Subscription Box Merchant Account
So, you want to make your customers have by sending new outlooks monthly. But to do this, you need to open a merchant account. With its help you can accept payment from your clients. Nevertheless, onboarding might be somewhat problematic.
What is the subscription box?
Subscription box refers to the subscription-based model of doing business. This means a customer subscribes to receive a recurring delivery of some products. Subscription box has proved itself as an emerging and popular distribution method.
Subscription box may provide different goods. Clients can subscribe to receive clothing, food baskets, fragrances, books, and so on. As users decide to enjoy the benefits of the subscription-based model, they agree to get their money withdrawn from their payment card . It is done automatically by the merchant and on the prearranged schedule.
Why subscription box is considered a high-risk business
This business model gets a high-risk label due to big chargeback volume. Clients might be not too attentive when they buy the box. They simply do not notice that they will be charged on a monthly basis. This is yet the main reason for them to file for a chargeback. Sometimes, instead of unsubscribing to cancel the subscription, they find it easier to open a dispute.
What are the core needs of subscription box merchants
Assuming subscription box merchant particularities, it will require some special solutions. The vital ones are:
- Recurring billing. In order to make the subscription-based model work, the payment service provider needs to empower its clients a recurring billing option. With its help, merchants can charge a certain amount of money from the client’s account on the prearranged schedule (usually once per month). This is an essential feature for this business-model type.
- Anti-fraud & chargeback prevention solutions. As this model may be prone to fraud, the payment processor must have proven fraud prevention solutions. Moreover, to protect the merchant from the “friendly fraud” the PSP should have chargeback prevention tools.
When you look for the payment processor, make sure it has these two options. Of course, in addition, you need to opt for a variety of credit cards and currencies, and other specific features related to your subscription box company.
Ikajo International has a personal approach to every company. As you open a merchant account with Ikajo, you can experience a range of solutions that are fine-tuned for your business needs.
What subscription box merchant will appreciate a lot, is a free recurring billing option. Yes, you don’t have to pay extra fees to enjoy this feature. This means you don’t spend your budget on the unnecessary things. Moreover, Ikajo has its own top-notch fraud and chargeback prevention software. Thanks to the best machine learning practices, Ikajo helps to detect and prevent suspicious activity.
- Anti-fraud solutions & chargeback prevention tools
- Integration via API and HPP
- Recurring billing free of charge
- Over 100 payment methods
- Over 100 currencies
- Relationships with over 60 global banks
- Mobile banking
- 24/7 customer support