Mastercard recurring card payment requirements

October 2022 Update: Mastercard recently modified its recurring subscription requirements and standards to become best-practice recommendations for most nonprofits or charity merchants that process recurring payments or have sustaining gifts. These standards become requirements ONLY for nonprofit and charity merchants that are identified for at least four months in the Acquirer Chargeback Monitoring Program (ACMP) or similar program. ACMP is a Mastercard program that identifies and mitigates high chargeback rates among merchants. Merchants (including nonprofits) enrolled in ACMP or a similar Mastercard program are still required to follow the new rules.

For more information, see the Blackbaud Mastercard compliance page and the Luminate Online Knowledgebase.

As always, it is best to work with your organization's legal advisor, who is familiar with your practices and constituents, to determine your obligations under the card rules and other requirements to which your organization may be subject. Nothing in this help topic should be construed as legal advice or a legal opinion on any specific facts or circumstances.

Why did Mastercard update the rules?

Mastercard’s subscription rules are changing to provide clarity and transparency to consumers and to discourage the use of billing practices perceived to be harmful or deceptive. Mastercard has confirmed that in some cases recurring gifts, pledges, and donations are classified as subscriptions and fall within the scope of the new rules.

How do I get ready?

If applicable to your organization, the Mastercard deadline for compliance is March 21, 2023. We created this resource to provide examples and instructions for how each requirement can be met using Luminate Online functionality. To read recommendations, expand each requirement below.

Contact Blackbaud Support if you have questions or need assistance.

What do I need to do?

All of the Mastercard Revised Standards regarding recurring subscriptions are now only best-practice recommendations for any nonprofit or charity merchant that utilizes a recurring payment plan. However, all standards become requirements when a nonprofit or charity merchant that utilizes a recurring payment plan is identified for four months or more in the Acquirer Chargeback Monitoring Program (ACMP) as an Excessive Chargeback Merchant (ECM), a High Excessive Chargeback Merchant (HECM) and/or an Excessive Fraud Merchant (EFM) within the same audit period.

If applicable to your organization, review each requirement and recommendation, and complete any necessary actions. The Luminate Online 22.5.2 release contains enhancements to simplify compliance, but some requirements need your attention.