Mastercard Blocks Companies From Automatically Billing Customers After Free Trial Period

Mastercard Blocks Companies From Automatically Billing Customers After Free Trial Period

Mastercard has introduced new guidelines that prevent companies from automatically billing people after a free trial. Going forward, these companies will also be required to provide detailed instructions on how to cancel the subscriptions as well.

The new rules mean that companies that attempt to start billing a Mastercard holder must first seek permission at the end of the trial. These companies must spell out in either text or email exactly how much is being billed, what it’s for, and when the payment is scheduled to happen.

Each bill sent to a cardholder must also explain how to cancel the subscription.

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Additionally, each billing statement must also include the merchant’s website URL or phone number from which the original purchase was made.

In all, Mastercard is saying that these new rules will provide its customers with more peace of mind when signing up for trials. Saving them from having to contest unwanted charges that may appear due to having forgotten about the trials.

This extends to more than online services, but also extends to any merchant that offers a trial. Including physical services and products.

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