The MasterCard Automatic Billing Updater (“ABU”) is an automated solution that helps to ensure uninterrupted service and uninterrupted payments by updating card-on-file (“COF”) information for recurring and nonrecurring payments. This program helps to reduce COF transaction declines due to changed account numbers and/or expiration dates.
The MasterCard ABU Service is available for Debit Cards beginning October 1, 2017.
The MasterCard ABU Service is required by MasterCard for all financial institutions that issue consumer and business credit and debit cards.
Cardholders generally have recurring payments or a COF set up with a merchant(s). When account changes are made to a cardholder’s account—for example, a debit or credit account number has been changed or an expiration date has been updated—cardholders often do not advise merchants about changed account information, which causes recurring payments to be declined as well as an inconvenience to customers.
The MasterCard ABU Service allows the updated information to be provided to participating merchants on behalf of the customer resulting in fewer declines. The service provides a convenience to customers so they do not have to contact each merchant with updated card information.
Yes. A customer can request to opt-out of this service by completing the MasterCard ABU Opt-Out Form located at www.thumb.bank or at their local branch. However, they would lose the abovementioned benefits.
No. The MasterCard ABU Service is only available at participating merchants. They can choose the frequency at which they check for updated payment information. To avoid late payments and penalties, customers must check with their merchant to ensure their card information has been updated.
No. Participation in this service is at each merchant’s discretion. Thumb Bank & Trust does not have a merchant list.
COF merchants that keep cardholder’s card numbers on file for recurring payments may include phone companies, cable services, utilities, music subscriptions, magazine subscriptions, gym memberships, Insurance companies, recurring charitable donations and more.
Automatic payments will be declined and merchants may charge customers a late fee.