In an effort to reduce complaints and chargebacks from consumers and stay up to date with federal and state laws, Mastercard’s new requirements focus on point of payment disclosures with an extra set of requirements for negative options.

📅Key dates to know:
📌September 22, 2022: New point of payment disclosure requirements in effect 
📌March 22, 2022: All other requirements in effect 

📚 Quick Summary of Rule Changes for Merchants:

1️⃣ Point of Payment Disclosures
✔️Subscription/Recurring Billing Models 
・Must disclose subscription terms, including price and frequency of billing, and receive affirmative consent of terms
✔️Negative Option Billing Model
・Must disclose the terms and length of the trial period, including any initial charges, and the price and frequency of the following subscription. 
・Disclosures must be on the same screen as the order summary or where consumers enter their card information
・What is not accepted: requiring consumers to click on a link, scroll down the page, or expand a message box to see the terms

2️⃣ Enrollment Confirmation
・Must send a confirmation of enrollment to the consumer’s email or any other electronic method immediately following enrollment
・Confirmation must include the terms of subscription, the terms of a trial (if applicable), and clear instructions on how to cancel the subscription

3️⃣ Receipts
・Must send a receipt after each subscription billing by email or any other electronic method and include clear instructions on how to cancel the subscription

4️⃣ Reminders
✔️Negative Option Billing Model or Subscription/Recurring Billing Models with 6 Month+ Billing Periods
・Must send subscription reminders to consumers by email or any other electronic method between three and seven days before the card is automatically charged
・Notifications must contain the basic terms of the subscription and instructions on how to cancel the subscription prior to each billing date
✔️Additional Requirement for Negative Option Billing Model 
・Must send notifications prior to automatic enrollment in the full plan, inform the consumer that the subscription plan will begin at the end of the trial period unless canceled before the stated date, contain the basic terms of subscription, and instructions on how to cancel the subscription
・Note: Does not apply to high-risk negative option billing merchants offering a trial of a physical good that automatically enrolls consumer into a subscription plan following the end of the trial period 

5️⃣ Electronic Cancellation Method
・Must provide a simple and easy online or electronic cancellation method to subscribers 

🎯 Contact me if you need help with your disclosure, receipt, notification, and cancellation policies!