Mastercard’s new rules apply to certain merchants offering free trials for physical products, such as health care products, skin care products and vitamins, which convert to auto-renewing subscriptions or negative option plans. The new rules will not impact digital services like Netflix or Amazon Prime.
When obtaining cardholder approval for the first payment after the free trial, Mastercard will require merchants to send the cardholder a message, either by email or text, with the following details:
- Transaction amount;
- Payment date;
- Merchant name; and
- Clear instructions on how to cancel.
For each payment thereafter, the merchant will need to send a receipt to the cardholder by email or text message with clear instructions on how to cancel.
Read More.. Source Forbes