In recent years, there has been a growing trend for businesses to offer monthly subscriptions and recurring payment models for their customers. This value-added service is a win-win for the business and customer because it helps the business have recurring monthly sales while providing the customer with something they want or need each month.
Certain types of subscription and recurring payment plans are not considered high risk merchant accounts by providers. These are for recurring monthly charges for essential products and services, like monthly housing costs, insurance, and basic utilities.
However, as the number and range of products and services have grown for subscription and recurring payment models, so, too, have the risks for merchant account providers. As such, many businesses that are rolling out this sales model are discovering they need high risk credit card processing solutions.
Why? Quite simply because there are a number of risk factors associated with the various types of subscription and recurring payment models. One of the most common risks is the growing number of chargebacks initiated by consumers on non-essential purchases. They might have buyer’s remorse or changed their mind and no longer want the monthly product or service.
In some cases, consumers will also initiate what is referred to as friendly fraud. This is when the consumer knows they received the product or service, yet they call their credit card issuer and dispute the charges for their entire subscription and recurring payment plan. Unfortunately, most card issuers side with their customers over the merchant.
Another risk factor arises when certain questionable businesses in the industry do not provide clear payment terms and conditions for their monthly subscription and recurring payment plans. They might charge early cancellation fees, require a minimum monthly commitment period, and so on. If a customer cancels before meeting these requirements, they are hit with a huge charge on their card, which they will dispute.
Getting Approved by Recurring Payment Merchant Account Providers
Finding a merchant account provider who will work with you to help you find the best high risk solution is important. Here at Leap Payments, we are a top choice of many businesses, of all sizes, that use subscription and recurring payment models.
- We are the Experienced, Dedicated Recurring Payment Merchant Account Experts
- We know how to get your subscription merchant account approved.
- We offer customizable merchant account processing solutions for brick and mortar, mobile, and online businesses.
- There are never any hidden fees with our merchant accounts.
- We offer some of the lowest rates in the high risk
- Our customer support is available 24/7 and is U.S.-based.
- We provide chargeback protection and other benefits.
If you are getting ready to launch a new subscription plan for your business and need a Recurring Payment Merchant Account or have been rejected by another provider, please feel free to contact Leap Payments at (800) 993-6300 and speak with one of our Recurring Payment Merchant Account representatives today!
To learn more about these features and our high risk merchant accounts for recurring payment services or other high risk businesses,
Please Complete This Form or Contact Us At
(800) 993-6300 Today!