Introduction
It is very important for you to choose the correct merchant account for your subscription-based business. The capacity to accept main credit cards for your services and business gives your ecommerce business the credibility and also, expands the customer reach. Also, you ought to know that, all the payments processing accounts are not similar. Just imagine, a luxury car and a truck are both wheeled vehicles, but it will be a stupidity to haul bottles of fertilizer in a car. So, similarly, in a subscription-based businesses require a merchant account, which is custom-made for recurring transactions of bills. Continuity business or continuity merchant account business require the delivery of truck version for the processing of accounts. There are several good platforms like Pay-Kings, which knows the nuances of subscription billing and can match you with a credit card processing firm which offers a merchant account made for your requirements.
Continuity Subscription Merchants at High-Risk
In a payment processing, the risk factor is based not only on what and how the product is sold. Continuity merchant subscription accounts are known as high-risk because of the way they sell using the recurring payments. Most of the standard processing firms prefer to work with businesses that are low-risk and that which fit the traditional category, so it is super pivotal to find a subscription merchant account for billing that meets the needs of your business. Now, subscription-based businesses are that kind of business which offer the services and products one recurring billing cycle. And, then, the issue is that of over time, in which consumers take to change their ideas or even forget that they have bought subscription. So, this leaves the business person with 2 big issues that of chargebacks and fraud.
Chargeback and Fraud Issues
One of the most important things you should know is that, high chargebacks are basic for continuity subscription merchants. A consumer can ask for a chargeback for a buying up to 180 days after they got the complete product. Besides, if that, product is a 6-month subscription, then the clients can still dispute the payments for up to 180 days after they get the final instalment – which is a complete year after the original purchase. Moreover, the disputes from disappointed customers, like also known as friendly fraud contributes to excessive chargebacks. And, this will mostly happen when a customer will make a purchase, get the product, and then dispute with the charge claiming not to have received the item or the transactions were not authorized charges, most of the time keeping both the money and product. Whereas in fraud problem, continuity billing scams provide subscription businesses a bad reputation. So, this is the kind of fraud which can happen or happens when a customer authorizes small transaction and then knows that they are being charged on a continuous basis for the services which they did not purchase.
