As 2019 goes into full swing, it's important for providers
of payment processing services (referred to here as
"acquirers") and their merchants or submerchants to
prepare for the various regulatory and industry changes coming this
year. One such significant change comes in the form of
Mastercard's updated rules for negative option billing
programs.
Set to take effect on April 12, 2019, Mastercard's new rules
will tighten consumer protection requirements for negative option
merchants and their acquirers that process Mastercard transactions.
Several laws such as the Electronic Fund Transfer Act, the Restore Online Shoppers' Confidence
Act, and various state laws already apply to negative
option billing programs, but Mastercard's new rules go even
further. Among other things, the rules include a requirement for
merchants to notify consumers at the end of a trial period before
charging the consumer.
