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New Master Card Rules for Merchants Offering Free Trials

By Anna Krasnykh January 22, 2019 309 Views No comments

As you know, Subscriptions are all about providing the best experience for your customers. In our previous blog about Top and Bottom Performers we noted that the best Subscription providers actually give their clients a considerable amount of freedom over controlling their subscription and terms. In an effort to protect the consumers, the financial industry is starting to enforce some of these best practices.

On January 16th, Mastercard announced a new rule change that will apply to merchants offering Free Trials of physical goods. Upon the conclusion of a trial, merchants will need to obtain the cardholder's approval to start billing. Additionally, in order to protect the customer from receiving unwanted product, Mastercard will also require merchants to send a receipt for every transaction, containing clear instructions on how to unsubscribe. By enforcing these rules, Mastercard hopes to ensure that "every ecommerce engagement [is] simple, safe and secure". The rule change is aimed at increasing transparency and overall customer satisfaction.

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