What is the Difference Between a Continuity and Subscription Bank Account?

 

If you are thinking about opening a merchant account, you may be wondering what the difference is between a continuity and subscription bank account. This is a type of account that allows customers to sign up for a monthly or yearly subscription to a certain product or service. In addition to allowing you to accept credit cards, these accounts can provide a lot of other benefits to your business. You can find out more info here about this service.

 

A good merchant account provider will understand the unique needs of a subscription-based business. For instance, the provider should be able to handle chargebacks and help you reduce chargebacks. Chargebacks are common in any business, but they are even more common for subscription businesses. They can cost a merchant money if they don't handle their billing in a secure way.

 

The chargeback process involves many technicalities and can be costly for the merchant. Chargebacks are often initiated by unhappy customers because they have signed up for a recurring subscription and don't understand the monthly billing cycle. Sometimes, the customer forgets to cancel, or a subscription provider offers misleading information. Even worse, some subscription box businesses resort to questionable tactics such as not delivering a product. Visit this company website to get more info about this service.

 

The main difference between a subscription and a continuity bank account is the nature of the payment method. Subscriptions and recurring charges are common in the subscription industry, but they require both a customer's consent and the merchant's ability to accept recurring credit card transactions. Continuing to accept these types of transactions, however, increases the risk of chargebacks and can lead to a deteriorating financial situation.

 

When a customer signs up for a subscription, it enlists their credit card in a billing list. This means that the client will be charged each month unless they cancel their subscription. In other words, a continuity subscription merchant needs to stay top-of-mind with the customer to ensure that the customer continues to use their subscription for the long-term. A continuity subscription merchant needs to provide value to customers every month. Since a customer is paying on a recurring basis, the continuity subscription merchant has to continually offer value to ensure that they will be happy with their service. Education is a never ending process, so continue reading here:https://en.wikipedia.org/wiki/Bank_account.