Subscription commerce has recently demonstrated significant growth, as consumers have embraced the convenience and efficiency that subscriptions deliver. Companies and shareholders love it too, because it ensures repeat customers on a regular basis, without the necessity and hassle of pitching and closing a new sale each time.
Some companies will replenish customers’ supply of a particular product, such as the Dollar Shave Club. Others attempt to delight and surprise their customers with a new and unique selection, such as Birchbox. But it is not a new phenomenon; magazine companies, nonprofits, and phone companies have long found great success using the subscription billing model.
Unfortunately, it can be complicated for subscription-based companies to obtain processing for a merchant account, and even once set up the overhead cost and efforts can be staggering. Subscription services are considered “high risk” processing accounts because they present an increased chance of chargebacks for the following three reasons:
As a merchant, you will often accept payments in a foreign currency. For example, a retail store may swipe an international card if a tourist makes a purchase, or an e-commerce site may accept orders placed by a customer from another country.
Whenever a foreign transaction occurs, there is always a surcharge. The difference lies in which party is responsible for paying that fee, and that depends on the way that the merchant account was set up.
The grocery industry is seeing some pivotal changes of late. No doubt about it, 2017 is going to be a defining year as consumers seek both convenience and speed in the shopping experience. They expect to be able to find what they’re looking for easily and to get in and out quickly.
When it comes down to it, aside from product placement and selection, payment plays a pivotal role in providing the ideal experience consumers will come to expect.
The top innovators in the grocery industry have demonstrated that a speedy checkout process has been the key to their success.
Over the next few years, the mag stripe is likely to disappear from credit cards entirely. This is due to an influx of fraud on non-chip transactions and the security gap that swiped transactions leave, as evidenced by several massive data breaches famously affecting large corporations.
Most recently, it was discovered that Madison Square Garden had been hacked for an entire year and that perpetrators gained access to tens of thousands of credit card numbers before the problem was discovered.
Fidelity is grateful to our merchants and partners for being a part of our family.
To express our thanks, we’ll be open on both Thanksgiving and Black Friday to service your business needs.
We hope we’ve made buying that turkey just a little bit easier!
American Express has its Small Business Saturday Program scheduled for this Saturday, November 26th. It is a great opportunity for businesses to promote themselves and encourage customers to spend since they are being rewarded with double points this year.
Fidelity Merchant Support talked to American Express to determine the requirements for this year’s program to pass them onto our merchants.
Fidelity Payment Services has been a fixture at Kosherfest, the largest annual Kosher food show, as the prime payment processor for the vast majority of the Kosher industry. We take the opportunity to connect with our merchants face-to-face, advising them on the latest news in the payments industry and even offering them a complimentary shoe shine!
Kosherfest is also a prime opportunity to hear direct feedback from our merchant on the services that we provide. Agents spoke to their merchants over the course of the two-day show and received a tremendous response from owners of businesses large and small.