The selling of magazine subscriptions primarily takes place over the phone. This can be a problem when a business is 100% based on mail order / telephone order (MOTO) sales because it opens up the risk of fraud and other chargebacks. With no face to face sales, you can never be too sure if the person on the other end of the phone is using a stolen credit card or is an unqualified buyer. Because of this, the fraud chargebacks may be higher than normal.
Also, because of a large shift of information from paper to digital in the Internet age, the demographics of people who still purchase physical magazines tends to skew older. There have been cases of predatory selling to this demographic, and this bad behavior always ends up increasing chargebacks and creating problems for honest businesses. It only takes a few bad apples to tarnish an industry.
Finally, subscriptions for magazines can be for a period of 6 to 12 months, thus adding future risk down the road. Consumers can chargeback up to 6 months after the subscription has ended, which is why Paypal and traditional banks may shut these types of businesses down.
Fear not! Though magazine sales businesses are considered high risk, there are processors willing to issue a magazine sales business high-risk credit card processing account.
The rates will be higher and a reserve will be asked for – as with any higher risk company – but these types of accounts get approved every day!
Here at Limitless Payment Solutions we understand every business is unique and have vast experience with magazine sales high risk merchant processing. We work with may different processors that will accept a business, whether it is a startup or whether it has been in business for years and is looking for more volume. All high-risk merchant accounts should have more than one processor.
Limitless is here to help!
Give us a call right now at (516) 384-6655 or hit apply now on this page and we will be in touch with you very soon.