Membership Merchant Account
Membership Merchant
Membership merchant accounts are categorized as high risk since they require the customer to discontinue the membership in order to discontinue the recurring billing. Banks and payment processors find these businesses high risk because the company needs to be very attentive to the customer. If the customer wants to cancel the charge they need to be able to contact the business without any problems. Secondly, if there is a problem with the product or service the company needs to be able to solve the problem. Also with every disgruntle client there is the chance of multiple chargebacks, not just one with a regular merchant.
Membership style selling strategies are very popular with online retailers that are selling a product that is used over and over again. This would include a membership to an online website or service as well as a product that is continually used. Products commonly sold in the membership form would include diet pills and nutraceuticals. These products are sent to the customer monthly and the customer’s card is charged monthly as well. Issues and problems arise from membership merchants when they are not available for customers to contact them. If the customer wants to change their subscription or cancel it, the merchant must be available.
Many payment processors will not work with membership merchant accounts. Even more will not work with startup membership merchants. There is an increased risk with the setup of a startup membership merchant. If your membership business is already operating and you have processing history you have a better chance of being setup with a membership merchant account. Your proven track record will work for you. Offshore Merchants has been setting up membership merchant accounts since 2007. Your business will receive approval or decline within 1-2 weeks and setup shortly after that.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.