Continuity Subscription Merchant Services
PaymentCloud is a trusted provider of continuity subscription merchant accounts with quick approvals, low rates, and hundreds of integrations. We offer advanced gateway features to help you fight churn and keep your revenue secure, even when payments fail:
- Failed Payment Recovery Technology
- Advanced Payment Retry
- Credit Card Account Updater
What is a Continuity Subscription Merchant Account & How Can I Get One?
A Continuity Subscription Merchant Account is a specialized business account designed to help merchants who offer subscription-based products or services process recurring payments . This type of account allows you to securely accept credit and debit card payments for ongoing billing cycles, making it ideal for businesses with subscription models, such as SaaS platforms, membership sites, and subscription box services.
Getting set up with this type of merchant account is simple. Just fill out our contact form, and one of our expert account managers will contact you to discuss your business’s unique needs
Once we’ve reviewed your business details, your dedicated account manager will recommend the best payment solutions tailored to your subscription model. From there, we’ll guide you through the setup process, ensuring everything is customized to fit your specific needs. Once approved, you can begin accepting payments right away—often as soon as the next day!
A Continuity Subscription Merchant Account is a specialized business account designed to help merchants who offer subscription-based products or services process recurring payments . This type of account allows you to securely accept credit and debit card payments for ongoing billing cycles, making it ideal for businesses with subscription models, such as SaaS platforms, membership sites, and subscription box services.
Getting set up with this type of merchant account is simple. Just fill out our contact form, and one of our expert account managers will contact you to discuss your business’s unique needs
Once we’ve reviewed your business details, your dedicated account manager will recommend the best payment solutions tailored to your subscription model. From there, we’ll guide you through the setup process, ensuring everything is customized to fit your specific needs. Once approved, you can begin accepting payments right away—often as soon as the next day!
Types of Subscription Businesses We Support
At PaymentCloud, we work with a wide array of continuity-style businesses. With our ability to monetize just about anything, the possibilities are endless. And because of the popularity of subscription-style processing, customers seek out businesses with this pay structure. Subscriptions are easy to budget for, provide a predictable revenue stream, and give customers more options than traditional avenues.
- Digital Streaming Services
- Magazine Subscription
- Game Passes
- Subscription Boxes
- Meal Kits
- SaaS
- eLearning Platforms
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Why Continuity Subscription Merchants are Considered High-Risk
Continuity subscription businesses are typically classified under MCC 5968 (Direct Marketing – Continuity/Subscription Merchants), which indicates the recurring nature of the transactions to banks and payment processors. These accounts are often categorized as high-risk due to factors like:
- Excessive chargebacks
- High sales volumes
- Potential fraud
The nature of recurring billing and negative option processing, where a subscription automatically renews unless the customer opts out, can further contribute to the risk. Negative option processing is a feature convenient for the merchant, providing steady revenue. Still, it’s also convenient for the customer, who doesn’t have to manually renew the subscription or service each period. However, this style of recurring payment can have a negative reputation when it comes to finding a merchant account because banks see this service as a potential risk.
How a Specialized Merchant Account Provider Can Help Your Business
Thankfully, issues such as these can be mitigated or prevented. Finding a merchant account provider for your subscription-based company is the first step to processing transactions quickly and efficiently. These providers can implement structures to support continuity billing, seamless gateway integration, and risk mitigation tactics. An experienced merchant services provider (MSP) can help lessen these risks by properly underwriting, approving, and processing high-risk transactions. An MSP will implement processes that ensure:
seamless gateway integration
continuity billing
robust risk mitigation tactics
Whether offering a trial supplement, a clothing subscription box, or another service, your customers expect to pay with credit or debit cards. Your success hinges on the ability to accept major card types without a hitch. By partnering with a high-risk merchant account provider that specializes in subscription-based businesses, you can securely process payments, reduce chargebacks, and ensure smooth transactions, allowing your business to thrive while minimizing potential pitfalls.
Continuity Subscription Credit Card Processing Fees
The average credit card processing fees typically range between 2.95% and 3.95%. The exact rate depends on various factors, including the card brand, transaction type, and the overall risk profile of your business. In addition to the processing rate, there may be other fees to consider, such as monthly service charges and merchant account setup fees. Continuity subscription businesses, especially those with recurring billing and a higher risk of chargebacks, often face higher-than-average processing fees.
Subscription Payment Processing Application Requirements
Collect the details below before applying for a merchant account to help speed up the approval process. In addition to a signed application, the typical documentation required for a Continuity Subscription merchant account is as follows:
Government-issued photo identification
Voided check or bank letter
Three months of bank statements
Three months of processing statements (if applicable)
Information regarding your subscription-based business (and its products or services)
Along with the above documents, you should also be ready with a website secured with an SSL certificate, uses HTTPS, and includes the following:
- Your company’s legal name and logo
- Contact details (phone number or email)
- Privacy Policy/Terms & Conditions page
- Return & Refund Policy page
Why Choose PaymentCloud?
There are many reasons to choose PaymentCloud for processing credit card transactions for your continuity subscription business. Here’s why our payment solutions are ideal for your subscription model:
Advanced Payment Gateway Solutions
PaymentCloud is gateway agnostic and offers cutting-edge payment gateways designed specifically for subscription-based businesses. Whether you’re running a recurring service or offering trial periods, our secure and flexible payment solutions ensure seamless transactions for both you and your customers.
Our gateways are compatible with a wide range of payment methods, including 3D Secure, Apple Pay, Google Pay, and Samsung Pay, while our advanced and secure credit card vaults provide top-tier protection for sensitive data. Whether you need to manage subscription billing, negative option processing, or a combination of both, our solutions are tailored to fit your unique business model.
Smooth Cardholder Migration
In addition, PaymentCloud will manage the cardholder migration from existing payment platforms like Stripe and PayPal. Migrating cardholder data can be quite tricky, as it requires authentication at the account level, as well as liaison between the old processor and the new PCI Level 1 gateway to transfer encrypted files. PaymentCloud has handled hundreds of these migrations across a multitude of payment service providers and gateways – we will ensure a smooth and secure transition with minimal disruption to your business. Whether you’re switching platforms or need to migrate after an account shutdown, we will help make the transition as seamless as possible.
Chargeback Protection
Chargebacks are a significant concern for continuity subscription businesses, as recurring billing can sometimes lead to customer disputes. These chargebacks not only result in revenue loss but can also lead to costly penalties or a complete shutdown of your payment processing account . At PaymentCloud, we provide chargeback protection solutions to help minimize risks, proactively prevent chargebacks, and contest “friendly fraud,” keeping your business secure and profitable.
Fraud Prevention Tools & Risk Settings
Fraud is a major risk for any business with recurring payments, and continuity subscription businesses are no exception. That’s why PaymentCloud prioritizes fraud prevention in all payment products. Using cutting-edge fraud detection technology, we monitor and block suspicious transactions before they’re processed, protecting your business from fraudsters and ensuring secure payments for your customers. We will customize the fraud settings of the gateway and set velocity and IP settings specific to your business model.
Transparent Pricing & Dedicated Support
At PaymentCloud, we offer competitive, transparent pricing with no hidden fees or long-term contracts. Our team of experts will work closely with you to assess your business needs and determine the most cost-effective pricing structure. Our dedicated account managers are here to guide you through the entire onboarding process and offer ongoing support to optimize your payment processing needs.
Seamless Payment Gateway Integrations for Your Subscription Business
We understand that running a successful subscription business means having a payment system that integrates effortlessly with your existing tools and software. That’s why we offer seamless integrations with industry-leading payment gateways—such as Authorize.net, NMI, and USAePay—designed to work with the most popular eCommerce platforms. Whether you’re handling subscription billing, negative option processing, or offering free trials through dedicated CRMs, we ensure your payment system integrates smoothly, maximizing your business’s efficiency.
Frequently Asked Questions
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What are Continuity Subscription Merchants?
Continuity subscription merchants are businesses that provide products or services through a recurring subscription model. Customers are billed on a regular basis, whether weekly, monthly, or annually until they decide to cancel. These merchants often offer free trials or introductory offers, allowing customers to try the service before committing to ongoing payments
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What is the difference between recurring payments and subscription billing?
Recurring payments are automatic charges that happen at regular intervals, like a monthly bill. Subscription billing is a type of recurring payment that offers different plans or tiers, giving customers flexibility to choose the service that best fits their needs.
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What are some examples of subscription payments?
Examples of subscription payments include streaming services, meal kit deliveries, and subscription boxes for beauty products or snacks. Customers are billed automatically on a regular basis, usually monthly or annually, for ongoing access to these services or products.
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Can regular merchant accounts be used for Continuity & Subscription businesses?
You can use a regular merchant account for your subscription business. However, they may not offer the level of automation required for seamless processing of recurring payments. Opting for a merchant service provider specifically designed for this type of business model often comes equipped with better rates, enhanced security features, and more efficient automation tools that streamline payment processes.
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Why would a continuity subscription business need a merchant account?
A continuity subscription business needs a merchant account to process recurring payments securely. It helps manage automatic billing, prevent fraud, handle chargebacks, and ensure smooth transactions, all of which are essential for maintaining a steady revenue stream and running a successful subscription model.
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Am I able to offer my customers a free trial?
Most likely, no. Many banks frown upon the practice of offering free trials to consumers because, most of the time, a free trial comes with negative option billing practices. This is a no-go for banks because this often leads to unhappy customers and chargebacks. While there are a few exceptions to this rule, it is not a great practice for most businesses.
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Are negative option or auto opt-in features supported?
At this time, these features are not supported. It is too much risk for a bank to take on when enabled on your account. Chargeback ratios get much higher, and there is a bigger legality issue that is too much to shoulder for most subscription businesses and their supporting banks .
Ready to Talk?
Apply in as little as 5 minutes, and you will receive a call from one of our trained representatives within 24 hours to get you set up with dermatologist payment services.
Here’s What Our Merchants Say
Let’s hear a few!
With a proud average of 4.8 stars across all review sites, PaymentCloud excels in solutions and support. But don’t take our word for it! Here’s what our merchant had to say:
Brad R.
Excellent service. First and foremost due to the nature of our business, we were declined by about 15 other payment processors before we came across Payment Cloud. And they have excelled in offering us the services we need and more, with extremely quick response times, and great customer service!
Desion S.
The Team was so eagerly ready to help. Very friendly and informative. I love the app. Easy to set up and use
Amanda J H.
The application itself was easy to fill out and self explanatory and the application process was actually very quick and painless as well! My Account Manager and my Customer Success representative were both so friendly and helped me tremendously by walking me thru each step of the process and in getting my account activated! They are the biggest reason for my rating! Big thank you to Payment Cloud for my new payment processing account!
