An Overview – Free Trial Merchant Account
Businesses that are offering a free trial to their customers are considered as a negative business model. In this business model, merchants provide free services or products initially. Later they charge the customer at a recurring basis. These type of business model are declared as high-risk businesses. It is because of considerable chargebacks involved. Most of the acquiring banks or processors don’t want to touch these businesses and provide them Free Trial Merchant Account.
But don’t need to worry! We, at Quadrapay, has a solution for your free trial business model. We are specialised in providing merchants with a high-risk accounts. It helps them to grow and expand their customer base.
Risk Associated With Free Trial Business Model
All the acquiring banks and processor consider this free trial service model as a high-risk business. There are enormous disputes and chargeback issue. It is because the customer is sometimes unaware of their recurring membership. They forget to cancel their services or products they are using it for free. Once the monthly bill is generated, they get to know that they have been charged for the service which they opt for free previously. Let us look over how the free trial business model work.
- Merchants offer free services or product or sometimes at a hugely discounted price to their customer.
- Customer avail the free or discounted service. They do so by filling their credit card details onto the merchant’s site.
- Merchants sometimes didn’t notify the customer about the renewal date.
- Merchants charge the customers with a recurring bill after free trial gets over.
- This auto-renewal of the service sometimes forces the customer to chargeback.
Free Trial Credit Card ACH Merchant Account With Quadrapay
Are you are also doing businesses, that offers a free trial of products and services. If yes, then you might even be facing challenges to get a Merchant account. Well, Quadrapay has payment solutions for you. We help merchants with different types of payment solutions. For your industry type, you need a high-risk merchant account. But to get one, you should have a good past processing history. It is needed because it shows that the customer is still using the service after the free trial period is over. It helps acquiring bank and processor to build confidence that the company is able to sell the product after the free trial is over. The history contains all the recurring bills of the customers who renew their services. If your company is able to provide free service or products even after the free trial is over, it becomes much easier for you to get a merchant account.
If you have any query, reach us at [email protected].
Happy Processing !!!