Why is Continuity Considered High-Risk?
Not all payment processors are equipped to handle continuity billing businesses. Many classify the industry as "high-risk" due to factors such as:
- Subscription/rebill models often result in customer confusion or “friendly fraud”
- High chargeback ratios from forgotten or auto-renewed transactions
- Poorly disclosed trial periods or cancellation policies trigger disputes
- FTC and card brand scrutiny over continuity compliance
- Failed rebills and declined renewals increase refund requests