The continuity Subscription model has become one of the most successful business structures within the last few years. This is, in part, due to the convenience of paying for and receiving the goods and services. But what is more inconvenient than mailing a check or dealing with the intricacies of PayPal? Without the ability to accept credit card payments quickly and securely, your subscription business will suffer.
On top of this reality, the subscription or recurring structure is not considered a traditional category by acquiring banks. Essentially, this means that, as the business owner, you will have a harder time securing merchant processing in comparison to traditional, low-risk businesses.
We are in digital age. Digitalization is engulfing the world at a very fast pace. At such a time, the corporate world has also amalgamated digitalization into its market offering. In a sea full of businesses, to stand out, firms are now giving their customers the option to pay online. This not only adds to customer satisfaction but also leads to an increase in the demand for the company's product or service. Due to excessive chargebacks, high volume of sales, and possible fraudulency, banks have deemed this space as high risk. Thankfully, issues such as these can be mitigated or prevented. Finding a merchant account provider for your subscription-based company is the first step to processing transactions quickly and efficiently. These services have the capability to put structures in place to allow for continuity billing, a seamless gateway integration, and risk mitigation tactics.
One of the most controversial features many continuity businesses provide is negative option processing. In essence, this feature is a recurring charge or subscription that is set in place and will continue to renew until an action on the consumer’s end is taken. Negative option processing is common practice in the subscription industry. Not only is this feature convenient for the merchant, think steady revenue, it also brings convenience to the consumer who does not have to manually renew the subscription or service each period. However, this style of recurring payment can be viewed as a negative when it comes to finding a merchant account as banks see this service as a potential risk.
Whether you’re offering a trial supplement, a clothing subscription box, or another service, your customers expect to pay with credit and debit cards. Your success hinges on the ability to accept major card types without a hitch. Partnering with a reputable high-risk merchant account provider is necessary to support a continuity or subscription style business. Dough Merchant Services not only focusses on high risk industries, but we work with a plethora of subscription-based businesses that are uniquely positioned with the infrastructure and mitigation to provide success.
Thereby, the demand for health and beauty products trial and continuity merchant accounts have increased in the past couple of years. However, if your business falls under this category, you will know about the difficulties of finding a secure merchant account.
Since health and beauty products trial and continuity is marked by heavy chargebacks amongst clients, it is dubbed to be a high-risk business by credit card processors. This makes it difficult for such companies to open a merchant account via the standard methods.
We are here to provide you with a solution. Our company allows high-risk businesses to open a merchant account. We will make sure that you can accept credit cards online or via phone or mail.
Are You Looking for A Merchant Account for Trial & Continuity Billing?
Trial and continuity merchant accounts are in huge demand due to Ecommerce merchants from across the world. But if you have applied for one before, you will be aware of the difficulties involved in securing a reliable merchant account for your business. Due to a high frequency of chargebacks, recurring billing and other considerations obtaining the support of underwriting banks becomes a tough ask.
There are many businesses that fall under trial and continuity billing such as:
- Dating Websites
- Collection Agencies
- Adult websites
This list is not exhaustive, but if your business falls under this umbrella, we can help you with all your merchant account requirements.
If your business is mostly conducted online, then our safe and secure terminals are a must for you. Our gateway setup is easy to install and does not require much time. We provide a range of terminals starting form low cost terminals to the latest touch screen high speed virtual terminals.
You can easily establish recurring billing, subscription and membership processes without any hassles. It also has the option of tracking transactions and furnishing detailed reports.
We can provide virtual terminals for processing any kind of credit card payments such as Visa/Amex/MasterCard/Discover. We also provide the option of ACH processing and check processing to ensure convenient and smooth payment processing for customers.
For the tech savvy customers, we also provide iPhone and Droid mobile apps to facilitate payments on their mobile phones.
Has your business been denied by other credit card processor?
As trial and continuity billing is considered a high-risk business, there is high chance that companies like PayPal will turn down your request for merchant accounts.
But this is where we can help. We are dedicated to the cause of providing merchant accounts for high risk businesses as we understand the complexities involved in running the business.
We have established strong partnership with many multiple underwriting banks that are willing to come onboard and help you with all your needs.
Our chargeback management software ensures your credit card payments are in line and there is no fraud. This eliminates the risk of account termination.
Is your business a start up?
As a start-up does not have a proven track record, it is considered a high-risk entity. We analyse the details of your business model to understand the high risk vs. low risk level. Based on this analysis we arrive at the rates.
A business that is already in existence and has a history of transaction will be charged a lower rated due to the lower risk levels.
Even if you are new corporation that has recently comes into existence, you will find our services to be affordable and lower than our competitors.
Finding a merchant account for trial offer products that allows you to later bill the full amount to the same account is harder than you might think. This is a feature which many standard account types don’t offer, so if you sell a product which includes a trial period and you want to avoid using high-fee credit card processing options like PayPal, you will need to find a merchant account provider that can deliver what you need. In particular, these types of account have been attracting attention from the FTC recently because what are often advertised as ‘free’ trial offers often turn out to be not so free, as dishonest merchants charge billings to the customer’s account that were not agreed to up front.
These problems are especially rampant on the Internet, and the FTC isn’t alone in trying to reduce the incidence of problems – even credit card companies themselves are trying to get rid of merchants who don’t play by the rules when it comes to trial offers, continuity payments and recurring billing products.
The sum of all these issues is that even honest merchants who want to use trial offers now find it extremely difficult to get the right kind of merchant account from a traditional provider. But by going through a brokering solution such as
Dough Merchant Services, you can quickly and easily get access to plenty of solutions that are designed specifically to deal with your kind of business. Dough Merchant Services specializes in matching up high risk businesses with merchant account providers who can meet their needs. This is even true of businesses who need a merchant account for trial offers or recurring billing and who also want to sell high volumes. Simply finding a merchant account for trial offers can be hard enough without factoring in the special requirements of high-volume products. Going through Dough Merchant Services takes a lot of the hassle out of the process.
What considerations should you make when deciding on the right merchant services provider for your business? Reliability is one key factor to look out for. You don’t want your credit card processing to fail you just after the launch of a new big product. Reliability and trust are also important due to the current concerns of the FTC and credit card companies – it pays to make sure not only your business, but also your merchant account provider, are playing within the rules to avoid any legal problems.
Reliability is also key because it allows you to maintain consistent cash flow, which we all know is incredibly important to running a business – especially a growing business or a brand-new start-up.
If you’re a high-volume merchant, you’ll want to find a specific merchant account designed for your needs so you don’t end up losing a large chunk of your margins on every transaction. The key to high volume against is very low transaction fees – you don’t have to worry so much about monthly fees or set-up fees.