Subscription Payment Processing
The continuity economy has become one of the most successful business structures within the last few years. This is, in part, due to the convenience of paying for and receiving goods and services through subscriptions. But what's more inconvenient than mailing a check or dealing with the intricacies of PayPal? Without the ability to accept credit card payments quickly and securely, your subscription business will surely suffer.
On top of this reality, the subscription or recurring payment structure is not considered a traditional category by acquiring banks. Essentially, this means that, as the business owner, you will have a harder time securing merchant processing in comparison to traditional, low-risk businesses.
Subscription Merchant Accounts are Hard to Place
Due to excessive chargebacks, high volume of sales, and possible fraudulency, banks have deemed this space high risk. Thankfully, issues such as these can be mitigated or prevented. Finding a merchant account provider for your subscription based company is the first step to processing transactions quickly and efficiently. These services have the capability to put structures in place to allow for continuity billing, a seamless gateway integration, and risk mitigation tactics.
One of the most controversial features many continuity businesses provide is negative option processing. In essence, this feature is a recurring charge or subscription set in place to continually renew until an action on the consumer’s end is taken. Negative option processing is common practice in the subscription industry. Not only is this feature convenient for the merchant—providing steady revenue—but it's also convenient for the customer, who doesn't have to manually renew the subscription or service each period. However, this style of recurring payment can be viewed negatively when it comes to finding a merchant account because banks see this service as a potential risk.
Whether you’re offering a trial supplement, a clothing subscription box, or another service, your customers expect to pay with credit and debit cards. Your success hinges on the ability to accept major card types without a hitch. Partnering with a reputable high risk merchant account provider that supports continuity and subscription style businesses is necessary for your success. LG Payments, LLC not only focusses on high risk industries, but we also work with a plethora of subscription based businesses that are uniquely positioned with the infrastructure and mitigation tools to help you find continued success.
Partnering with a Continuity Merchant Account Provider you can Trust
We are an innovative payment solutions company specializing in the unique challenges of hard-to-place, , and eCommerce industries. We have the scale and framework to support subscription-style businesses and ensure proper underwriting practices are utilized on each one to mitigate the associated risk and become PCI compliant. Our API integrations work with nearly every third-party gateway and allow security and reliability for your customers.
Subscription and Continuity Business Types We Can Help
At LG Payments, we work with a wide array of continuity-style businesses.
Content Downloads
Replenishment
Product Discovery Boxes
Healthcare
Education
Co-working space
and many more...
The possibilities in this industry are endless because of the ability to monetize almost anything. And because of the popularity of subscription style processing, customers seek out businesses with this pay structure. Subscription is easy to budget for, provides a predictable revenue stream, and gives customers more options than traditional avenues. And with the nature of the space changing and shifting over time, the possibilities are truly endless.
Follow up with Us
We understand securing credit card processing for subscription based companies can be a difficult venture. Finding the right merchant services company to secure payment processing will mean the difference between delaying your business development and accepting customers.
Get started with your merchant account today! Simply call or fill out our online form so we can start the application process and get you processing credit cards as soon as possible.