According to some research, the continuity subscription market will grow to $7,813 million in the United States by 2025.
Because of this, many companies are switching their business model to a continuity structure. Because of this, they need a continuity credit card processor.
Keep reading to discover more about how to get the most from your processor and what you need to know before you choose one for your business.
A continuity credit card processor is used for businesses that use recurring payments or subscription billing. The consumer will be charged monthly for services or products that they’ve signed up to receive.
You’ll have to define your terms and conditions, and a consumer will have to accept those terms. The billing will only stop when they unsubscribe. Businesses can use this payment method, and they don’t have to be a high-risk merchant.
These businesses are normally high risk because some of them will misuse this type of business, and it can lead to billing scams that will lose the customer’s trust. It will also charge customers for things that they weren’t aware that they might be charged for, which means that there can be a lot of chargebacks.
Common businesses that will use this type of merchant account are food delivery, newspapers, magazines, subscription boxes, membership sites, food delivery, or streaming accounts.
With this type of business model, then the consumer will be charged monthly or annually until they opt out of service or unsubscribe from it. Any business can use this.
While this can be great for bringing in stable revenue, many businesses will charge for products or services that they aren’t providing to a customer. However, a dependable merchant account provider will help reduce the risk that is associated with risks and chargebacks.
Subscription-based businesses can use the right merchant to overcome these risks.
A good payment system will help reduce these risks and make it operate like a traditional banking system. The customer’s card will get charged with the recurring payment until they cancel their subscription.
However, merchants need to inform customers of the transactions so that they are aware of them. If they don’t, they could run into legal issues.
However, a lot of customers will claim that there are issues with these systems, which can include the number of chargebacks. If there are too many chargebacks, a bank could lose its money, so these models are seen as risks for banks.
While it’s great to have reliable monthly income, customers could cancel their subscriptions at any point. You need to ensure that you have a good way to retain customers.
You’ll need to account for some customer turnover, but you also need to figure out how you will keep your customers coming back for more. There are many different ways to keep your customers, and it can start with offering good customer service or offering new and updated products and services.
And while it might seem counterintuitive, make sure that you have a clear cancellation policy. If there isn’t enough information, your customers might start to panic and cancel their subscriptions. Or even worse, they may never even sign up.
You should search for the right merchant account but there are many factors that you’ll want to consider before you sign a contract with them. For example, how is their customer service?
When you’re relying on them to get your income and deal with customers, then you want to ensure that you’ll be able to reach out to someone if something isn’t working. If they don’t have anyone who can help you or are ignoring your requests for initial information, then you may want to find a different processor.
You’ll also want to ask about their fee structure. You don’t want to sign a contractor who has hidden fees and find out that you’ll end up owing even more money. Keep in mind that while the fees might not seem like a lot while your business is growing, as you get more sales, it will start to add up.
Those fees that weren’t important beforehand could cost you thousands of dollars each month for every renewed subscription. This can be even worse if you have hidden fees that you didn’t know about until it’s too late.
Lastly, make sure that your merchant can use technology that integrates easily with your business tools. If you have a merchant that uses different tools, then you’ll have to pay even more to get a tool that you wouldn’t normally use.
Make sure that you have some values that are aligned and that you fully understand the contract and any fees. Most of these merchants will require that you sign a long-term contract, so you should know everything about the company before you sign that.
There are normally fees associated with breaking those contracts, so find a processor that you enjoy working with
These are only a few things to know about getting the most out of your continuity credit card processor, but the key is partnering with the right company.
We know that choosing the right merchant can be challenging, especially when you are a high-risk business.
Check out our website to learn more about how we can help high-risk businesses, just like yours!