The new policy is based on existing consumer protections Visa has had implemented in 2011
Visa revealed it will implement a new policy, enabling consumers to have greater transparency, choice, and control over their subscription payments.
According to the statement, sellers who offer free trials as part of subscription services will now be required to provide clear information that allows users to identify, recognize and act on subscription transactions. It is expected to decrease the need for disputes.
This way, cardholders will receive immediate confirmation of the terms of the agreement via text or email
What is more, they will get proactive notification of any future payments at the end of the trial period. This way, they can make a conscious decision about whether they’d like to continue the subscription.
Besides, sellers are mandated to provide instructions on how to initiate a cancellation, according to the new policy.
Visa stated that the new policy goes into effect on April 18, 2020. It applies to free or introductory offers that roll into an ongoing subscription for both physical and digital goods.
We’ve reported that Visa has announced its partnership with a Nigeria-based startup called Paga. According to their agreement, Paga users will be able to carry out transactions within the Visa global network.
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