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Continuity-based businesses are some of the most well-established companies in the world. No matter what product or service they sell, when a customer places an order, the same item, or collection of items, are automatically shipped and billed each month until the customer decides to cancel the service.
This not only saves your customers time, but it also means that you can rely on a steady customer each month.
However, for new business owners, finding a continuity merchant account that allows for this business model can be extremely challenging. While they are quite common, continuity-based businesses that rely on this strategy each month are deemed as a high-risk merchant by most traditional banks and financial institutions.
Because of this, most companies that operate this way are often faced with rejection when seeking credit card processing assistance.
If you’re a business owner, selecting a credit card processor is often one of the most challenging steps of the process. Whether you’re unsure of how much you should be paying in fees or what type of equipment you need, this aspect can be very confusing for many business owners.
Fortunately, with a continuity merchant account provider you trust, you can take back your time and trust that your business will be well taken care of.
While continuity billing models are one of the most common, the high risk of chargebacks and billing scams can make them appear to be high-risk to most credit card processing providers. As more chargebacks or billing scams occur, providers may close or freeze your account, making it impossible to conduct business.
To avoid this, you may want to consider asking your customers not to request a reversal of charges if they have forgotten about their recurring payment.
To avoid any confusion or frustration among your customers, be clear and concise with the services you are offering and the terms in which you are offering them. By clearly providing details, conditions, and contact information, you can help your customers better understand what they are buying into rather than canceling their services.
If a customer does want to cancel, it’s crucial that you make the cancellation and refund process as seamless as possible to keep your account in good standing rather than risk chargebacks.
Additionally, when a customer makes a purchase, be sure to confirm every detail of the order with them. This includes providing them with terms of purchase, pricing, and cancellation policies so that they have a clear understanding of what it is they have bought. You can include this information on a separate web page, email, or via phone confirmation.
Lastly, if your business model offers free trials for new customers, it’s critical that those trials remain free and do not include any hidden terms or conditions. This can significantly reduce customer dissatisfaction and decrease the number of chargebacks.
Complying with all of these points can not only increase the overall effectiveness of your business, but it can also significantly increase your chances of obtaining approval from merchant account providers.
If you’re ready to partner your business with a continuity merchant account you can trust, apply with us today.
