The continuity industry, characterized by its recurring business model for product sales, is often classified as high-risk. This classification makes it challenging for these businesses to find a reliable payment processor. Paywise Solutions focuses on providing specialized continuity merchant account services to cater to these unique needs.

Businesses in the continuity industry typically include membership and subscription-based products and services, most of which are sold online or through mail-order/telephone-order companies. The high frequency of chargebacks and returns in this sector is a major reason for their classification as high-risk merchants.

While many payment processors initially accept merchants with recurring billing models, they often decline to continue working with them. This leaves merchants with active customers but no means to bill their credit or debit cards. Additionally, these payment processors often restrict merchants from accessing their customers’ billing information, forcing them to re-register customers.

Finding a suitable payment processor can be a significant challenge for membership or subscription-based businesses. The pool of payment processors and financial networks willing to handle these transactions is limited, making it crucial for merchants to find and maintain a stable relationship with a processor.

What are Continuity Merchants?

Continuity merchants are businesses authorized to bill customers at regular intervals for ongoing products or services. Customers are charged without prior notice, making them responsible for payments until they cancel their accounts.

Many continuity programs start with a low-cost or free introductory period to try the product or service. Services and product shipments continue until the customer contacts the merchant to end their subscription. After the introductory period, customers who do not cancel are typically charged the full price. While customers are informed of these billing changes during sign-up, most merchants do not remind consumers again, leading to high refund and chargeback rates in the continuity industry.

Types of Card Processing for Continuity Merchant Accounts

The continuity industry encompasses various business types using recurring billing merchant account services, including:

• Media Services Merchant Accounts: Access to online entertainment like television, music, or print media.
• Telecom Services Merchant Accounts: Offering contracts or month-to-month service plans.
• Software Services Merchant Accounts: Monthly rebills for various software providers, including marketing and support products.
• Membership Club Merchant Accounts: Retailers offering discounts for a yearly fee.
• Extended Warranty Merchant Accounts: Ongoing support through warranty plans from manufacturers or repair companies.
• Nutraceutical Merchant Accounts: Continuous monthly shipments of products like weight-loss supplements or energy boosters.
• Subscription Boxes Merchant Accounts: Monthly gift box services billing customers indefinitely.
• Non-Profit Merchant Accounts: Charging donors nominal monthly fees until canceled.

Startups in these industries face hurdles during the application process, as most financial institutions are hesitant to allow unproven merchants to process transactions through their networks. Even established businesses can experience issues with their payment processing services, as financial institutions seeking to reduce risk have terminated accounts for established continuity businesses.

Finding a specialized payment processor for recurring billing business models is crucial for a merchant’s stability and longevity. Paywise Solutions and our partner banks have tailored their business models to support continuity and other high-risk industries. Contact our payment processing professionals to apply for a merchant account and start processing payments efficiently.

Chargeback Reduction for Continuity Billing Merchant Accounts

High chargebacks and returns are common in most continuity businesses. Implementing a strong Terms and Conditions statement can help reduce chargebacks. Existing businesses often include descriptions of products/services, billing explanations, cancellation methods, return/refund policies, and acknowledgment of billing agreements in their terms.

In addition to a comprehensive Terms and Conditions webpage, merchants can also implement concise credit card descriptors with customer service numbers, immediate refunds upon customer contact, and chargeback mitigation services to catch potential chargebacks.

Tips for Finding a Negative Option Merchant Account Processor

Finding a reliable and reputable subscription payment services provider is crucial for building a business. Merchants with a customer base do not want to risk losing their merchant account due to their business type, as account termination results in substantial time and money loss invested in building the user base. Researching financial institutions thoroughly before deciding is important for continuity merchants.

Ideas for researching prospective payment processors include checking for complaints, ensuring a higher threshold for chargebacks, and asking for references from other continuity merchants.

Paywise Solutions, experienced in difficult-to-place merchant industries, specializes in accepting continuity and recurring billing merchants in our high-risk portfolio.

Accept Payments for Continuity Services Today!

Establishing a recurring billing merchant account with Paywise Solutions allows businesses to charge customers at regularly scheduled intervals without concern. Our team of continuity professionals will assist businesses in setting up their billing programs through our high-risk banking network, ensuring reliable and consistent payment services.

Like merchant accounts, the Paywise Solutions Payment Gateway provides subscription and membership businesses with a secure way to accept higher-risk payments. Our gateway is fully PCI compliant and offers an integrated virtual terminal at no extra cost, allowing merchants to expand their business by accepting mail and telephone orders without additional equipment.

Our team works with businesses to find the best solution to fit your company’s needs without making any sacrifices. Our network of high-risk financial institutions can provide the credit card processing services required by continuity businesses. Our fast application process allows businesses to accept payments swiftly.

For more information about our continuity and negative option billing payment processing services, contact the payment professionals at Paywise Solutions. We look forward to creating a long-term relationship with all our partners in the continuity and recurring billing industries.