Posted by admin on Jun 10, 2015


Music, videos, mobile apps, software, eBooks, any kind of streaming media.  All these types of products fall into the category of digital goods.

It's no surprise that there is a huge demand for digital goods.  The latest edition of the Global entertainment and media outlook reports worldwide entertainment and media revenues will rise at a compound annual growth rate (CAGR) of 5.1% over the coming years, from $1.74 trillion in 2014 to $2.23 trillion in 2019.

The market is going to continue clamor to for digtal services.  Traditional media has fallen by the wayside.  Digital delivery of content gives customers the flexibility to access content anywhere, on any device, and at any time .

Recurring Billing for Digital Content Merchants

Any merchant that produces and sells digital content should consider implementing online payments as soon as possible, while being well informed about the potential pitfalls.

There are many reasons that make digital goods particularly profitable when sold online. The biggest advantage results from the recurring payment feature. Recurring payments stabilize cash flow while extending the lifetime value of a customer.

Subscription billing automates the payment process, making it easier for merchants to manage payments.  Customers like the convenience of a recurring payment with no additional action necessary.

It is important, however, for merchants to make sure the customer understands and accepts the recurring payment plan.  And merchants need to make it simple & easy to cancel the service.  Otherwise there is a risk of chargebacks.

Selling membership-based digital content online means that the customer will find it particularly easy to choose specifically what package they prefer from the current offer. In addition, they will be able to use the support options accessible on the website, therefore making customer service less costly. Finally, the merchant will have the opportunity to quickly advertise and sell new products through the website and newsletters.

Reasons Digital Merchants are Considered High Risk

Merchants that offer digital content are frequently considered high-risk due to a variety of reasons which result from the innovation specific to this industry. Fraudsters target digital goods because they are valuable and easy to monetize.

Since no physical address is required for delivery, traditional means of verifying the identity of the customers do not apply. To make matters even more difficult, digital services can be accessed via multiple devices and IPs, adding extra layers of anonymity that work in favor of the fraudster, while the merchant is left dealing with the chargebacks.


The world is quickly moving to more and more digital distribution of content and entertainment.  To take advantage of the extraordinary opportunities available in the digital market place, you need payment processing accounts.

Yet, choosing a right payment processor is crucial.  Not all processors are the same.  

Be sure your processor has experience in processing for digital merchants.  And can provide you high volume processing capacity to accommodate growth. 

To protect your business, enable special fraud fighting tools within your high risk gateway. Take advantage of early warning chargeback systems to help mitigate risk. 

There are excellent payment processing solutions that meet the special needs of the digital marketplace.  Investigate carefully, chose wisely.  And then watch your profits grow.

Are you searching for payment processing accounts for your online digital business?