Summary
In this episode of True Fraud , host Pablo Torres dives deep into the world of recurring payments and subscription models. He explores the convenience of subscription-based payments and the reduced risk of merchant initiated transactions (MITs).However, although this business model has its’ upsides, Pablo explains the challenges that can occur for your business and the snowball effect of chargebacks or customer complaints when subscription business don't manage key aspects of their business.
Key topics include:
• Defining recurring payments and how they differ from one-time payments.
• The importance of distinguishing between customer-initiated transactions (CITs) and merchant-initiated transactions (MITs).
• Strategies for mitigating fraud risk in recurring payment systems.
• The potential for increased chargebacks and disputes, especially with unclear subscription models.
• The impact of clear descriptors on preventing fraud and chargebacks.
Resources & Links:
Learn more about Reach: https://www.withreach.com/
Find more cross-border ecommerce knowledge https://www.withreach.com/network
🎧 Tune in now and follow True Fraud for more expert takes on financial security.
Key topics include:
• Defining recurring payments and how they differ from one-time payments.
• The importance of distinguishing between customer-initiated transactions (CITs) and merchant-initiated transactions (MITs).
• Strategies for mitigating fraud risk in recurring payment systems.
• The potential for increased chargebacks and disputes, especially with unclear subscription models.
• The impact of clear descriptors on preventing fraud and chargebacks.
Resources & Links:
Learn more about Reach: https://www.withreach.com/
Find more cross-border ecommerce knowledge https://www.withreach.com/network
🎧 Tune in now and follow True Fraud for more expert takes on financial security.
Transcript
Pablo Torres: Hello. Welcome to the new episode of True Fraud. My name is Pablo Torres. I'm your host. And today we're going to talk about the risks associated with recurring transactions.
If you want to learn more about how to mitigate the risk of your business, you can go to withreach.com . Before we jump into it, I think it would be a it's a good idea to define what are recurring payments, AKA subscriptions. I think these have been around for a long time now, but they're definitely getting a lot more traction lately. The reason for that is because there's a lot of businesses nowadays, could be digital, SaaS, physical products that are selling products that are being shipped or delivered on a monthly basis. Right? If you have a digital product, it might be a a digital license for some sort of, software that you're selling or something like that. And then this type of solution is comes very handy for your business. These recurring payments differentiate themselves from kind of like your one time payment b...
If you want to learn more about how to mitigate the risk of your business, you can go to withreach.com . Before we jump into it, I think it would be a it's a good idea to define what are recurring payments, AKA subscriptions. I think these have been around for a long time now, but they're definitely getting a lot more traction lately. The reason for that is because there's a lot of businesses nowadays, could be digital, SaaS, physical products that are selling products that are being shipped or delivered on a monthly basis. Right? If you have a digital product, it might be a a digital license for some sort of, software that you're selling or something like that. And then this type of solution is comes very handy for your business. These recurring payments differentiate themselves from kind of like your one time payment b...