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Visa Free Trial Mandate Overview

Zuora Product Team

[Last Update: 4/20/20] 

 

“The effective date of the requirement to support an enhanced descriptor for the first transaction at the end of a trial or discounted promotional period will be postponed to 17 April 2021. Acquirers do not need to submit waiver requests for delaying implementation of the enhanced descriptor during this time.” More information here 

 

VIsa Mandate Zuora.png

[UPDATED 04/20/20 with new link and screenshot above]

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For Customers Facing Large Amount of Chargebacks on Free Trial Subscription Products

As of April 18, 2020, Visa will be updating Dispute Conditions under section 13.5 - Misrepresentation. For reference, see the official Visa notice here. This reminder is designed to help protect Card Holders “by providing clearer information, enabling them to identify, recognize and take on subscription transactions, and reducing the number of transactions that result in disputes.” If you are not facing a large amount of chargebacks on your free trial subscriptions, you are most likely in good standing and will not be heavily impacted by this reminder. 

 

If you are currently facing issues with a large amount of chargeback or disputes with your free trial subscriptions, Zuora recommends working with your merchant service provider to investigate some mitigation options. Some of Zuora’s functionality may help by enabling merchants to comply with some of Visa’s reminders. This includes the following items:

 

  • Easy Cancellation
    • Visa does not have explicit requirements as to what they define as an easy cancellation. Zuora recommends cancellations should be clear for the users and self-serviceable. 
  • Electronic Notification of Trial Period
    • While Zuora does have a notification feature, because free trials are not billable items, we recommend merchants make sure they have adequate electronic notification system setup via their CRM or marketing platforms to notify cardholders prior to the payment. Please be sure to read the Visa flyer for more details.   [UPDATED 01/21/20]
  • Merchant Name Included in Transaction Description. (This requirement is being delayed until April 18th, 2021) [UPDATED 04/17/20]
    • Contact your credit card payment processor to confirm Doing Business (d.b.a) is clear and easily identifiable to your merchants. 
    • Offer soft descriptors through some of our partnered gateways. This can be done in either Payment Gateway Setup or via Payment API

 

Zuora is committed to helping you win in the Subscription Economy. We’ll continue to work closely with our payment partners and monitor the situation as well introduce features to help mitigate chargebacks.

3 Comments
Community Manager

The post has been updated with new information. Please see the original post above.

Community Manager

The post has been updated with new information. Please see the original post above for 04/17/20 updates.

Community Manager

This post has been updated with new information - updated link and screenshot. Please see the original post above for 4/20/20 updates.