--- title: "Navigating Mastercard's revised standards for subscription payments" canonical_url: https://docs.connect.worldline-solutions.com/blog/#bookmark_d33c8ea2f969e8aaf658fff6c82b5f8f section: bookmark_d33c8ea2f969e8aaf658fff6c82b5f8f --- # Navigating Mastercard's revised standards for subscription payments 16 Jan 2024 Connect team ![](https://docs.connect.worldline-solutions.com/dA/d33c8ea2f9/image/Mastercard+mandate_blog_120423.png?language_id=1) Mastercard implemented new requirements related to a subscription/recurring billing model, a negative option billing model, or both, as explained in their [AN 4934 Revised Standards](https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/subscription_recurring-payments-and-negative-option-billing-merchants.pdf). The objective behind these changes is to ensure a positive cardholder experience and mitigate negative practices associated with these payment types. What do you need to do to stay compliant? ## Benefits for you and your consumers The regulation is oriented toward having an improved user experience by reducing the number of complaints and chargebacks related to consumers who: * didn't intend to enroll in a subscription * didn't recognize the transaction associated with this subscription * have trouble canceling their subscription # What are the regulations? ## Free/low-cost trial (negative option billing) This subscription model suggests that you offer a free or low-cost trial period of a digital good (streaming service, club membership, website access, or software license) and then automatically enroll the consumer into a subscription plan at the end of the trial period (also called "negative option billing"). You're required to inform the consumer about the upcoming start of the subscription plan at least 3 days but no more than 7 days before the trial period concludes or whenever there are changes in the terms and conditions. This notification must include the following information: * basic terms of the subscription * instructions on subscription cancellation The notification can be sent by email or any other electronic method. This requirement doesn't apply to high-risk negative option billing models if you offer a free or low-cost trial period for a physical good, such as dietary supplements and healthcare products. Please read section 5.4.1 of the [Transaction Processing Rules of Mastercard](https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/mastercard-rules.pdf). ## Subscription/recurring payments In addition to the requirements for a free/low-cost trial, you must adhere to regulations related to the information shown during the payment process and inform the consumer. ## Payment At the point of payment, you must clearly disclose the basic terms of the subscription, which contain: * billing price billing frequency (for example, "You will be billed EUR 9.95 per month until you cancel the subscription.") In case of a negative billing option, also disclose the following: * terms of the free/low-cost trial, including any initial charges * length of the trial period * price and frequency of the subsequent subscription (for example: "You will be billed EUR 2.99 today for a 30-day trial. Once the trial ends, you will be billed EUR 9.95 each month until you cancel.") * capture the consumer's affirmative acceptance of such terms The point of payment includes the screen where the consumer enters their card details and any screens that show a summary of the order before it's submitted for authorization to the consumer. This requirement is not met by providing a link to another page, like a terms and conditions page, or by making consumers expand a message box or scroll down the page to view the terms. ## Confirmation to the consumer at the time of enrollment You must send a confirmation by email or any other electronic method at the time of enrollment in a subscription/recurring billing plan that provides the following: * terms of the subscription, including the trial period terms when applicable * clear instructions on how to cancel the subscription ## Confirmation to consumer after every billing You must send a receipt by email or any other electronic method after every billing, including clear instructions for canceling the subscription. Please note that Mastercard standards prohibit merchants from submitting subsequent authorization requests on the same primary account number (PAN) when the original authorization response included specific response codes. Refer to [AN 1704---Multiple Authorization Requests for Card-Not-Present Transactions.](https://techdocs.mastercard.com/bundle/m_AN1704_MultiAuthReqCNP/page/c24177120.html) ## Cancellation methods for consumers You must provide your consumers with an online or electronic cancellation method, making it easy for them to cancel their subscriptions. ## Notification for billing plans less frequently than every six months For any subscription/recurring payment plan that bills a consumer less frequently than every 6 months (180 days), you must send a notification no less than 3 days and no more than 7 days before the billing date that includes the terms of the subscription and instructions about how your consumer may cancel the subscription. ## What do you have to do? If you create your own checkout page, you must implement these regulations yourself. If you use our MyCheckout hosted payment pages, you'll simply need to send the relevant data to us, as we've already handled the payment-related requirements. Read more information in our [subscription details guide](https://docs.connect.worldline-solutions.com/documentation/hosted-payment-pages/subscription-details.md). ## When was the regulation implemented? The requirements became effective as of March 22, 2022 (except the requirement to disclose at the point of payment, which came into effect on September 22, 2022). ## Should the same be implemented for transactions of other card schemes? Although you're not obliged to do the same for other card schemes, disclosing any information related to subscriptions is recommended. ## Where can I read the official regulation? You can find more information in the official [Mastercard documentation](https://www.mastercard.us/content/dam/public/mastercardcom/na/global-site/documents/subscription_recurring-payments-and-negative-option-billing-merchants.pdf). [Read more Read less](https://docs.connect.worldline-solutions.com/blog/.md#hidden_d33c8ea2f969e8aaf658fff6c82b5f8f)