How do I get a tech support merchant account?
This is a pretty basic question, and the answer is pretty simple… apply with a merchant account provider. They’ll complete the application, send it to their underwriting department to review the application, and once approved, you’ll be ready to accept payments. That simple answer, however, glosses over the basic complexity that most processors do not serve the remote tech support industry, which is dealt with in the next question.
How do I find a tech support merchant account provider?
If you owned a retail business, almost every bank and processor would be happy to provide you with processing. Unfortunately, for remote tech support, that isn’t the case. That’s not because the salesperson doesn’t want your business, but rather because their sponsor bank or their processor will not approve remote tech support merchant accounts because of the chargeback risk. So, the first question you should ask when calling a high risk merchant account provider for tech support is, “Do you provide high risk merchant accounts for tech support businesses?”. And then ask… “What about remote PC tech support?”. And finally… “Are you sure?” Because often the salesperson will tell you initially that they do, but then you complete the application process, only to find out that their underwriting department doesn’t… thanks to chargebacks.
- Why do tech support businesses get lots of chargebacks?
- Remote tech support as an industry is prone to high chargebacks, (and thus categorized as high risk credit card processing) for a few reasons:
- Some tech support businesses are poorly run, and do not deliver adequate customer service;
- Some tech support customers are unsophisticated and do not know to call the customer service number listed on their credit card statement;
- Many tech support customers do not receive something tangible for their purchase as opposed to a goods provider, leading some customers to not feel like they got good value for their money days or months after the transaction is concluded particularly if the tech support company does not provide complimentary follow up service;
- Typically, tech support service is relatively expensive, often costing into the hundreds of dollars, which is a high enough ticket that dissatisfied customers;
- Most remote tech support businesses are small businesses without a strong brand name. Thus, dissatisfied customers may not be presented with all of the refund opportunities they would from a larger company, nor have the name recognition of their service provider prompting the customer to contact the merchant directly;
- Many tech support business owners do not understand that a chargeback, often regardless of whether won or lost, contributes to their chargeback ratio, thus they do not immediately grant refunds, enroll in chargeback alert programs, nor fight illegitimate chargebacks.
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