Merchant Account Services

Merchant Account Blog

Processing Annual Payments

Accepting annual payments is often a difficult thing to do with a true merchant account. Most merchant account providers will not accept merchant who accept annual payments. In fact, they typically will not accept semi-annual or quarterly payments as well. This includes memberships and subscriptions. Why? Because the potential for chargebacks is increased for these kinds transactions. This goes for any goods or services that cannot be delivered or services that last more then 30 days.

If you have an annual payment, be sure to let your processor know during the application process. Don’t let them discover this after your account has been established. This could result in your account being closed and your funds being held for up to six months after the annual payment is due to end.

Businesses that accept low ticket annual payments (under $50 per year) have a greater chance of being approved for their merchant account as lower ticket sales tend to have less chargebacks. This is usually a result of customers who figure it is just not worth the effort.

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