merchant account

Does My Subscription Business Need a Merchant Account?

As we move to a cashless society, and especially when you are a subscription business owner, accepting credit cards is a no-brainer. (When was the last time you carried cash in your wallet, or somehow beamed it to Amazon for your latest audiobook, right?) Technically, your business can process credit cards whether or not you have an associated merchant account…but do you want to? There’s confusion around the payment back end, especially for startups and first-time business owners. So, how do you know if you need a merchant account? To make the best decision for your business, read on. You’ll learn: What a merchant account is and how it works How a merchant account works The benefits of a merchant […]

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key metrics

KPIs Subscription Businesses Use to Measure Success

One of the biggest mistakes that a subscription business can make is measuring their KPIs in the same way as a business that relies on one-time sales. At best, this doesn’t give you the full story, and at worst, this leads to flawed decisions. The key difference is clear: subscription businesses are all about recurring revenue. Because of that, traditional ecommerce KPIs like average order value, cost of goods, or gross profit don’t work as well for getting insight or making decisions. So what metrics should you be tracking? Six of the most important KPIs for subscription businesses include: Churn Customer Acquisition Cost (CAC) Monthly or Annual Recurring Revenue (MRR/ARR) Gross Margin Average Revenue Per User (ARPU) Customer Lifetime Value […]

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reducing credit card declines

How to Reduce Customer Credit Card Decline Rates

According to a survey from, 12 percent of all credit and debit card users in the US experience a card decline each year. The cost to the merchant was significant: 2.6 percent of all income orders and 3.1 percent of all orders over $100. Even worse, a third of customers who were declined blamed the merchant for the decline, regardless of who was actually at fault. Yet many of those payment declines had no relation to the customer’s honesty, credit, or bank balance. For example: The card provider or the processing service might have experienced downtime or some other internal problem. A customer may have made a purchase that was “out of character,” leading the provider to flag a […]

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