Trial offer merchant accounts subscriptions have long been an awesome marketing and sales tactic for businesses in different industries. Apart from allowing clients to try out the trial account, the accounts provide companies with a platform to boost their sales with upsells and recurring payments. Unfortunately, due to the nature of the payments transaction, strict terms and conditions for late cancellations and buyer`s remorse, many of the firms relying on the trial offer accounts are finding it extremely hard to open merchants account that meets their needs.
What is a negative option?
Negative option is the provision of the client to consult the firm they purchased their trial offer with the aim of discontinuing the recurring membership, product, or service.
Companies that provide recurring payments are considered as a high-risk investment. This is partly due to the higher than the average number of chargebacks from subscribers and customers. Nonetheless, the bare truth is that having the ability to process credit card transactions on a recurring basis is an absolute necessity to many of the high-risk ventures. Often, clients that knowingly choose and benefit from this kind form of billing payments desire trial or recurring payments.
Even though these financial institutions provide merchants accounts, they are highly regulated and unhelpful for operators who are starting out. For a start, most of these institutions either reject or charge exorbitant fees for businesses with a high possibility of returns and refunds. Either way, it`s always better to go with the deferred form of payment processing instead of a merchant account.
Credit card companies
Small businesses usually prefer to get their trial merchant accounts through credit card companies instead of the business bank option. In rare cases, some of the credit card companies will require one to maintain an account in their bank before processing of cards.
Third party option is another excellent option for the small businesses. By using this method, however, businesses need to go through third-party providers to secure an account. The third party collects the client`s data and do the payment process for the business.
The upside of having a trial offer merchant account through the third parties is that it`s faster and easier. Moreover, if one is just starting out and the sales volume is not high, the option can save a lot of money. The downside, however, is that when the business grows, and the sales increase rapidly, it becomes an expensive option.
Since recurring payments require credit payments rather than liquid cash for an autonomous and convenient experience, always ensure that you work with companies that will help you integrate easily with the sales system and build your firm.