Subscription billing is the revenue model that powers most direct-to-consumer nutraceutical businesses, and it is the primary mechanism through which nutraceutical merchants accumulate the chargeback rates that lead to MATCH list placement. The autoship model generates recurring charges that customers sometimes forget they authorized. Billing cycles that arrive before the customer has consumed the previous shipment create disputes. Cancellation processes that customers find difficult drive them to dispute charges rather than navigating the cancellation flow. Each dispute is a potential chargeback, and chargebacks accumulate in the monitoring program ratios that conventional processors track.
The supplement merchant's ability to reduce this dispute rate through operational changes is limited, because the dispute behavior is partly a function of how subscription billing works in the conventional card processing environment rather than entirely a function of how the merchant manages its customer relationships. A nutraceutical brand can implement every available chargeback mitigation strategy and still accumulate disputes at a rate that keeps it in monitoring program territory, because the underlying mechanism that converts customer dissatisfaction into a financial charge against the merchant's account is built into the card processing system rather than into the merchant's operations. The supplement MATCH list crypto payment solution 27 Blockchain provides removes this mechanism from the payment infrastructure, which is why it addresses the problem structurally rather than symptomatically.
