Merchants often let customers try out their product for a set number of days before charging the subscription fee. It’s frustrating, though, when you wind up paying for something that you weren’t satisfied with because of a complicated cancellation process.
The financial services company announced a change in their rules that would require merchants to gain cardholder approval at the end of a free trial before they start billing. The retailer will need to send the cardholder the transaction amount, payment date, merchant name and detailed instructions on how to cancel the trial, according to MasterCard.
If the cardholder chooses the continue with the subscription, after each payment, the retailer must send a receipt to the cardholder by email or text message. Like the message received at the end of the free trial, it will include the transaction amount, payment date, the merchant’s name and how to cancel the service.
With the new changes, the cardholder’s MasterCard statement will include the retailer’s website URL or the phone number of the store where the item was purchased.