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Annual Subscriptions and Memberships
Unfortunately the banks that we use for our
merchant accounts, as well as Visa and MasterCard,
do not allow annual memberships and will
only allow memberships or subscriptions that
are debited either monthly or quarterly from
the customers credit or debit card.
The issue is with it being annual payments
(what happens if a customer pays for a years
membership but the business goes under after
6 months?) and not so much the amount of the
transaction. The problem worsens if 100% of
the business is based on annual memberships
or subscriptions.
- Memberships
/ subscriptions should not be longer than
3 months.
- T&Cs
must be stated clearly
- Refund
policy must be stated clearly
To read more about our
repeat billing / recurring payment facilty,
please click here
Vouchers
Consumers usually buy vouchers which are then
emailed to them for the desired products / services,
allowing them to take advantage of the offered
discounts. A certain number of vouchers have
to be sold for the discounts to be eligible.
If the desired number is not reached, consumers
are refunded and the discounted deals expire.
- Vouchers
should not be valid for longer than 3 months.
- T&Cs
must be stated clearly when voucher is bought
- Refund
policy must be stated clearly
- It
must be very clear for the consumer where
the shop / restaurant is located
- It
must be very clear for the consumer when the
voucher expires
- All
Vouchers must clearly list the amount of vouchers
that must be sold
- If
relevant number not sold then full refund
issued no later than 30 days
Collective Buying
Collective buying allows for direct cost savings,
both for the consumer as well as the business.
Consumers participating in on-line buying reap
the benefits of discounted prices for restaurants,
spas, attractions, etc., while organizations
can save money by directly reaching target markets.
With websites such as 'GroupOn' becoming popular,
we have seen a surge of similar style businesses
pop up. We can help these types of businesses,
however we do have some rules that you must
comply with.
- No
high risk products / services should be offered
- No
future payments (travel, tickets, events,
seminars)
- Product
/ service must not belong to a third party,
i.e. supplier must own product
- Merchant
must have at least 6-12 months trading history
Additional Information to be provided by
the Merchant
- The
merchant should provide a list of all the
cities that are serviced.
- Merchant
must have a contractual agreement with supplier
- A sample
of such a contract must be supplied
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