Anyone onto charging cards monthly with a pos or something?

[dubstepper22]

Ok so I have for long thought about charging cc monthly. From what I have seen monthly subscriptions don't trigger 3ds the same way regular card transactions do. Does anyone have any hints as to where I should look at?

 

[Fraudbox]

Well, as already said monthly subscription and POS are not the same. With POS you need a POS that is able to do MO/TO transactions or CNP (Card Non Present) transactions, not all POS are able to this and in many countries banks only allow Hotels, Restaurants and high end shops (Gucci, LV, Dior, Prada, etc) to have this function available. There are also POS machines that allow you to generate a link so the client can pay online for the transaction. Some merchants use 2D security on this links, others don't...

Monthly subs is much easier in my opinion. Most gateways are non-vbv for Montly subs. I create a website on WIx and use Wix Payments as gateway. I chage 20€ a month on each card and I put it on a way that the transaction name shows as "Bank Fee". So when the CC owner see the transaction 90% of the time they really think is some bank account fee or the card monthly fee and they don't chargeback the transaction. I can tell you that in 1000 transaction, less then 200 get chargebacked. Also the price that you are getting your CCs is a big factor here. If you are paying 25€ for a card you need at least 2 months (Assuming you charge 20€ a month) just to win your money back and have some profit. So I wouldn't do this if you pay such a high price for a card. But if you pay 10€ for a CC, on the first transaction you already paid the cost of your card and you still have profit, so all the other months are 100% profit.

Also this system will not last forever. In 12 months usually you start getting more chargebacks, and with the chageback fees adding up it starts to be not so lucrative. What I do in this cases is a "exit scam" let's call it this way. So you go to your gateway dashboard (Remember that 12 months already pass, so your gateway trust you/your website) and then charge all the cards at once for a big ammount, let's say 300€. You can even do a bin search on all the cards you have on file and charge by their levels (Classic : Charge 100€, Gold: Charge 300€, Platinum: Charge 800€, Infinite/Signature: Charge 1000€). This will get you a lot of money for the last time. Usually the payout will be in 2 days, because at this time the gateway alreay trust you to pay in 2 days.

Then you close the website, open a new one and repet again. It's a nice side gig to win some money. You only spend 3/4 hours a month adding new cards to your site and handling chargebacks. In my opinion you should allways accept chargebacks. There is no point on disputing them (Because you will lose and your shop will be redflagged or closed) and this will help you to gain trust with the gateway. In the case of Wix Payments for the first 30/60 days they pay once a week, but after that they pay you in 2 days.