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Subscription and free trial offers processing
Subscription Merchant Account for Continuity and Trial Offers
A subscription merchant account is approved on the strength of your consent and cancel screens. Recurring revenue is exactly what acquirers like, but negative option billing, where silence means you keep paying, is a category Visa and Mastercard both watch by name.
Short answerRead this first
How do subscription merchants get approved?
Show express consent at signup, an emailed copy of the terms, reminders at least seven days before trials convert, easy online cancellation and a descriptor that names your brand. Subscription continuity merchant services providers review those screens closely before rates or terms are discussed with you.
The right setup for subscription merchants
What fits
- A billing platform with clear trial terms, renewal reminders and a one click online cancel.
Why it matters here
- Negative option billing is in a watched card network tier, and the checkout page is what an underwriter reads first.
Most common setup mistakes
- Trial terms hidden below the buy button
- No reminder email before the first full charge
- Cancellation that requires a phone call
Send us one statement and Dewey will tell you if your setup fits your subscription business.
Step 2
Optimized POS and payment setup
We set up your trial, renewal and cancel flows so the terms are clear at checkout, and connect dispute alerts to catch problems early. Your billing platform stays; the setup around it gets fixed.
Step 3
No long term contracts. No termination fees.
Subscription businesses change offers often, so a locked contract works against you. We work with no long term contracts and no early termination fees.
Step 4
Keep more of every swipe
Subscription statements often include per renewal fees, account updater fees and alert fees that add up. We break them down so you see your real cost per subscriber.
Network coding for continuity billing
Visa places subscription negative option merchants under MCC 5968 in Tier 3 of its integrity risk program, the tier for businesses with higher risk of deceptive marketing without controls. Mastercard requires acquirers to register merchants that use negative option billing for physical products.
Software, memberships and boxes all count when the plan renews automatically after a trial or introductory price.
Visa's 2020 free trial rules
Since April 18, 2020, Visa has required merchants offering trials or introductory prices to get express consent at enrollment, send the terms electronically even when nothing is charged, and send a reminder with a cancellation link at least seven days before billing when a trial ends or terms change.
Visa also requires an online cancellation method about as easy as unsubscribing from an email list, and a descriptor such as trial on the first charge after the trial ends.
Annual plans deserve the same reminder discipline, since a forgotten yearly renewal produces a larger and more painful dispute than a monthly charge ever does.
Federal law after Click to Cancel
The FTC amended its Negative Option Rule in 2024 with a click to cancel requirement, but on July 8, 2025 the Eighth Circuit vacated the rule because the FTC skipped a required preliminary regulatory analysis. The Restore Online Shoppers' Confidence Act still applies and requires clear disclosure, express informed consent and a simple way to stop charges.
Many states also have automatic renewal laws, so continuity merchant account services files should note the states you sell into.
Where subscription accounts break
Forgotten trials become disputes, and Visa expanded issuer rights under its misrepresentation condition when it adopted the 2020 rules. Visa flags US merchants at a 1.5 percent fraud and dispute ratio with 1,500 events, and Mastercard starts at 1.5 percent with 100 chargebacks.
Dunning emails, pause options and a cancel button that works the first time keep those numbers low.
Designing a compliant checkout
Put the price, billing frequency, trial length and cancellation method next to the button that starts the plan, and require an unchecked box the customer must tick. Send the confirmation email immediately, schedule the seven day reminder automatically, and link the cancel page from every email and the account menu.
Test the cancel path monthly. A broken link turns a simple cancellation into a chargeback.
SaaS, boxes and memberships
Software plans, subscription boxes and gym or club memberships are all subscription merchants, but each brings different dispute patterns. Boxes face delivery disputes, software faces unused account disputes and memberships face cancellation disputes. Tell the acquirer which applies and how you handle it.
Descriptor and receipt details
Use a descriptor with your brand name and a support phone number or web address so a customer checking a statement can reach you instead of the bank. Visa requires a descriptor such as trial on the first charge after a trial ends, and receipts that state the trial length, the amounts and dates and how to cancel.
Keep copies of each email you send. When a dispute arrives, the consent record, confirmation, reminder and receipt together make a complete response.
How we place subscription merchant services
We review your checkout, emails and cancel flow against the rules above, then place the file with acquirers that register 5968 merchants. Reserve terms are set by the acquirer, in writing, before you sign.
Bring a screenshot of every step from the landing page to the cancel confirmation. That single document answers most of what a reviewer will ask about your subscription merchant account.
Dewey Kopenga, in payment processing since 2018, reviews every file himself before it goes to underwriting. Send a statement for a free review of your current subscription merchant account.
What to check on your subscription statement
We check these and every other line during a merchant statement analysis. New to statements? Read how to read a merchant statement.
- Account updater fees on every card
- Alert service fees billed per dispute
- Higher rates on recurring card not present charges
- Holds triggered by trial conversion spikes
Common questions
Still not sure? Ask us directly.
Is the FTC Click to Cancel rule in effect?
No. The Eighth Circuit vacated it on July 8, 2025. ROSCA and state automatic renewal laws still apply.
How early must I remind trial users?
Visa requires a reminder with a cancellation link at least seven days before the first charge after a trial ends.
Do software subscriptions count as negative option?
Any plan that renews unless the customer cancels can fall under negative option rules, including software and memberships.
What descriptor does Visa want after a trial?
A descriptor such as trial or free trial on the first charge after the trial period ends.
Do subscription merchants need registration?
Visa lists negative option merchants under MCC 5968 in Tier 3, and Mastercard registers negative option sellers of physical products.
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