercard, we want every commerce engagement to be simple, safe and secure and we are introducing rules for merchants that offer free-trials to make this a hassle-free experience for their consumers. The rule change will require merchants to gain cardholder approval at the conclusion of the trial before they start billing.”
While this might not be good news for merchants who will need to comply, it is great news for consumers aiming to increase their protection and satisfaction. Very often free trials can turn to recurring subscriptions which can be frustrating for consumers. If you don’t set up alarms and reminders or if you are a forgetful or busy person who subscribes for free trials this new feature will come in handy.
Mastercard cardholders soon will start receiving an email or text from the merchant to confirm their subscription and authorize automatic billing once the free trial ends. This email should contain the transaction amount, payment date, merchant name along with explicit instructions on how to cancel a trial. Furthermore, for each following transaction, the merchant will have to send a receipt containing its URL or phone number along with clear instructions on how to cancel the service if the consumer so desires.
“Free trial offers can be a legitimate and useful way to increase sales and improve consumer satisfaction. The new rules will help in increase transparency and ensure an outstanding experience for cardholders.”