Mastercard prohibits companies from automatically debiting money after the end of the free trial period (updated)
UPD. The company has updated the press release. It turned out that everything said below applies only to physical goods (cosmetics, goods from the health sector), and not virtual (services, etc.).
It's sad when the free subscription ends, and the money automatically starts to be debited from the card. And it’s good if you liked the product, but it also happens that during the test period the user understands that the offer is not suitable for him. Forgetfulness or because of employment subscription is not canceled, and the money is spent in vain.
In some cases, canceling a subscription turns into a difficult quest, the passage of which does not bring any pleasure. Mastercard decided to help the holders of their cards. The company announced about the ban on automatic debit after the end of the free trial period.
After the Free Trial is over, the user must confirm the intention to pay for the next cycle of work with the product. The company that owns this product will not be able to quietly withdraw funds, now it needs to send the user an email or sms with information such as the size of the transaction, the date of payment, the name of the company. The same message should contain clear instructions for canceling the subscription.
And each new write-off cycle should be accompanied by the same actions performed by the product owners. The company should send an email or sms with information about the amount of payment and instructions for canceling the subscription, if the client wants to stop using the product.
The payment description must contain the URL of the company's website or the phone number of the store (online or offline) in which the purchase was made.
According to representatives of Mastercard, a free trial period is a great way to attract customers. Unfortunately, not all users know how to cancel a subscription, and some companies make the cancellation process as difficult as possible. New rules allow you to protect the client, leaving companies the opportunity to attract new users, providing a free trial period.
It's sad when the free subscription ends, and the money automatically starts to be debited from the card. And it’s good if you liked the product, but it also happens that during the test period the user understands that the offer is not suitable for him. Forgetfulness or because of employment subscription is not canceled, and the money is spent in vain. In some cases, canceling a subscription turns into a difficult quest, the passage of which does not bring any pleasure. Mastercard decided to help the holders of their cards. The company announced about the ban on automatic debit after the end of the free trial period.
After the Free Trial is over, the user must confirm the intention to pay for the next cycle of work with the product. The company that owns this product will not be able to quietly withdraw funds, now it needs to send the user an email or sms with information such as the size of the transaction, the date of payment, the name of the company. The same message should contain clear instructions for canceling the subscription.
And each new write-off cycle should be accompanied by the same actions performed by the product owners. The company should send an email or sms with information about the amount of payment and instructions for canceling the subscription, if the client wants to stop using the product.
The payment description must contain the URL of the company's website or the phone number of the store (online or offline) in which the purchase was made.
According to representatives of Mastercard, a free trial period is a great way to attract customers. Unfortunately, not all users know how to cancel a subscription, and some companies make the cancellation process as difficult as possible. New rules allow you to protect the client, leaving companies the opportunity to attract new users, providing a free trial period.