New Mastercard Guidelines – September 2022

Mastercard has announced new guidelines that will affect recurring donations. To help provide context, we’ve summarized the key changes and what Qgiv is doing to comply. 

For more, check out Mastercard’s official terms. Recurring payments are covered in section 5.4.

What are Mastercard’s new rules?

Starting September 22, 2022, anyone who charges recurring payments must provide:

• The full subscription terms at the time of subscription, including the amount and frequency of the billing
• An email or other electronic message immediately after the creation of the subscription and after every approved authorization that includes:
  • A transaction receipt
  • The subscription terms
  • Instructions for canceling the subscription
• An online cancellation method
• An email or electronic payment reminder at least seven (7) days in advance for any subscription that processes six (6) or more months apart (such as an annual subscription)

Do the new rules apply to recurring donations?

Yes. As of March 2022, Mastercard defines recurring donations as subscription services.

What is Qgiv doing to comply with the new rules?

Qgiv is creating a new email notification for supporters with recurring donations that process six (6) or more months apart. The reminder will be sent seven (7) days before they’re charged.

We will release the new email notification in September 2022. Qgiv already complies with the other rules.

Why did Mastercard make these changes?

Let’s be honest: sometimes supporters set up recurring donations by mistake. That can cause confusion for donors and headaches for you. By requiring processors to clarify the terms of recurring payment subscriptions and to offer an easy way for supporters to cancel, Mastercard hopes to reduce processing costs, disputes, and chargebacks related to recurring payments that people may not ultimately want.