High Risk Merchant Account for Continuity & Subscription BusinessesContinuity and subscription businesses are very appealing to consumers due to the products being sold and the ease and convenience of delivery. These days, for example, subscription boxes are gaining huge popularity (anything from beauty, to pets). Continuity/subscription businesses are usually categorized as high risk due to the types of products or services sold or provided, as well as the nature of the auto-shipped transaction. Auto ship programs generate repeat sale transactions on a recurring basis (i.e. every thirty days, every six months). Products or services are automatically delivered to the customer at the specified interval. Further, a higher risk of chargebacks is present in businesses using continuity models.
Continuity/autoship business types may include:
- Supplements, vitamins, and nutraceuticals
- Health products
- Cosmetics and beauty
- Clothing and accessories
- Pet supplies