Mastercard to block unwanted subscriptions
Mastercard hopes to put a stop to subscription payments where customers may not be aware that they are being taken from their account after signing up for a free trial.
From April of this year, the company will require merchants to gain cardholder approval at the conclusion of the trial before they start billing.
Companies will need to send the cardholder an email or text detailing the transaction amount, payment date, merchant name along with explicit instructions on how to cancel a trial.
“For each payment thereafter, the merchant will have to send a receipt to the cardholder for each transaction by email or text message with clear instructions on how to cancel the service if the consumer so desires,” explained Paul Petta, chief franchise officer at Mastercard.