Continuity subscription merchants offer a free trial of their service or product and bill customers after a certain time. For services, they usually process a payment after a one week or ten day usage period. Alternatively with products, they might complete the purchase when a customer keeps a free sample they were sent.
Who Uses Continuity Subscriptions?
Continuity subscriptions are common for software services, nutraceutical products, online streaming, and. Merchant accounts for continuity subscriptions are considered high risk because of high refund and chargeback rates.
- Software Service Subscription – Software as a service or SaaS is one of the largest industries that utilizes a subscription billing model . Although they often have salespeople reach out with offers of demos, most people want to interact with a new technology on their own and learn their ins-and-outs of a software over a test period. After the trial window software services will automatically bill and update with the type of paid account that the customer selected originally.
- Video Streaming Subscription – The video streaming industry generates an estimated $39 billion dollars in the USA alone. For the most part, the payment model is continuity billing. As mentioned above, from Hulu and Disney, to HBO Max and Netflix, all of the major streaming platforms offer a free trial and a subscription billing afterward. For new merchants interested in entering the space, be sure to find the best way to monetize your subscription while offering competitive rates.
- Food Delivery Services – The covid era gave rise to food delivery services in a major way. Now, grocery stores and private companies organize ways to get food sent to hungry customers. There are many types of food services from DoorDash to Green Chef, you can get fresh restaurant food, or premade dinners sent your way. But the underlying similarity is that these companies are continuity subscription merchants .
How To Cancel Continuity Subscription Merchants
If you are a continuity subscription merchant, you may come across customers that want to cancel their subscription . If so, it’s imperative to make the process simple and have a generous refund policy in place so you can avoid potential chargeback disputes.
If you’re a customer, you should first try to cancel your billing through the merchant that’s charging you. Go to your account and change downgrade to a free account or cancel the service altogether. Some malicious merchants might add steps to the process by making you call in to cancel or hide it in a difficult to find location.
If you can’t find where to cancel online, then write an email or message to their support team. Even if this is a message that’s embedded in their website on a contact page, be sure to log it by taking a screenshot before you send. If you don’t hear back then file a chargeback through your bank provider for the unapproved charges.
What Is Amazon Prime Continuity Subscription Merchant?
Amazon Prime offers the ability for merchants to sell their products using a continuity subscription model . This new type of billing is highlighted as a preference on the checkout page, and often comes with lower costs. The benefit for merchants is that they can count on more consistent transactions over time which make for steady revenue and brand loyalty.
Table of Contents
- - Who Uses Continuity Subscriptions?
- - How To Cancel Continuity Subscription Merchants
- - What Is Amazon Prime Continuity Subscription Merchant?