Consumers need clear information before they buy, not surprises after their purchases arrive. They should be allowed to decide if they are willing to wait several weeks for a package to transit through international hubs or if they want to buy locally.
That’s why Mastercard is introducing new standards that strengthen transparency around merchant shipping and return locations and policies, so consumers can make more informed purchasing decisions.
“Clear expectations are fundamental to consumer trust,” says Jared Levin, senior vice president, Mastercard Franchise Architecture & Standards. “By increasing transparency around merchant location and returns, these standards help consumers make informed choices and strengthen confidence in e-commerce.”
The updated requirements call for disclosure when goods will ship from a country different from the cardholder’s delivery address. It also establishes who is responsible for any delivery-related costs beyond the agreed transaction amount, such as duties, tariffs, additional taxes and customs fees.
Likewise, if an item has to be returned to another country, merchants must make that clear before the customer buys it. This can help them factor in potential shipping costs and refund time frames before they buy. Under the new requirements, merchants that accept Mastercard must provide these details.
Importantly, the standards also strengthen consumer protections when merchants do not make these required disclosures or work to resolve issues cropping up from returns. If a merchant fails to provide an appropriate remedy — such as accepting the return of goods and providing a full refund without imposing additional return costs on the cardholder — the merchant will be held responsible when a cardholder contacts their bank to raise a claim. Mastercard monitors merchants with excessive chargebacks, and the worst offenders may be subject to penalties and potentially even be denied access to the electronic payments network.
For merchants, these changes build on e-commerce practices evolving as cross-border transactions continue to rise. Many major online marketplaces already inform shoppers where their purchases are being shipped from, for example. The requirements may be a bigger adjustment for smaller retailers who only occasionally ship cross-border, but card issuers will not be able to submit chargebacks in these situations until April 2027 to allow merchants time to adjust.
We believe these policies may help consumers make better choices. Had I known where my son’s socks were shipping from, I could have decided if they were worth the wait. Instead, I felt misled and will think twice before buying from that merchant again.
And within my experience lies a valuable lesson: The merchants who will thrive in the next era of e-commerce are those who understand that trust is the most valuable product they ship.
