Effective March 21, 2023, MasterCard will require new communication standards for recurring billing. Be prepared by setting new Message Templates in your account.
In an effort to minimize credit card chargebacks, MasterCard is updating its policies regarding recurring billing that require new communication with purchasers. The changes go into effect March 21, 2023 (Note - September 2, 2022: The deadline was rescheduled from September 22, 2022):
On September 22, 2022, Mastercard will update their requirements for subscription/recurring payments model. This change promotes transparency for cardholders and the prevention of disputes on transactions where the cardholder has agreed for the merchant to provide ongoing and/or periodic delivery of physical products or digital goods.
If you offer recurring payment billing, you are expected to:
- Disclose the subscription terms simultaneously with a request for card credentials including the price that will be billed and the frequency of the billing (For example, "You will be billed $9.95 per month until you cancel the subscription."). If you utilize a negative option billing model, you must disclose the terms of the trial including any initial charges, the length of the trial period, and the price and frequency of the subsequent subscription (For example, "You will be billed $2.99 today for a 30-day trial. Once the trial ends, you will be billed $19.99 each month thereafter until you cancel.")
- Clearly and prominently display the subscription terms on any payment and order summary webpages and capture a cardholder's affirmative acceptance of the subscription terms before the subscription order.
- Promptly send a subscription order confirmation to the cardholder through an email message or other electronic communication method that includes the subscription terms and clear instructions on how to cancel the subscription immediately after the cardholder completes the subscription order.
- Provide the cardholder with a transaction receipt through an email message or other electronic communication method that includes instructions for cancelling the subscription (and thereby withdrawing permission for any subsequent recurring payment transactions) each time an approved authorization request is received.
- Provide an online or electronic cancellation method (similar to unsubscribing from email messages or any other electronic method) or clear instructions on how to cancel that are easily accessible online (such as a "Manage Subscription" or "Cancel Subscription" link on the merchant's home page).
- Send an electronic reminder to the cardholder at least seven days prior to the next billing date that includes the subscription terms and clear instructions on how to cancel the subscription for any subscription where the billing frequency is every six months (180 days) or less frequently (e.g. cardholder is billed every six months, every year, every two years, etc.). The communication must clearly reference in the subject line that it relates to upcoming charges to the cardholder (for example, "Important Information About Upcoming Charges to Your Account") and the message must be distinct from marketing communications that are otherwise sent to the cardholder.
The policy changes will effect donations to charity, which, according to MasterCard's current FAQs are considered a subscription service.
Getting Prepared for the New Policy
raisin is already largely in compliance with these changes. If you currently offer recurring donations using the Donations module, however, we have developed two new Message Templates to help bring you within compliance.
The Messages are available to you in General Setup to establish default account-wide templates and in individual Donations events for campaign-specific overrides.
To expedite set up, we recommend first establishing content in General Setup, which will cascade across all events, and then overriding as necessary on specific events.
Notify Donor when a recurring donation is processed
The Message functions as a transaction receipt, and will be sent following each successful recurring donation.
This is an optional message that can be enabled account-wide from General Setup or in specific events. The message is enabled by the "Send Each Transaction?" checkbox: If checked, this is sent to all recurring donors in the events it is on for; if unchecked, it is not sent at all.
Checking "Send Each Transaction" in General Setup will enable the message across all Donations module events so that it does not need to be done individually.
It is defaulted to OFF.
To satisfy MasterCard requirements, this message should include, at minimum:
- Donation Amount merge field
- Donation Frequency merge field
- Payment Details merge field
- Instructions and/or a link to instructions on how to cancel their recurring donation
raisin will be offering an online portal for donors to adjust their recurring giving or cancellation electronically. More details are forthcoming.
Notify Donor of upcoming annual transaction
The Message will automatically be sent to annual donors 7 days in advance of their next scheduled transaction. To adhere to MasterCard's requirements, this message should include minimally:
- Donation Amount merge field
- Donation Frequency merge field
- Instructions and/or a link to instruction on how to cancel their upcoming donation
- Subject that clearly references changes to their card, such as "Important information regarding upcoming charges to your account"
Thank You for Recurring Donation
The new messages above supplement the existing set of "Thank You Messages for Recurring Donors." The Thank You message is sent immediately following successfully form submission, or enrolment into the recurring program. As such, this message should include:
- Donation Amount merge field
- Donation Frequency merge field
- Instructions and/or a link to instruction on how to cancel their upcoming donation