Merchant Account Solutions for Subscription and Membership-based businesses

Different types of businesses require different modes of payment. The right choice of payment option that compliments your business should be based on two important variables; first being the type of business you operate and two being the kind of demographic you cater to and want to attract.

A merchant account is a mandatory requirement in order to accept credit or debit cards. And obtaining one might be quite easy if you are a regular business but just getting one should not be your priority. Instead, finding the right merchant account provider that suits your business operations and goals and offers you the services that will help you run your payment process efficiently is of utmost importance.

This is especially important in case of high risk businesses who struggle to find merchant solutions and end up compromising on the quality of services they receive. One such industry that has trouble dealing with banks is the subscription or membership based businesses.

Businesses with products and services like magazines, cosmetics, spas, lifestyle, healthcare, clubs, fashion etc that are consumed on the regular basis come under this particular industry.

Challenges for Subscription- or Membership-based businesses:

The most common reason why merchants with recurring business models are often denied a merchant account is due to the higher risk of chargebacks. There are many scenarios with such businesses wherein the customers forget that they’ve signed up for services.

There is also a greater possibility of friendly frauds occurring with subscription based businesses with customers denying having signed up for services or authorizing for recurring payments and then calling up the bank to revoke their entire plans. Such instances hurt the business and increases their chargeback significantly.

Hence, it always advisable to disclose clear terms and conditions about your refund policies and payment terms during the check-out process.

Apply for a Merchant Account

Subscription- or Membership-based Merchant Account Solutions:

If you are one those businesses offering subscription or membership options to your customers, you should opt for a merchant account that will give you the ability to accept recurring payments easily and quickly and ultimately streamline your payment process efficiently. Such businesses have a specific payment processing needs that can only be fulfilled with Subscription- or Membership-based Merchant Account Services.

With a subscription- or membership-based merchant account, a customer need not enter their payment details every time. Plus, you don’t have to remind your customers for payments either since you can receive regular on-time payments automatically. You also have the freedom to choose when your customers will be charged i.e. daily, weekly, monthly, yearly, etc.

Such type of merchant account has extensive customizable recurring billing options for the kind of products and services you sell that will the demands of your business as well as customers.

Why you should use Multiple Payment Gateways for your business?

Businesses operate on profit. And in order to drive revenue, every business needs to grow. Adapting to the changing business environment and offering innovative solutions in the key to achieving both growth and continuous profit generation.

To survive in this competitive market, businesses need to push boundaries and expand. Expansion does not only include geographically but also through the services they offer.

One area of business operations in particular that is of utmost importance for a merchant is – Payments. Merchants have always struggled to find a payment solution that fits just right for their business. Just as customer demands and expectations keep changing, methods of accepting payments keep evolving too. And to capitalize on the change, merchants need to be aware and adapt accordingly.

Flexibility in payment methods leads to customer satisfaction. Imagine a buyer abandoning their shopping cart because they of the tedious payment process or simply because they couldn’t find their preferred method of payment. According to studies, the average shopping cart abandonment rate is 69.57%. And one of the most common reasons for it has been the lack of preferred payment options that customers want.

Having Multiple Payment Gateways can prove to be a good option. With various payment gateways to choose from, customers are happy. But before you go ahead with it, consider if your customers do really need the payment options other than the ones you already offer.

Apply for a Secure Payment Gateway

Better Customer Experience

Customer retention is important for any business. And one of the vital parts of providing better user experience is in the way payments are processed and accepted. Declining payments and a lengthy process can turn off customers easily. With multiple payment gateways, customers have variety to choose from which keeps them happy.

Works as a Back-up

There is always a possibility of your payment gateway suddenly crashing and your business coming to a standstill. And a merchant should always be prepared for such scenario. With one gateway down, you have a back-up ready that can continue to provide seamless, uninterrupted service to your customers.

Global Expansion

If you are looking to expand your business, especially abroad, you might find the need to integrate multiple payment gateways. The right international payment gateway solution might do the trick, but it may not always be the convenient option since they sometimes come with limitations with regards to the services they offer for that particular country. Each payment solution varies from place to place, so you can get multiple payment gateways that will cater efficiently for the particular region.

Increased conversion rate

Providing multiple gateways builds credibility and customer trust. Different payment gateways offer different features and options, selecting the best one that suits you which in turn will increase your conversion rate.

How To Choose The Right CBD Merchant Account Provider?

Major shift towards plastic money in recent years means businesses cannot afford to continue accepting payments in cash only. Variety should not just be limited to services and products offered by a business but also payment options.

In order to accept credit cards, you need a merchant account. Now obtaining a merchant account is fairly simple unless your business comes under the high risk category. And if you are a merchant selling CBD, you are almost guaranteed an outright refusal from a regular bank or processor even though you operate in a lucrative industry worth millions which is only expected grow further and predicted to reach 1,182.65 million by the end of 2024 at 31.26% CAGR.

Not all hope is lost because there are several reputed merchant account providers who are willing to take on your CBD business. But how do you choose the right one for you? Here are a few tips to follow while looking for a CBD Merchant Account:

Payment Options –

While credit card processing is an obvious choice, it is not the only choice of payment. There are several payment options that you can opt for when looking for a CBD Merchant account.

You also need to consider what suits your business the best. If you are a CBD store planning to expand into the e-commerce space in the future, you need to look for online payment processing solutions. So before settling on one, make sure they offer all the possible options you might need so you don’t have to waste time looking for another one in case your current provider isn’t enough.

But if you only need a POS Terminal to accept payments, you don’t want to end up paying for extra services you don’t even need.

Apply for a CBD Merchant Account

Additional features –

Chargeback protection tools, fraud prevention measures, PCI DSS compliance, 3D secure payment gateway, etc are some of the important features that a CBD merchant account provider should be able to provide. You will need a provider who will be willing to offer features that are customized to suit your business requirements.

Charges –

When you approach a processor for a CBD merchant account, they will shoo you away or charge unreasonable rates. Most merchants in a desperate attempt are then forced to pay higher processing fees.

Now bear in mind that you will be charged higher than other non-risky businesses. However, it also becomes important to negotiate in such cases. Different processors offer different pricing plans based on the kind of business you are and the type of payments you receive. Compare the prices of several other processors, understand the rate structure and only then settle for the one who offers the best services at a fair price.

Specialized Processor with stable bank partners –

Since CBD merchants deal with legal matters on the regular, a processor who is experienced and understands the industry will prove to be a helpful partner in the long run. They will also be lenient and are more prone to accepting your merchant account application.

Customer Support –

Effective and reliable customer support is important regardless of the type of business you operate. But it becomes all the more important in case of CBD business who deal in large processing volumes regularly. In case of any emergency, good customer support will provide solution on time.

Obtaining a CBD merchant account might be a task but keep in mind these tips and you might actually end up finding one that will only assist you in growing your business further.