• Ruth Harpool, AAP, APRP, CTP

Mastercard Extends New Requirements Deadline for Recurring Transactions


CampusGuard Payment Advisory Services strives to keep you informed about upcoming changes in payment regulations and requirements that could affect our clients. The effective date for one of those changes is quickly approaching.


Mastercard is reclassifying recurring donations received by nonprofits as subscriptions, effective March 21, 2023.


On this date, recurring donations made with a Mastercard will be classified as “subscription services.” The changes will impact foundations/philanthropy/development offices, radio and TV fundraisers, athletic fundraisers, or any entity that stores a Mastercard, token, or full card number that manually or automatically charges the cardholder on a recurring basis.


In part, the new regulations require:

  • A confirmation email at the time of enrollment that includes the terms of the subscription and instructions on how to cancel the subscription.

  • An emailed receipt after every successful billing that includes instructions on how to cancel the subscription.

  • Provision of an online cancellation method.

  • Recurring payment plans that bill less frequently than every six months must provide a notification with the terms of the subscription and instructions on how to cancel the subscription. This notification must be provided no later than seven days and no more than 30 days prior to the billing date.


The original effective date of this requirement was September 22, 2022, however Mastercard recently extended the effective date to March 21, 2023. Since many in the nonprofit sector were largely unaware of the requirement changes, this extension gives your institution additional time to assess your solutions and service providers in this area and prepare.


A gift of time from Mastercard. Yippee!!


No…it’s not exactly the type of gift we’d all like to receive from one of the largest card brands in the world. Since the original effective date seems to have been a well-kept secret, the delayed effective date affords your institution some additional time to prepare.


I encourage you to reach out to your card processor for more information, and to check out the Mastercard transaction processing rules. The Nonprofit Alliance, an organization that provides services to nonprofits, has posted insightful information about the Mastercard requirements.

If you are unsure as to what questions to ask your processor or third-party service providers in preparing for this impending change, please reach out to your CampusGuard CRM or me directly to find out how Payment Advisory Services can help.

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