Categories: Digital LifeNewsTech

Mastercard’s new policy on automatic payments after free trial is not applicable to online services

Recently, Mastercard had announced a new ruling for subscription-based providers especially those that offer free trial offers. According to their official blog post, Mastercard had mentioned “…we are introducing rules for merchants that offer free-trials to make this a hassle-free experience for their consumers. The rule change will require merchants to gain cardholder approval at the conclusion of the trial before they start billing.”

While most consumers would think of online services such as Netflix, Spotify or Apple Music, unfortunately, this new ruling does not cover such online services. Mastercard has issued a clarification and they have updated their blog post announcement to reflect this latest update.

Based on the latest info, the hassle-free-trial policy is only applicable for merchants selling physical products. Their blog post had given several examples such as skincare and healthcare items.

We have reached out to Mastercard’s PR team in Malaysia and they have also confirmed that the free-trial policy is also available in our market. However, it only covers physical products and not online subscription services.

When it comes to subscriptions, this free-trial protection for online makes more sense and it is easily overlooked compared to physical products. Sometimes, consumers may forget that they have subscribed to a service and you only realise it after spotting it on the card statement. Unlike a physical product, you’ll lose 100% of its value if you don’t use the service during the subscription period.

[ SOURCE ]

Recent Posts

TikTok, Content Forum and UiTM empowers students with Digital Literacy to promote a safer digital space

TikTok in partnership with Communications and Multimedia Content Forum of Malaysia (CMCF) have recently organised…

31 minutes ago

Tesla owners in Malaysia can finally use the Autopark feature

Tesla owners in Malaysia have reported that their vehicles can now perform the Autopark feature.…

33 minutes ago

Asus ROG Phone 9 series launching in Malaysia on 10th December 2024

After unveiling its latest smartphones, the Asus ROG Phone 9 series, to the world, Asus…

55 minutes ago

WhatsApp Voice Message Transcripts converts voice into text

WhatsApp has introduced a new Voice Message Transcripts feature which allows users to easily convert…

7 hours ago

Every Transaction Could Make You a Monthly Millionaire – Here’s How with Maybank’s MAE

This post is brought to you by Maybank. Unlock more than just transactions with MAE’s…

18 hours ago

Oppo Find X8 series: Launching in Malaysia on 30th November 2024, priced from RM3,699

After making its debut in China late last month, the Oppo Find X8 series has…

23 hours ago

This website uses cookies.