How technology is transforming the casual dining industry
The amendments to these rules are designed to simultaneously improve transparency for cardholders and to decrease chargebacks.
Following the changes, merchants that set up RTAs with cardholders will be required to do the following:
The following operating principles will need to be applied to transactions that form part of RTAs:
1. Entering a Recurring Transaction Agreement
A merchant must provide the following information to the cardholder prior to obtaining their consent:
2. Confirmation of a Recurring Transaction Agreement
Once the cardholder has provided their consent for an RTA, the merchant must provide confirmation of the RTA within two business days, using the agreed method of communication.
3. Notification of changes to a Recurring Transaction Agreement
A merchant must notify the cardholder, using the agreed method of communication, at least seven working days prior to the RTA payment being processed in any of the following situations:
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