If you own a subscription business, you should apply for a merchant account with a bank that specializes in high-risk industries. Subscription businesses are considered high-risk because they tend to experience a high chargeback rate. As a result, banks tend to be wary of offering these merchant accounts, discover more about this article here  from the comfort of your home.

 

Banks view recurring subscription merchants as a high risk and may restrict their services as a result. This is why it's imperative to work with a merchant account provider who understands the nuances of recurring billing and can help reduce chargebacks. The right provider will be able to offer a streamlined gateway and a high risk tolerance.

 

The payment processor you choose for your subscription business should be able to support the recurring payments that your business receives from customers. Many subscription merchants experience a challenge finding a suitable payment processor. There are very few payment processor networks that specialize in subscription merchant accounts. This means that your business will have to choose and keep a payment processor that works with your business.

 

Subscription and continuity programs are a great way to build recurring revenue streams. Many consumers value speed and convenience when shopping online. As a result, many payments for ecommerce transactions are made using mobile wallets. The rise of mobile wallets has spurred the development of alternate payment methods, including Apple Pay and Samsung Pay. PayPal has also gained attention as a convenient alternative payment method.

 

Merchant accounts for subscription businesses are particularly high-risk, so merchant accounts with this type of account should be handled with special care. For example, Bankcard offers payment management solutions tailored to high-risk industries. Its rates are competitive and its service is tailored specifically to the needs of subscription businesses. In addition to accepting credit cards, these merchant accounts will also provide you with the tools you need to track payments.

 

The key to success with a subscription model is to stay top-of-mind, click to read more about this subject here!  Remember that the goal is not to close the sale, but to provide value month after month. Because customers are charged on a recurring basis unless they cancel, it is important to show customers that they are getting the most value from your service.

 

Subscription merchant accounts can help subscription businesses avoid chargebacks, which can negatively impact their acceptance. Chargebacks can be time-consuming and expensive for merchants. Credit card processors usually add additional fees when customers dispute a chargeback. Subscription merchants who provide their customers with open and transparent policies can protect themselves against chargebacks. By keeping their customers informed, they will be more likely to talk to a merchant instead of filing a chargeback.
Check out this post that has expounded on the topic: https://en.wikipedia.org/wiki/Merchant_account_provider.