Hello Everyone, Who knows which gateways and amember plugins support authorize now, bill later free trials? Here's how this type of trial works. If you purchase a trial subscription, you agree that we immediately authorize your credit card for the monthly recurring amount. We only charge (Bill/Capture) that amount to your credit card after the trial is over and if you elect not to terminate your trial subscription prior to becoming a regular subscriber. Also, who knows how long you have after authorizing a credit card to bill it before you need a new authorization?
aMember trial works in other way - it charges member's card $1.00 and void it immediately. it is just to verity user card. aMember doesn't verify that card has necessary amount. aMember also allows you to setup trial this way that user is unable to signup for trial twice with the same card.
Thanks for respoding Alex. Don't you think that the method I suggested is more elegant? This way you can be assured of getting paid. Any plans to implement it in this way? I believe that this is how the more sophisticated subscription sites do it. Also, you are voiding the $1 charge before it is submitted in your daily batch not refunding it right? I know refunding it would negatively affect you standing with your merchant bank but I don't know if voiding it does.
Yes, the way you described is more elegant. However, it will lock money amount on user card, and it will take 45-60 days to unlock even if user cancels trial. It may cause lot of negative feedbacks from dummy users (there are always such persons, you know) Yes, voiding transaction is immediate, so I believe it is a void transactions, not a refund. BTW, I never heard that count of refund transactions makes any sense. I believe only chargebacks are valuable.
Exactly, taking a lien against available funds is exactly what we are trying to achieve -- it's the only way to be sure of getting paid. Actually, we have found that an authorization lasts only 3 to 7 days - I wish it lasted as long as you say. I think you can confirm this with VISA. The risk as I see it is that if the trial is longer than the authorization and the auth has dropped off before the cardholder is billed. You're right about chargebacks, they are much worse on your merchant account than refunds. However, your refund rate most certainly impacts negatively on your risk rating with your merchant bank. The bank fears that a high return rate indicates a poor product and the bank does not want to be stuck refunding your customers if you go under - so I would be concerned about how you have implemented free trials presently if the bank considers a void the same as a refund. What I don't know is if the void counts as a return because it would seem that it is not being sent with your batch. I really hope you will fix your software to give free trials both your way and the way I suggested. In fact, we will pay you for this feature is you take on the project in the RFP I sent you.