The continuity sector, known for its model of recurring product sales, is frequently categorized as high-risk. This categorization presents difficulties for these companies in securing a dependable payment processing partner. SecurePay Online is committed to offering specialized merchant account services tailored to the specific requirements of the continuity industry.

Typically, businesses in the continuity sector involve membership and subscription-based offerings, predominantly sold online or via mail-order/telephone-order methods. The sector’s high incidence of chargebacks and returns is a key factor in its high-risk merchant status.

Many payment processors may initially onboard merchants operating on a recurring billing model but often choose not to continue their services with them. This situation leaves these merchants with a customer base but without a way to process payments through credit or debit cards. Furthermore, these processors frequently limit merchants’ access to their customers’ billing data, necessitating the re-registration of customers.

For businesses based on memberships or subscriptions, locating an appropriate payment processor is a significant hurdle. The number of processors and financial networks prepared to manage these types of transactions is quite limited, emphasizing the importance for merchants to establish and sustain a stable relationship with a payment processing partner.

What are Continuity Merchants?

Continuity merchants are businesses that have the authorization to charge customers regularly for ongoing products or services. In this arrangement, customers are billed automatically at set intervals, making them responsible for payments until they choose to cancel their accounts.

Many continuity programs begin with an introductory offer at a low cost or for free, allowing customers to try the product or service. Unless the customer proactively cancels, services or product deliveries continue, and after the introductory phase, customers are typically billed at full price. While these billing arrangements are disclosed at sign-up, most merchants do not send subsequent reminders, often resulting in high rates of refunds and chargebacks in the continuity sector.

Types of Card Processing for Continuity Merchant Accounts

The continuity industry includes a variety of businesses that utilize recurring billing merchant account services, such as:

• Media Services Merchant Accounts: For access to online entertainment like TV, music, or print media.
• Telecom Services Merchant Accounts: Offering contract-based or month-to-month service plans.
• Software Services Merchant Accounts: Monthly rebills for various software, including marketing and support products.
• Membership Club Merchant Accounts: Yearly fee-based retailers offering discounts.
• Extended Warranty Merchant Accounts: Ongoing support through warranty plans from manufacturers or repair services.
• Nutraceutical Merchant Accounts: Regular shipments of products like weight-loss supplements or energy boosters.
• Subscription Boxes Merchant Accounts: Monthly gift box services with indefinite billing.
• Non-Profit Merchant Accounts: Charging donors monthly fees until cancellation.

Startups in these sectors often struggle to get approval from financial institutions wary of new merchants using their transaction networks. Even established businesses can face challenges, as banks aiming to minimize risk have closed accounts of existing continuity businesses.

Securing a specialized payment processor adept in recurring billing models is vital for a merchant’s stability and growth. SecurePay Online and our partner banks are designed to support continuity and other high-risk industries. Our payment processing experts are available to help you apply for a merchant account and streamline your payment processes.

Chargeback Reduction for Continuity Billing Merchant Accounts

High chargebacks and returns are typical in the continuity business model. A well-defined Terms and Conditions statement can aid in reducing chargebacks. Established businesses often include detailed product/service descriptions, billing explanations, cancellation procedures, return/refund policies, and acknowledgment of billing agreements in their terms.

Besides a comprehensive Terms and Conditions page, merchants can implement clear credit card descriptors with customer service numbers, offer immediate refunds upon customer requests, and use chargeback mitigation services to preempt potential chargebacks.

Tips for Finding a Negative Option Merchant Account Processor

Selecting a trustworthy and reputable subscription payment service provider is essential for business growth. Merchants with an existing customer base must avoid risking their merchant account due to their business model, as account termination can lead to significant losses in time and investment. It’s important for continuity merchants to thoroughly research financial institutions before making a decision.

When researching potential payment processors, consider checking for complaints, ensuring a higher threshold for chargebacks, and seeking references from other continuity merchants.

SecurePay Online, skilled in handling challenging merchant industries, specializes in supporting continuity and recurring billing merchants within our high-risk portfolio.

Accept Payments for Continuity Services Today!

Setting up a recurring billing merchant account with SecurePay Online enables businesses to charge customers at regular intervals confidently. Our team of continuity experts will guide businesses in establishing their billing programs through our high-risk banking network, ensuring dependable and consistent payment services.

Like merchant accounts, the SecurePay Online Payment Gateway offers a secure method for subscription and membership businesses to accept higher-risk payments. Our gateway is fully PCI compliant and includes an integrated virtual terminal at no additional cost, allowing merchants to expand their business to include mail and telephone orders without extra equipment.

Our team collaborates with businesses to identify the best solutions tailored to your company’s needs. Our network of high-risk financial institutions is equipped to provide the necessary credit card processing services for continuity businesses. Our swift application process enables businesses to start accepting payments quickly.

For more details about our continuity and negative option billing payment processing services, reach out to the payment experts at SecurePay Online. We are committed to building long-term partnerships with all our clients in the continuity and recurring billing sectors.