NETbilling Highlights New VISA Trial Subscription Rules

NETbilling Highlights New VISA Trial Subscription Rules

LOS ANGELES — NETbilling is offering guidance on VISA's revised rules applying to merchants offering free or introductory trials that roll into recurring subscription fees.

"VISA has defined these new requirements aiming to avoid cardholder complaints and confusion, as well as tracking and monitoring difficulties," explained a NETbilling rep.

A chronological summary of requirements are listed below:

Effective April 18, 2020: At the time of enrollment, merchants must require the cardholder to expressly consent to entering an ongoing subscription service for recurring payments. This consent should be separate from the cardholder’s consent with any other general terms and conditions.

Effective April 18, 2020: An electronic reminder notification and a link to online cancellation at least seven days before initiating a recurring transaction should be sent to the cardholder if: a trial period, introductory offer or promotional period has expired; or the nature of the recurring agreement has changed.

This communication should include:

  • An electronic copy of the terms and conditions of the subscription service
  • Confirmation that the cardholder has agreed to a subscription, unless the cardholder cancels
  • The start date of the subscription
  • Details of the goods or services
  • Ongoing transaction amount
  • Billing frequency or date
  • Link or other simple mechanism to enable the cardholder to easily cancel any subsequent transactions online

If the trial, introductory offer or promotional period is seven days or less, the initial confirmation provided to the cardholder should include the details required in the reminder as stated above.

Effective April 18, 2020: Merchants must disclose the following on transaction receipts upon establishment of the agreement: length of any trial period, introductory offer or promotional period, including clear disclosure that the cardholder will be charged unless the cardholder cancels any subsequent transactions; transaction amount and date for the initial transaction (even if no amount is due) and for subsequent recurring transactions; link or other simple mechanism to enable the cardholder to easily cancel any subsequent transactions online.

Effective April 18, 2020: Merchants must provide an easy way to cancel the subscription or payment method online, regardless of how the cardholder initially interacted with the merchant. For the ease of cancellation, VISA provides as an example the unsubscribing from an email distribution list.

Effective April 17, 2021 (originally slated for April 18, has been delayed until 2021): An additional descriptor indicating a trial period-related transaction will be required in the Merchant Name field for the first transaction at the end of the trial period (i.e., the first transaction after the trial period has expired). For this additional descriptor, VISA provides as an example “trial”, “trial period” or “free trial.”

NETbilling is developing system changes to support these requirements within its payment gateway.

Contact for additional details.


Copyright © 2024 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

X's Clarification of Adult Content Policy Triggers International Confusion

X’s recent clarification of its adult content policies has created confusion in countries with strict anti-porn legislation, such as Indonesia, especially considering that owner Elon Musk has said that the limits of his “free speech absolutism” for the platform formerly known as Twitter are the laws of each country.

2024 AltStar Awards Winners Announced

Winners of the 2024 AltStar Awards, presented by Bad Dragon, were revealed during an in-person ceremony in Las Vegas on Sunday, June 9.

Strike 3 Expands Copyright Litigation Strategy to Hawaii

Strike 3 Holdings, the copyright holder for the Vixen Media Group brands, has partnered with a Hawaiian law firm to expand its persistent strategy of filing multiple infringement lawsuits in federal court against unidentified downloaders.

Industry Watch: Legal Eagles Assess Turbulence Across the Landscape

Halfway through 2024, and that old adult industry adage is once again confirmed: If it’s an election year in the U.S. — particularly a presidential election year — there will most certainly be a big spike in anti-porn campaigns by politicians seeking to score easy culture war “wins.”

FSC, Industry Stakeholders File Lawsuit to Halt Indiana's Age Verification Law

Free Speech Coalition (FSC) and several industry stakeholders filed a lawsuit in the United States District Court for the Southern District of Indiana on Monday, aiming to block the state’s age verification law.

LiveJasmin Announces 2nd Annual 'International Cam Model Day'

LiveJasmin has announced June 15 as the second annual International Cam Model Day.

Religious Conservative Groups Use Age Verification Battles to Discipline Dissenting Republicans

Religious conservative leaders and publications celebrated the defeat of sitting Republican state Senator Michael Walsh in a primary election on Tuesday, boasting of the success of their efforts to target him exclusively because he voted against the anti-porn age verification bill they supported.

PurityVR Launches Through YourPaysitePartner

New paysite has launched through YourPaysitePartner (YPP).

F4F 'Flirt Summit' to Take Place in Vietnam, Model Contests Launched

Flirt4Free has announced Central Vietnam as the location for the 15th edition of its annual "Flirt Summit" event.

Great White Entertainment Joins Pineapple Support as Supporter-Level Sponsor

Great White Entertainment, the event company that produces the Sin City Fetish & Fantasy Halloween Ball, has joined the ranks of over 60 adult businesses and organizations committing funds and resources to Pineapple Support.

Show More