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 support@netbilling.com for additional details.

Related:  

Copyright © 2025 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

Ofcom: Age Assurance Going Live Across 'Thousands' of Porn Sites

U.K. communications regulator Ofcom said in a statement Thursday that providers of online pornography are implementing age assurance across “thousands of sites” accessible in the U.K., in response to Ofcom’s Online Safety Act (OSA) enforcement program.

ASGMax Debuts 'Roleplay' AI Chat Feature

Alpha Studio Group (ASG) has introduced the ASGmax Roleplay AI chat feature.

XBIZ Miami's Host Hotel Sold Out, General Registration Now Open

Guest rooms at XBIZ Miami’s exclusive conference venue, Nautilus Sonesta Miami Beach hotel in South Beach, are now completely sold out.

Adult Industry Educational, Networking Platform 'Imperfectly You' Launches

Imperfectly You, an educational and networking platform for adult industry workers, has officially launched.

Segpay to Launch News Network for High-Risk Merchants

Segpay has announced that it will launch the Segpay News Network (SNN) on April 15.

Age Verification Watch: Patching the Holes

This roundup provides an update on the latest news and developments on the age verification front as it impacts the adult industry.

Pineapple Support to Host Autism Spectrum Support Group

Pineapple Support is hosting a free online support group for performers and creators who are, or suspect they may be, on the autism spectrum.

ImLive Launches Revamped Member Loyalty Program

Cam platform ImLive has revamped its member loyalty program.

GoFundMe Set Up for Danny Ferretti's Medical Expenses

A GoFundMe campaign has been set up for Fangear founder Danny Ferretti, who requires extensive lung surgery.

Byborg Acquires Cuties AI

Byborg Enterprises has acquired adult artificial intelligence startup Cuties AI.

Show More