Q: Are card issuers required to issue an opt out notice to consumers for the Visa Account Updater and MasterCard Automatic Billing Updater programs?

A: No. It is WBA’s understanding that while card issuers are required to participate in the Visa Account Updater and MasterCard Automatic Billing Updater programs (programs), they are not required to notify customers of these programs nor provide an opt out notice.

While notice may not be required by Visa or MasterCard, WBA recommends that from a customer service standpoint, some form of consumer notice would be a good practice to follow. Furthermore, while a change in terms notice would not be required, financial institutions affected should still consider updating their terms and conditions to include the service. Financial institutions should also be aware that while an opt out notice is not required, it is WBA’s understanding that card holders do have the ability to opt out of these services by request.

WBA has also been asked whether the programs affect a financial institution’s privacy and opt out requirements under Regulation P. Because of exceptions to notice and opt out requirements for maintaining or servicing a consumer’s account as part of a private label credit card program financial institution’s should not need to revise their privacy policies or opt out notice procedures.

Note: The above information is not intended to provide legal advice; rather, it is intended to provide general information about banking issues. Consult your institution's attorney for special legal advice or assistance. Questions? Email the WBA legal team.