Continuity Billing

Aacadia Payments Provides Processing for Continuity Billing

When your business is set up to accept payments through a subscription box merchant account, there’s a high risk of incurring excessive chargebacks. If you’re unaware of what a chargeback is, it happens when the customer disputes a charge on their debit or credit card by calling the number on the back of the card and claiming not to have authorized the purchase.

They might give any number of excuses as to why they’d like a chargeback. They may claim the charge isn’t one they recognize, they never got the item they purchased, the product wasn’t what they expected it to be, or has defective merchandise.

But when it comes to businesses that set up subscription boxes, the most common excuse is that the customer never authorized the company to bill their card.

Regardless of the reason they use to dispute the transaction, it starts an entire process of the dreaded chargeback with the customer. They contact their bank and then that bank contacts your credit card processor.

The customer’s bank then gets in touch with you. What happens next is that the disputed funds are taken from your bank account and do not become available to you again until the dispute is settled and until the customer proves that they didn’t authorize the transaction. In this case, the funds will not become available to you at all and will be “charged back” to the customer.

Are you, as the subscription box merchant, given a chance to speak up in this scenario? Yes, you are given an opportunity to refute the customer and prove that the charge indeed, was authorized. Once proven, the funds would be released back to you. But the runaround of the entire chargeback process is a huge hassle.

How Does Recurring Billing Work With My Merchant Account?

1. A customer doesn’t even need a legitimate reason to file a chargeback and start the whole return process. They can file a claim at any time for any reason.
2. The process of refuting a chargeback isn’t just a headache to deal with, it’s a very technical and involved process. It can literally result in the customer winning the dispute based on a technicality on your part. This can happen if all of the documents are submitted in a very specific way.
3. If the chargeback is proven to be in the customer’s favor, not only do you lose out on that sale and the money from the transaction but, in most cases, you also lose whatever product or service was sold in the initial purchase. Additionally, your credit card processor is likely to tack on fees and extra charges for the chargeback to your subscription box merchant account.
4. The biggest downfall of incurring an excessive amount of chargebacks (whether the claims are legitimate or not) is having your entire merchant account terminated.

How Can Aacadia Payments Help With Subscription Merchant Services?

“Excessive chargebacks” can lead to your subscription merchant account to be completely shut down or having your funds on hold with an Aggregator like Stripe, PayPal, or Square. Many times Aggregators quickly approve a new customer, without completing any type of Underwriting. Then when your business starts to have incoming chargebacks the Aggregators place your funds on hold and start reviewing your business. (as before this time they have no idea of what you sell)

Sometimes this can happen as quickly as your first Chargeback.  Then your business is labeled as a High-Risk merchant. This results in your account either being frozen or closed immediately without any kind of notice or opportunity to appeal.

High-Risk Payment Processing for Continuity Billing

Aacadia Payments is a leader in the industry of both Low and High-Risk payment processing. We work with merchants who need to set-up a recurring billing merchant account. Correspondingly, you should start off your recurring payment processing with the right Provider, you should look for one that understands your business and how to manage and reduce Chargebacks for Continuity businesses.

Whether your merchant account rebills customers monthly or annually or both, whether you have more than one business or separate brands and businesses, Aacadia Payments is the right place as we know and understand the compliance on Continuity Billing.

Open your Continuity Billing Merchant Account with Aacadia Today!!

Check around with different Payment Providers and make sure to ask all the questions you need to understand the process. 

Some examples of good questions to ask are: 

• Do you have approvals possible for my continuity Subscription business type? 
• How much experience do you have working with businesses that need a Continuity merchant account? 
• What are the Fees for this type of account?

Once you feel satisfied with your answers, take only 7 minutes to fill out the form below for a free quote. Aacadia Payments will provide the merchant account and peace of mind you need.  We understand the unique needs of different Continuity businesses and have established over 15 vendor banking relationships to make sure you are matched with the best provider for your business.

Why Choose Aacadia Payments?

Aacadia Payments understands the payment needs of Continuity Billing related businesses and has established numerous banking relationships and has become an expert in getting your Continuity Billing merchant account set up and we will help you continue accepting online payments for a long time.