*UPDATE* In light of COVID-19 Visa has removed the enhanced statement descriptor requirement. Stripe posted information on our Support site about these rules earlier this year. Below is a guide to help you navigate the changes you need to make to be compliant with the rules changes. As always, if you have additional questions, contact Stripe Support.
I offer a subscription that does not have a free or promotional trial. Do these changes apply to me?
No, these rule changes do not apply to you.
I always offer coupons to new customers, does that count as promotional?
No, if you offer every new customer a discount regardless of the subscription type, these changes do not apply to you. Only businesses that offer free or promotional trial subscriptions (such as seasonal offerings) need to comply.
If you do offer free or promotional trial subscriptions, you will need to comply with the following requirements (each discussed in further detail below):
Obtain express consent prior to collecting customer payment information
Email customers with a reminder at least 7 days before the trial subscription converts to paid
Provide customers with enhanced receipts at the commencement of the trial
Add an enhanced statement descriptor to flag the commencement of the paid period [Recommended]
Provide customers with a digital or SMS cancellation method
Visa has also published a FAQ that includes a Quick Reference Card that summarizes the new requirements. Note that additional requirements apply for EU customers -- see "Additional requirements for users in EU" section below.
You must disclose the following information and obtain express consent to entering an ongoing subscription service for recurring payments, prior to collecting customer payment information for the purposes of a free or promotional period trial:
Details of the goods and services provided.
The start and end date of the subscription.
The length and price of the free or promotional trial period.
The cost of the subscription after the trial period ends.
The number of reminders that will be sent prior to billing (note that a trial-ending reminder email is required at least 7 days before the end of a trial period).
The cancellation policy, including the steps a customer must follow to cancel a subscription.
The date on which the customer can expect to be billed, for example, if it will be the same date of each month.
To prevent charge disputes and ensure compliance with the card networks’ requirements, make sure your website clearly describes your subscription services, and especially your free or promotional trial offers. In particular, you will need to make sure that your customers understand when free or promotional trials expire, and how a customer may cancel prior to the commencement of the paid period. For an example of a term that includes this description, see the Subscriptions section of the Stripe Shop Terms of Use.
Please navigate to the product-specific pages listed below for more details on how to update your integration:
Once you enroll a customer for a free or promotional period trial, you will need to make sure that the receipts you issue to customers contain the following information mandated by the card networks:
Length of the trial period, including clear disclosure that the customer will be charged unless they take steps to cancel any subsequent transactions.
Transaction amount and date for the initial transaction (even if no amount is due) and for subsequent recurring transactions.
A link to a mechanism that enables the customer to cancel the subscription online or via SMS/text message.
It is important that your receipt contains the important information about the subscription and the free or promotional trial period. This information gives customers full visibility into their current and upcoming transaction details, which can help prevent surprises and future disputes.
Please navigate to the product-specific pages listed below for more details on how to update your integration:
Note: if you already have Receipts turned on and use Stripe Billing’s trials feature, we will automatically add the information to your Receipts.
Once you enroll a customer for a free or promotional period trial, you will need to make sure that the receipt you issue to customers contain the following information mandated by the card networks:
Length of the trial period, including clear disclosure that the customer will be charged unless they take steps to cancel any subsequent transactions.
Transaction amount and date for the initial transaction (even if no amount is due) and for subsequent recurring transactions.
A link to a mechanism that enables the customer to cancel the subscription online or via SMS/text message.
It is important that your receipt contains the important information about the subscription and the free or promotional trial period. This information gives customers full visibility into their current and upcoming transaction details, which can help prevent surprises and future disputes.
Please navigate to the product-specific pages listed below for more details on how to update your integration:
Note: if you already have Receipts turned on and use Stripe Billing’s trials feature, we will automatically add the information to your Receipts.
*UPDATE* In light of COVID-19 Visa has removed the enhanced statement descriptor requirement. While this is no longer a requirement per card networks, Stripe still recommends implementing enhanced statement descriptors. When a subscription converts from the free or promotional trial period to the paid period, you are required to include text in the statement descriptor that makes it clear that the trial period has ended. We recommend that you add TRIAL END or TRIAL OVER to the beginning OR end of the statement descriptor.
Note that:
This requirement only applies to the first paid charge (i.e. after the end of the trial period).
The statement descriptor field has a maximum of 22 characters.
Ensure that your product and service descriptions are short and succinct descriptors. 10 characters is the recommended product and service description length. You might want to review existing statement descriptors to align with this requirement and ensure you’re giving customers accurate information. You can set a shortened descriptor in Account settings to avoid truncation.
After you clean up your statement descriptors, decide how you want to convey the end of a free trial subscription. You can use *TRIAL END or *TRIAL OVER (requires *) but you need to decide if something more descriptive is better for your business.
Please navigate to the product-specific pages listed below for more details on how to update your integration:
Any subscription that begins with a free or promotional trial must have a mechanism to cancel electronically or via SMS. Stripe Billing users can begin to use the customer portal, which will host a cancellation/subscription management page to help you comply with this requirement. If you are interested, sign up here to learn more.
We believe that most customers access their subscriptions electronically and expect to have options to update or cancel their requirements through the same means. It is important to provide relevant information to simplify the process of cancellation for customers.
If you are a Stripe Billing, Checkout, or Receipts user, navigate to product-specific pages for more details.
If you are located in the EU, you will also need to:
Within 2 business days, provide the customer with confirmation of the establishment of the recurring payment agreement
At least 7 days before each recurring transaction, send an email or SMS notification to the customer to remind them about the key features of the recurring payment agreement if:
A trial period is ending.
More than 6 months have elapsed since the previous recurring payment.
The recurring payment agreement has been changed, including the amount of the recurring payment, the date of the recurring payment, or any other terms of the agreement.