subject: Is A Dating Site A High Risk Merchant? [print this page] Being attractive, witty, and all together perfect, I have never availed myself to online dating services. But, lots of my less perfect friends are trolling the internet, looking for a connection.
Online dating sites are one of the fastest growing segments of internet commerce. People from all walks of life take advantage of the sites to connect with potential mates. Of course, some dating sites are sexually oriented and need high risk merchant processing. These sites require a high risk merchant account because of adult content.
But the vast majority of dating sites do not have any adult content. What are the main reason dating sites need a high risk merchant account? The biggest reason a dating site is considered to be a high risk merchant is a subscription billing model. After an initial trial period, recurring subscription billing is required to obtain more information on potential dates. Subscription billing in general are prone to more chargebacks, an underlying cause for a high risk merchant classification. There is a big churn among members on dating sites. People come and go as they try different sites or give up the search.
People get discouraged or bored when they do not connect. Some find potential mates and no longer need to belong. Others believe the dating site did not deliver the promised results. Sometimes a member is simply embarrassed about having joined and even more embarrassed about cancelling a subscription billing membership. Often dating sites make it difficult for members to cancel subscription billing. There may be no customer service number prominently displayed on the site. Or, the member must search through the site to discover how to cancel. People do not want to take the time to do an extensive site search. They simply want to cancel a subscription billing option.
The smart dating sites make it easy for members to cancel subscription. The goal for the merchant is capturing as many cancellations as possible and giving immediate refunds. In this way, a high risk merchant dating account eliminates many chargebacks and maintains payment processing integrity. If a subscription billing model is properly managed, there is no reason for most dating sites to be considered a high risk merchant account. As long as chargebacks are low, most dating sites can easily change high risk merchant status to standard risk classifications. Getting rid of a high risk merchant classification will also result in reduced payment processing fees.
In changing from a high risk account category to regular account, dating businesses should seek a payment processor that provides special services for subscription billing models. Select a processor that gives you ways to increase revenues from each subscription billing recurring payment cycle and helps retain customers.
by: Tina Brandon
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