Mastercard changes rules on automatic billing for free trials
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DURBAN - Mastercard has introduced rules for merchants that offer free product trials to make the free trial experience hassle-free for their customers according to the Mastercard news blog.
The changes in the rules requires merchants to get approval form the cardholder at the end of the trial before Mastercard can start automatic billing,
To help cardholder the automatic billing decision, merchants will have to send the cardholder via text or email the transaction amount, the payment date, the name of the merchant and instructions on how to cancel the free trial.
For each payment that takes place once the trial has ended, the merchant will be required to send a receipt to the cardholder for each transaction. The receipt can be sent by text message or email and it must include clear instructions on how to cancel the service of the customers wishes to.
The charges on the cardholders statement must have the merchant's website URL or the contact number of the store where the purchase was made.
Free product trial offers are a useful way to grow sales and improve consumer satisfaction and the new rules will ensure transparency and an amazing experience for cardholders.
BUSINESS REPORT ONLINE