Mastercard Plans to Stop Free Trials That Keep Billing You (Update)

Mastercard announced a new policy for merchants who keep your card information after you sign up with a free trial. It requires merchants to request official authorization for recurring subscriptions.

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No-Hassle Free Trial

Subscriptions are everywhere nowadays, and this is great news for consumers who might forget they signed up for a free trial. Now, the merchant behind the trial has to warn you by email or text before your next payment is due.

The message will contain the transaction amount, payment date, merchant name, and detailed instructions on how to cancel the trial. Additionally, for every payment after that, you’ll still get a receipt containing the payment amount and cancel information.

Update

Nerdwallet reached out and informed me that Mastercard is only doing this for subscriptions for physical goods, not online subscriptions.

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