Over the past decade, recurring payments, especially for streaming services, gym memberships, or magazine subscriptions, have made it clear that this is the model for the future.
And let’s not forget that major corporations like Adobe or Microsoft are moving to the recurring automatic billing rather than relying on one-time purchases for their products.
Due to the appeal of recurring revenue streams along with the push from the COVID-19 global pandemic, the subscription economy is no longer a theoretical concept but an economic reality.
If you don’t believe us, take a look at the results, which speak for themselves.
The subscription economy is expected to reach $1.5 trillion by 2025.
69% of households have at least one subscription to a video streaming service.
The average subscription business is growing 30%–50% annually.
But along with the accelerated adoption of recurring payments came the need to regulate the new landscape to ensure proper operational standardization and security.
So, how do you handle compliance effectively without afghanistan telemarketing list losing your focus on what matters most, your product?
Well, here's a friendly suggestion: consider teaming up with a Merchant of Record.
Once we explore the payment regulations your subscription business needs to follow, you'll quickly see why a partnership with an MOR makes all the difference:
The 4 Recurring Billing Regulations To Follow
Is The Merchant of Record a Solution?
How Can PayPro Global Help?
4 Recurring Billing Regulations To Follow
One of the major problems subscription businesses face is the rise of chargebacks.
Customers are issuing these disputes on their subscriptions for a number of reasons. While card schemes cannot directly influence consumer behavior, they can regulate the recurring billing landscape and set universal guidelines merchants must follow.
These rules prioritize consumer protection, emphasize the need to directly manage disputes, and maintain clear documentation on recurring automatic payments, which is vital in order for merchants to win chargebacks.
