September 16, 2022
MasterCard free trial billing policy

MasterCard Says it Won’t Let Companies Automatically Bill Customers after Free Trials Come to an End

A new MasterCard free trial billing policy states the credit company won’t let corporations automatically bill customers without express permission…

Free trials are everywhere these days. It’s a simple way for companies to lure new customers who often forget or just neglect to cancel. But now, MasterCard states it won’t allow the practice to continue to the detriment of its customers.

MasterCard Free Trial Billing Policy Blocks Automatic Renewals

The credit issuer announced it will prohibit companies from charging customers renewal fees after free trials expire.

Instead, merchants must provide customers with certain information and request their permission to charge once the free trials end. Merchants must send a text or email, complete with a notification about the new subscription. Plus, it must include the payment date, cost, and other details.

For those who opt to continue and pay-up, MasterCard requires merchants to provide its customers with monthly receipts. And, the receipts must include cancellation information. Here’s the salient part of the announcement:

“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. To help cardholders with that decision, merchants will be required to send the cardholder – either by email or text – the transaction amount, payment date, merchant name along with explicit instructions on how to cancel a trial.”

Owen E. Richason IV

Covers social media, apps, search, and similar news. History buff, movie, and theme park lover. Blessed dad and husband.     

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