Continuity & Subscription Merchant Accounts
Reliable payment processing solutions designed specifically for subscription-based businesses. Get approved with competitive rates, even if you've faced payment challenges before.
- ✓Specialized processing for continuity merchants
- ✓Advanced recurring billing solutions
- ✓Chargeback prevention and subscription management tools
- ✓Simplified customer retention and reactivation workflows
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Payment Processing Challenges for Subscription Businesses
Understanding the unique obstacles subscription merchants face and how Kosipay solves them
High-Risk Classification
Subscription-based businesses are often classified as high-risk by traditional payment processors due to their recurring billing model and extended fulfillment periods. Kosipay specializes in high-risk industries and provides stable processing solutions designed specifically for subscription merchants.
Regulatory Compliance
Subscription businesses face complex regulatory requirements around recurring billing, free trials, and subscription cancellations. Our payment solutions include built-in compliance tools to help you navigate federal regulations and card network policies affecting subscription merchants.
Excessive Fees
Many processors charge subscription businesses exorbitant rates and fees, taking advantage of the limited options available. Kosipay offers transparent, competitive pricing specifically tailored to subscription merchants, with no hidden fees or unexpected charges.
High Chargeback Rates
Subscription businesses often experience higher chargeback rates due to forgotten subscriptions, unclear billing practices, or customer dissatisfaction. Our advanced chargeback prevention tools and subscription management systems help protect your business while maintaining merchant account stability.
Account Stability Issues
Subscription merchants often face account terminations or freezes due to risk reassessments or policy changes. Kosipay has established relationships with banks that understand subscription business models, providing you with stable, long-term processing solutions.
Declined Transactions
Recurring transactions have higher decline rates due to expired cards, insufficient funds, or fraud filters. Our intelligent subscription billing system includes card updater technology, retry logic, and decline salvage tools to maximize payment success rates and reduce subscriber churn.
Subscription Payment Processing Solutions
Comprehensive payment services tailored for subscription-based businesses
Subscription-Friendly Merchant Accounts
Dedicated merchant accounts specifically designed for subscription-based businesses, with approval rates over 90%, even for previously declined merchants.
Advanced Recurring Billing
Sophisticated recurring billing platform with flexible billing cycles, prorated charges, and customizable subscription management.
Trial Period Management
Compliant free trial and paid trial management with automated notifications and smooth transitions to paid subscriptions.
Dunning Management
Automated retry logic, intelligent retry scheduling, and customer communication tools to recover failed payments.
Card Updater Technology
Automatic card updating that detects expired or replaced cards and updates subscription information without customer intervention.
Subscriber Analytics
Comprehensive analytics tools to track subscriber lifetime value, churn rates, and subscription performance metrics.
Account Updater Service
Automatic updating of expired or replaced cards without requiring customer intervention, reducing subscription churn.
Subscription Management Portal
Self-service customer portal for managing subscriptions, updating payment information, and controlling subscription preferences.
Chargeback Prevention
Specialized chargeback prevention tools designed for the unique needs of subscription businesses, including descriptive billing and pre-dispute alerts.
Simple Application Process for Subscription Merchants
Our streamlined application process gets your subscription business processing payments quickly
Complete Application
Fill out our simple online application with details about your subscription business model
Submit Documentation
Provide necessary documentation, including subscription terms, fulfillment details, and business information
Underwriting Review
Our specialist underwriting team reviews your application with subscription industry expertise
Account Approval
Receive account approval within 24-72 hours, significantly faster than industry averages
Integration Setup
Our team configures your recurring billing system and integrates with your existing platforms
Start Processing
Begin processing subscription payments with ongoing technical and compliance support
Subscription Compliance & Risk Management
Customer Retention & Recovery Tools
Frequently Asked Questions
Common questions about subscription merchant accounts and payment processing
Why are subscription businesses considered high-risk by payment processors?
Subscription businesses are often classified as high-risk due to several factors: recurring billing increases the likelihood of customer disputes, longer fulfillment periods create more opportunities for customer dissatisfaction, free trials and promotional offers can attract fraudulent sign-ups, and higher-than-average chargeback rates due to forgotten subscriptions. Kosipay understands these unique challenges and provides specialized services to mitigate these risks while maintaining reliable payment processing.
What are the typical processing rates for subscription businesses?
Processing rates for subscription merchants typically range from 3.5% to 5.5% plus a small per-transaction fee, depending on your business model, subscription volume, and risk profile. While these rates are higher than those for traditional retail, they reflect the specialized services required for subscription processing. Kosipay offers competitive, transparent pricing with no hidden fees, and we provide custom quotes based on your specific business needs and volume.
Do you require a rolling reserve for subscription merchant accounts?
Some subscription merchant accounts may require a rolling reserve, which is a percentage of your processing volume held in reserve to cover potential chargebacks. The need for a reserve depends on your business model, chargeback history, and fulfillment timeframes. When required, reserves typically range from 5-10% and are fully returned to you after a predetermined period, usually 6 months. Our underwriting team works to minimize reserves whenever possible based on your specific risk profile.
What documentation is required to apply for a subscription merchant account?
For a subscription merchant account, you'll typically need: business license and formation documents, 3-6 months of bank statements, processing statements (if applicable), valid ID for all owners with 25%+ ownership, detailed subscription terms and conditions, clear cancellation policy, example of product/service being offered, fulfillment timeline details, and website or sales platform information. Our application specialists will guide you through the specific requirements for your subscription business model.
How do you help subscription merchants prevent chargebacks?
Our subscription merchant accounts include specialized chargeback prevention tools designed specifically for recurring billing models. These include clear billing descriptors that remind customers of their subscription, pre-billing notifications before each charge, easy cancellation mechanisms, comprehensive receipt and fulfillment tracking, customer subscription portals, and advanced fraud detection to minimize fraudulent sign-ups. We also provide dispute management services with industry-specific response strategies for subscription-related disputes.
What features does your recurring billing platform offer?
Our recurring billing platform includes: flexible billing cycle options (daily, weekly, monthly, annual, or custom intervals), proration capabilities for mid-cycle changes, free and paid trial management, built-in dunning management with customizable retry logic, automated customer communications, card updater technology to reduce payment failures, comprehensive reporting and analytics, subscriber lifecycle management, plan and pricing tier management, and integration with major platforms and CRMs. The platform is designed to maximize subscription revenue while maintaining regulatory compliance.
Have more questions about subscription payment processing?
Speak With a Subscription Payment SpecialistGet Your Subscription Merchant Account Today
Don't let payment processing limitations hold back your subscription business growth. Our specialized solutions ensure you can accept recurring payments reliably and securely.
- ✓Specialized processing for subscription businesses
- ✓Advanced recurring billing platform with retention tools
- ✓Chargeback prevention specifically for subscription models
- ✓Ongoing compliance support and account stability
Get Started Today
Fill out the form below to receive your tailored payment solution
By clicking submit, you agree to our Terms of Service and Privacy Policy