Mastercard announced new rules for recurring payments. Here is what you need to know: Mastercard has announced new rules around recurring payments that will affect recurring donations. The deadline for nonprofits to comply with these new rules is March 21, 2023.
We have summarized the main rules to stay compliant below along with what Funraise is doing to ensure all of our customers remain compliant.
Here are Mastercard's new rules
As of March 21, 2023, anyone who charges recurring donations must provide:
The full subscription terms at the time of subscription
An email or other electronic message that includes:
The subscription terms
A transaction receipt
Instructions for canceling the subscription
An email or electronic payment reminder for any subscription that processes 6 or more months apart (such as an annual subscription)
An online cancellation method
What is Funraise doing to comply with the new rules now?
Update Funraise transaction receipts when the transaction is part of a recurring subscription to include subscription terms - Frequency, Amount and a link to manage the subscription
Funraise will release a new system email notification that sends reminders to supporters 7 days before their recurring donation. The email will only apply to recurring donations that process 6 or more months apart and will not be customizable at this time.
Funraise will release the changes before March 2023. With these changes, all Funraise customers will be in compliance with Mastercard's rules automatically.
If you would like to learn more about these rules, you can read the full report from MasterCard.