Requirements for unscheduled payments
Last updated: February 26, 2025
To promote an enhanced and transparent customer experience, card schemes have set disclosure requirements for when cardholders are authorized for unscheduled payments with stored card details.
Unscheduled transactions are transactions that use a stored credential for a fixed or variable amount that does not occur on a scheduled or regularly occurring transaction date. For example, where the customer consented for the merchant to initiate one or more future transactions.
The cardholder must:
- Expressly consent to sign up for you to take unscheduled payments from their account.
- Agree to you storing their card details for this purpose.
When signing up to store their card details on file, you must show terms and conditions to cardholders. These must include how the card details will be used. For example, an automatic balance top up for a mobile phone when it falls below a minimum amount.
In the EEA, you must notify the cardholder of any change to the transaction amount or any other terms of the agreement at least two working days before the change.
After each successful authorization, you must send cardholders a receipt or confirmation stating the transaction amount and transaction date.
For the first financial transaction, a descriptor indicating the end of a trial period is recommended in the Merchant Name field. For example, 'mobile balance top up'. Learn more about dynamic descriptors.
You must offer cardholders an easy way to cancel an agreement for you to take unscheduled payments from their account. You must disclose this when they sign up for the agreement.
In addition to the general requirements, merchants in Europe must also meet specific requirements.
You must provide the cardholder with the following information:
- Your name as the merchant
- The amount of the transaction (even if it is zero), and the amount and timing of any subsequent recurring transactions
- The length of any trial period, introductory offer, or promotional period
- How the cardholder will be charged, including the last four digits of the card number
- How to cancel the agreement and/or any subsequent recurring transactions
You must display this required information to cardholders in both of the following places:
- The webpage where payment credentials are requested and entered
- The checkout webpage
Additionally, you must:
- Provide subscription notification within two working days of setting up the agreement.
- For unscheduled payments, notify the cardholder of any change to the transaction amount, or any other terms of the agreement, at least two working days before the change.
Information
This reflects the EU regulation on consumer rights and complaints.