If you own or manage an online tech support company you may already know how hard it is to get approved for a merchant account.
Typically your business is classified as “high risk.”
Though there are several reasons why an online tech support company needs a high risk merchant account let’s first define what makes an account high risk.
Understanding high risk merchant services
A high merchant account is a special type of account designated by businesses deemed to be high risk by the processing industry.
Any type of business fall into high risk for the following reasons:
- Business type: e.g. tech support, typically higher chargebacks have been seen
- High average ticket size: e.g. over $5000 per transaction
- Fulfillment longer than a month: e.g. all types of travel accounts
- Higher than 1% in chargebacks: this could happen with any online merchant
- Credit and financials: a low credit score or not enough money to support volume
So it’s not a “one size fits all” approach when it comes to getting a high risk account. Which means that many merchant account providers can’t help you get an approval (or re-approval if your account has been closed) simply because of the different high risk criteria listed above.
When it comes to getting an account, and keeping it in good standing, it takes a trained expert that deals only in these types of accounts to get your business approved.
How to get approved for a tech support merchant account
Tech support companies sometimes have unique issues as in their customer service center may be out of India.
This usually requires that the signer on the account is a U.S. citizen with a social security number in order to get an approval. There are many processors that will deny an account if this is not handled by a high risk professional.
Furthermore, tech support companies should always have more than one account. Sometimes this is required because of the high volume typically associated with these type of account, which means they need to spread out their monthly processing volume over three accounts with different processors.
Here are some things you’ll want to watch out for:
- Representatives that promise the world — if it sounds to good to be true, it is.
- If the processor does not ask for any reserve on the account beware as this is not a high risk processor and you will be shot down and your money held.
- Lastly representatives that do not even ask to see your website and get it pre-approved first or just want you to fill out an application without listening to you.
There are many representatives out there that only have limited experience in dealing with tech support accounts and other high volume merchant accounts, and for that matter all high risk accounts in general.
Make sure you work with someone who will guide you to a high risk specialist with many years in dealing with just high risk accounts, whether it is domestic or offshore.
That way you will have a solution that is right for you.
Make sure they have long standing relationships with processors. Remember, it is not only getting approved that matters — it’s just as important (if not more so) to keep your account up and running.
So, if you have a brand new business (or an existing one) that needs to handle more volume, maybe it’s time to finally…
I hope you found this information helpful. Please feel free to share your comments below.
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