Visa updates rules for subscriptions using introductory trials or promotions

To protect its cardholders from unwarranted transactions, the Visa credit card scheme is updating its rules and conditions for subscriptions using introductory trials or promotions.

From April 2020, all businesses that accept Visa as a payment method to provide physical/digital goods or services and offers free trials or discounted introductory offers as part of a subscription/recurring service must comply with the updated requirements. A Quick Reference Card from Visa has been provided here. 

What does this mean for businesses using Ezypay?

If a business’s customer signs up to a subscription/recurring payment plan via Ezypay using a Visa credit card, and there is a free trial or discounted introductory offer associated with this, the business is required to comply with the updated rules.

If you do not have a free trial or discounted introductory offer as part of your subscription or recurring service, these requirements do not apply to you. 

The Ezypay merchant must:

1. Provide a copy (via email, SMS, or other delivery method) of the terms and conditions of the subscription service to the cardholder at the time of enrolment, even if no amount is due at the time, including:
   - Confirmation that the cardholder has agreed to a subscription unless they cancel
   - The start date of the subscription
   - Details of the goods/services
   - Ongoing transaction amount and billing frequency/date
   - A link for the cardholder to easily cancel any subsequent transactions online
2. Send a reminder notification (email, SMS) including a link to an online cancellation policy at least seven (7) days before initiating a recurring transaction if:
   - A trial period, introductory offer, or promotional period is about to expire
   - The nature of the recurring agreement has changed e.g. the price or billing period
3. Provide an easy way for the customer to cancel a subscription or payment method online, regardless of how the cardholder initially interacted with the merchant (e.g. in store, radio/TV ad)
4. Require the cardholder to expressly consent to entering an ongoing subscription service for recurring payments at the time of enrolment
5. Disclose the following on transaction receipts:
   - Length of any trial period, introductory offer, or promotional period, including clear disclosure that the cardholder will be charged unless the cardholder takes steps to cancel any subsequent transactions
   - Transaction amount and date for the initial transaction (even if no amount is due) and for subsequent recurring transactions
   - A link for the cardholder to easily cancel any subsequent transactions online

It is the merchant’s responsibility to adhere to these new rules implemented by Visa and include in their terms and conditions that the customer is aware they are signing up to Ezypay as the merchant’s payment provider. Ezypay’s Customer Terms and Conditions must be agreed to by each customer signing up, as required currently.