If you run a tech support merchant business you need reliable credit card processing at reasonable rates. Unfortunately, there are not many Tech Support merchant account providers that provide Indian, U.S. or U.K based tech support merchant businesses with merchant accounts and even fewer that offer reliable credit card processing at affordable rates.
This is because the tech support merchant industry is often regarded as “high-risk” due to the industries potential for a high chargeback rate. Consequently, if you’ve already applied for a Tech Support merchant account for your business, it’s quite likely that you’ve been rejected by a traditional low-risk credit card processing company. However, there are a few good options. Finding the best payment processing solutions can be difficult for tech support merchants operating internationally. Whether you offer remote tech support assistance or in-office computer services, we at Ipaytotal provide customizable tech support merchant accounts.
With us, you will be connected to a vast network of domestic, offshore and international acquiring banks that can approve you regardless of your geographical location. The tech support merchant industry is considered as one of the fastest growing industries. But despite that fact, many banks aren’t eager to approve tech support merchant accounts for businesses in this sector. They need tech support merchant accounts to allow them to process payments, including credit card purchases. Tech support merchant accounts provide credit card processing solutions to tech support businesses. Tech support merchants are considered ‘high risk’ by traditional merchant processors and getting a tech support merchant account can be very difficult.
Why It is so hard to find a reliable credit card processing services as a tech support merchant
It is really hard to find a reliable credit card processing services for a tech support merchant. It is because when banks hear the words “tech support” they can’t help but associate it with the rampant “tech support scams”. Scammers have consistently use the guise of “tech support” to persuade people of their personal information and their money. One of the most common thing that these scammers do are to send pop-up messages that warn users about computer problems.
The supposedly “techs” will call and pretend to help users claiming that they have detected viruses or malware on the person’s personal computer and will persuade the person to enroll in a subscription plan that is a made-up solution to a non-existent problem and protect it from other problems in the future. Scammers do this over and over, being able to steal many people’s personal information and money, it was reported by the Federal Trade Commission that the estimated consumer’s loss from tech-support scams is about $24.6 million in 2015 and 2016. On average, a consumer loses about $280 on each scam.
The rampant fraud in the tech support merchant industry associated with high chargeback makes it hard for legitimate tech support businesses to accept credit card transactions because banks don’t want to do business with them. Most of the high risk merchant account provider offers tech compliant support payment gateways for authorizing credit card transactions along with tech support merchant processing services. Their services may also include remote tech support businesses, chargeback management tools, and fraud filter for online payments.
Generally, a tech support online or retail business can open a tech support merchant account by finding the right payment processor and by reading the documents required by the payment processor like one valid government-issued identification card, bank letter, processing statements, recent bank statements if applicable, Social Security Number or Employer Identification Number whichever is applicable and chargeback ratios that must be under 2%.
One factor that should also be considered in choosing the right payment processor to open up a tech support merchant account is the credit card processing volume cap. This means that merchants are limited by a certain determined dollar figure that they can accept credit cards. Once the limit is reached for the month, it is as if the merchant’s business is closed because it could not accommodate card payments anymore.
Processors and underwriters review and validate that the tech support merchant business applying for a merchant account is a running legitimate business with good reputation by going through its submitted documents. They also get a total view of business risk, merchant’s credit scores, and credit card processing history, bank statements, and its website. Privacy and refund policies must be clearly stated in the website, otherwise, it will have a negative impact against the merchant. These things must be avoided to avoid increasing the risk to a processor – negative bank account balance, unpaid bills and late payments, and a history of high chargeback rates.
Merchants must make sure that outstanding bills and debts are taken care of, a substantial amount of money in the bank is one of the things that must be prepared for the application review. The merchant must be able to convince and show to the processor that they are not taking any undue risk if they will approve a tech support merchant account.
Remote tech support merchant account holders faces high chargebacks because unfortunately, these tech support businesses are poorly operated businesses who don’t have excellent customer service leading them to have many dissatisfied customers. It must be noted that unhappy customers lead to a high volume of refunds and chargebacks. These tech support businesses offer services that are not tangible in nature and the lack of a tangible item can make some customers feel like the purchase they made is invaluable. It is a must that a complimentary follow-up service must be given to make the customer feel appreciated.
Also, many chargebacks are results of customers not being able to remember or recognize the said transaction reflected in their credit card statements. To prevent this from happening there must be a clear billing descriptor that includes the merchant’s name and contact number.
Processors care much about chargebacks and chargebacks even of a small amount still contributes to the chargeback ratios. Excessive chargebacks are a sign that the business model of the merchant is flawed since chargebacks are caused by the dissatisfaction of customers, problems in customer service and no sufficient fraud and chargeback mitigation plans.
Credit card processors get penalized for a large volume of chargebacks exceeding the 2% limit from credit brands like Visa or MasterCard. The fines can sum up to thousands of dollars thus making merchants with high chargebacks a financial burden for them. That is why they can terminate those with 3% chargeback ratio. And if the business lost its merchant account, it became very difficult for them to get approved for a new one.
Payment Processing For Tech Support
Chargebacks and friendly fraud are common in certain industries, and tech support merchant industry is one of them . Too often, a tech support merchant is consulted for solutions, which they deliver, but are then faced with a chargeback, the consumer claiming the opposite.
We see it happen all too frequently.Recently, Ipaytotal partnered with a new, robust payment processing solution for high risk merchants that can be effective in keeping chargeback rates down and sales up.For Tech Support Merchant industries that suffer from high chargeback rates, a new solution which Ipaytotal has newly launched,pay-by-gift-card-solution, is ideal.
WHY IS TECH SUPPORT MERCHANT ACCOUNTS CONSIDERED HIGH RISK?
Remote tech support merchant account is considered a high risk industry for several reasons:
- Remote tech support deals with card-not-present transactions. In other words, the customer’s credit card is not present at the merchant’s point of sale.
- Chargebacks are unfortunately common in PC tech support, when a customer disputes the charge with his/her credit card company and earns their money back.
- Tech support merchant companies often operate in different locales around the world than their customers.
HOW DO I PREVENT CHARGEBACKS?
By following the mentioned as below, any merchant would be able to control chargebacks
- Have a clear billing descriptor with your company name and contact number. Many chargebacks are the result of consumers not recognizing purchase.
- Communication: Utilize automatic email receipts upon completion of a transaction.
- In a dispute, offer the customer a refund. A refund is ALWAYS better than a chargeback.
If you’re a tech support merchant dealing with high chargebacks, consider utilizing ACH payment processing or pay-by-gift-card-solutions for your business.