Magazine and newspaper subscriptions are when customers agree to pay a monthly fee for receiving their favorite magazines or newspapers. They are typically delivered right to the door or mailbox, and save the customer time and money by allowing them to get their magazine or newspaper at a lower cost and without having to go out to make the purchase.
Magazine and newspaper subscriptions can also be billed annually. This is typically ideal for both business and customers because the business has recurring annual revenue, and the customer will receive their subscription at a lower cost.
Magazines and newspapers were one of the first continuity subscriptions and most successful. A continuity subscription is a type of business model where businesses send items or provide services each month to offer their customers a certain level of convenience and enhance the customer experience.
Instead of just sending one magazine to a customer and hoping that they come back for more, a customer can sign up for subscriptions and receive one or multiple magazines each month.
Merchant accounts allow you to accept credit and debit card payments, whether in person, online or over the phone. In the continuity subscription-based businesses, they are absolutely necessary for providing your customers with the level of convenience they expect in this day and age.
However, due to excessive chargebacks, high sales volumes, and fraud, banks have deemed all subscription-based businesses as high-risk. Your business may be faced with negative option processing, a recurring charge, or subscription that will continue to renew until action is taken on the consumers’ end. This means that the customer will have to end the subscription on their own.
While this means your business will bring in more money, you also open yourself up to excessive chargebacks. Banks will see this as a risk before they even know more about your business.
While it can be difficult for a business to find the right merchant account provider, this isn’t a sign to throw in the towel. You can still have a successful business by working with merchant account service providers specializing in the subscription business model space.
The success of your business depends on your ability to accept credit card payments and mitigate the unnecessary risk of chargebacks and fraud. Partnering with a high-risk merchant account provider like High Risk Pay can help you build your business and avoid unnecessary risks.
We have a dedicated team of sales reps who are ready to help you navigate the challenging world of subscription billing and merchant accounts. Once your account is approved, we can walk you through the payment process and guide you through set up so that you can begin accepting credit cards as soon as possible.
To start accepting continuous payments, apply for a direct-marketing merchant account today.
See also: Canadian high risk merchant account