Start Receiving Subscription Payments For Your Business
Do you know what is Subscription Payments is? How Businesses charge their customers on a recurring basis? Well, Businesses needs a Merchant Account to get started with their Subscription Payment Processing.
Subscription Payment Processing is a business model that most of today’s businesses are adopting to lure customers. They then charge the customer on a recurring basis. If you are a business owner searching for one of the best Merchant Account for your subscription service, you must be aware that you are doing a high-risk business and require a high-risk merchant account. It is quite challenging to get a Subscription Merchant Account because of the risk associated with it.
Fortunately, Quadrapay has the Solution for you. We are a reseller of various payment processor. We are specialised in helping merchants from high-risk industry and help them to get one of the best payment solutions.
What Is Subscription Payments Processing?
Subscription Payments are payments which charge the customer on a recurring basis. This business model is beneficial and helps merchants to earn huge profits. Recurring bills are charged to the customer on an interval basis. Interval can be monthly or annually. The subscription goes as long as until the customer withdraws or cancel the subscription.
Sometimes businesses offer their product on a lower price to the customer. Later they increase the cost without notifying the customer. Once the recurring bill is generated, the customer gets to know that they have been charged at a high price. If the customer loves the product, then they didn’t withdraw their subscription. But what if they raise a dispute for a chargeback? There are many cases when a customer raises chargeback for a product or services once the offer period is over. This is why the Subscription Payment model is considered as a high-risk business and require a high-risk merchant account.
Benefits Of Subscription Merchant Account?
- Income forecast: Merchants can predict their future income based on the current subscription. The next due date and payment amount are pre-decided at the time of sale.
- Attracts Customers: Subscription Model attracts customer more rather than one time sale. It’s a fact that customers like to pay each month a small amount rather than a one-time instalment. For example, a gym charges yearly fees of $48, but the reliability to pay $4 each month is more.
- Customer Engagement: If you are selling a subscription-based service, you are more likely to engage your customer for a fixed amount of time.
- Predictable Requirements: Merchants also have the advantages to predict their future need to get ready for it.
How Subscription Payment Processing Works?
Subscription Payment Processing is a unique and very attractive business idea. Though it requires a pre-planned system to work efficiently.
- Merchant Account: It is an account, more specifically a high-risk merchant account where all the payments get settled for your subscription billing cycle. The account helps you to accept credit/debit cards payments.
- Payment Gateway: A payment gateway is a web- interface which helps your customer to start their subscription. Once started, it authorises the payments and supports smooth communication between acquiring bank and issuing bank.
- Subscription Management: A managing software works with your payment gateway to ensure merchants that right account are being charged periodically.
- Dunning Management: Dunning management is necessary to check customers saved cards are active or expired. A follow up is required to aware your customer that the card is going to expire, update it soon to enjoy the service. Or merchants have to cancel the subscription.
- Analytics Tool: An analytics is required to forecast your future sales and get yourself pre-ready to face the outcome.
Subscription Payment Service For Every Business Needs!
Recurring billing or say Subscription Payment Service is now in the trend of payment processing solutions. In this digital era, if a merchant still relies on traditional cash-based transactions, then it will be very much difficult for them to grow their business. Nowadays, people are more interested in paying using subscription-based payment services because this makes it easier for customers to pay for the products that they are willing to purchase. In order to provide recurring billing, the business merchant needs to have a subscription payment service in order to fulfil those transactions. Quadrapay is one of the reliable and most trusted payment service providers. Now easy to get approved for subscription payment service.
What Is The Procedure To Accept Echeck Payments For Subscription Business Websites?
The Echecks are an advanced version of paper checks which tends to get settled faster while compared to the traditional paper checks. It also saves a lot of extra funds and time as well because it does not require you to manually fill the details and then posting it the bank for full and final settlement in your business merchant account.
The whole procedure to accept Echeck payments is majorly divided into these four steps as follows:
- Transaction Approval Request: In order to initiate the transaction, a business merchant needs to retrieve approval from the customer regarding the transaction. This can be taken by a written request, phone call conversation or an email as well.
- Initialize The Payment Process: When the customer provides the approval for the transaction, a form needs to be filled by the customer, which will include payment pieces of information.
Finalize The Transaction: All the information provided by the customer needs to be submitted on the payment portal for forwarding it to the payment processor through the ACH network.
- Completing The Transaction: After submitting all the payment details of the customer to the payment processor, it will be verified with the electronic check processing machine. Upon approval, the funds get debited from the customer’s bank account and get credited into the business merchant account. This process may take expected around three to five working days for the funds to get settled and reflect in the business merchant’s acquiring bank account.
What Are The Major Advantages For A Business To Accept Echecks?
For those businesses that are operating under the high-risk category might need to pay a lot higher charges in terms of processing rates. This is because of the number of risks involved in the transactions, and that makes it difficult for a high-risk business merchant to get a card processing solution. But a business owner can take advantage of Echeck/ACH processing to accept payments online while paying less processing charges compared to high-risk credit card solution.
Some of the benefits of Echeck processing service are as follows:
Low Processing Rates: There are several types of payment processing solutions available. But the primary factor that affects the sales and profits of a business is the charges that a business merchant needs to pay for processing payment transactions. These charges can affect much higher for a business that is running under the category of high-risk business classification. That is why the business should focus on electronic checks online. Echeck/ACH processing offers an affordable solution while compared to other payment methods like credit cards.
Subscription Payment Service: The feature that makes Echeck solution so popular is the subscription payment service. This also provides facility for your customers to pay quickly in the form of recurring billing service or subscription payment service. At that time, money gets debited directly from the customer’s provided bank account and gets settled into your business merchant account. Subscription payment service also helps to improve the business merchant and customer relations.
Credit Card Processing For Continuity Businesses.
A continuity credit card processor allows merchants to accept payments in the subscription or recurring mode. This payment model is quite prevalent in many industries. Some of modern verticals like VOD, IPTV, Internet service providers, Mobile applications are great examples of this merchant type.
The challenge – Most of the banks prefer to stay away from any thing that has subscriptions and recurring payments. There is a genuine reason behind it , Many merchants sell subscription on the basis of free trial. these kind of accounts are the most risk oriented. Majority of customers forget they opted for free trial and raise chargeback disputes when they see the transaction on the billing statement.
So what is the option for merchants that are in need of recurring billing services. Well there is always an option and here there are many.
Approach a high risk merchant account provider for continuity merchant account. the rates may be slightly higher then regular low risk accounts but still you may get access to accepting card payments
Approach an alternative payment solution provider. For continuity we suggest ACH payment processing. This helps merchants accept payments from customers bank account and does not involve the card schemes
Approach a Crypto to Fiat payment gateway. yes this is even better option then ACH and this is almost with Zero chargeback. The Crypto gateway provider accepts the digital assets and send the fiat currency to the merchant.
Hope this helps.
Get your Subscription Merchant Account with Quadrapay
If you are also a business owner looking a Merchant Account for your subscription business model, then start your journey with Quadrapay. We have already processed many merchant accounts similar to your industry type.
To get started you have to fill a pre-approval form available in our site. We will get back to you within 24 hrs. Our dedicated expert will help you throughout the process from initial documentation to final payment solution integration. Still, have a query? Don’t worry; we will love to help you.
If you have any query, reach us at [email protected].