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Why is the Recurring Billing business model so challenging?

What is Recurring Billing: A regularly scheduled charge credit card charge for products and/or services. These are often monthly charges.

From a financial perspective, this business model is highly regarded. A solid roster of clients can build a strong business and large profits. On the flip side, Recurring Billing faces difficult obstacles for the merchant, resulting in sometimes insurmountable processing issues.

One such example is charge backs. This occurs when your client’s credit card has expired of reached is maximum credit limit, or when the client refuses to pay on their own volition. Another example would be charge back requests based on substandard services or products. These challenges create a vicious cycle as they can result in being blacklisted by processors.

Such trends have led Recurring Billing to be considered a High Risk Business, which has resulted in great difficulties in applying for merchant accounts from local banks.

What’s the solution?
MerchAct specializes in working with and successfully placing Recurring Business processing. Our solid track record, strong relationships with global banks, and knowledgeable team are the best asset for a Recurring Billing business. We are experts in this field

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