By using Premium SMS (or SMS Billing), you can charge your customers for the content they receive based on a one-time payment (such as paying for a ringtone) or subscription based programs (e.f A Joke A Day for 25 cents per joke).
Once users subscribe to your mobile program, you will send the content to them using the a SMS Gateway and identify the charge that should be applied on the end user’s bill. At the end of the month, carriers review revenue on your program and total charges settled successfully on users bills. Your aggregator will aggregate all payments on your behalf.
- Double Opt-in: Key to the transactional process, the double Opt-in means user confirms his/her agreement with the charges being applied.
- Price Points: Price Point means they charge that will be applied to the mobile phone bill. Applying a wide range of price points on users cell phones under one program (up to $10 per charge with most US carriers).
Applying charges on cellphone requires approval from carriers up front. Some aggregators obtain such approval for certain programs (e.g. to sell ringtones) so you won’t need to apply.