Those in the tech support business may find themselves classified as a high-risk merchant without really understanding the implications. With a high-risk merchant account, tech support businesses are able to get the support and credit card processing they need while mitigating risks, but there is more to it than just that.
Overview of Tech Support Businesses
Technological industries around the world are rapidly growing as we become more reliant on technology in our daily lives. In fact, experts project that the global tech industry will reach $5 trillion this year, with a growth of 4 percent.
Companies focused on tech support are responsible for ensuring that the technology other businesses use remains functional, which keeps their operations running efficiently. Some examples of tech support include services like removing viruses and assisting with diagnoses. As tech companies grow, so do tech support businesses.
Unfortunately, tech support businesses are often flagged as high-risk merchantsand so they must find high-risk payment processing. Part of the reason why tech support companies are considered high-risk is because of illegitimate tech support businesses, both past and present, that scammed users. These illegitimate scammers have hurt the reputation of tech support as a whole, leading to associations with higher levels of fraud as well as the accompanying chargebacks.
This association with chargebacks and fraud makes it more challenging for legitimate technology support businesses to get the merchant services they need. There are additional risks due to the fact that the credit cards are not typically present during the transactions and card-not-present transactions tend to be higher risk.
What It Means to Be a High-Risk Merchant
Knowing that a tech support business is likely to be considered a high-risk merchant is one thing, but it is important to understand what it means to have a high-risk merchant account. In most cases, those judged to be high-risk will need to undergo additional scrutiny to even receive approval for their merchant services. Finding a payment processor that will provide merchant services can also pose a challenge as some will not work with high-risk merchants.
Once they do receive approval, these high-risk merchant accounts are usually linked to higher fees and higher processing rates. This is, unfortunately, a standard practice across the credit card processing industry.
Benefits of Being a High-Risk Merchant
Despite the additional scrutiny, increased chances of denied services, and higher fees, there are some advantages associated with being a high-risk merchant. To start, high-risk merchants will have the option to accept more payment types than other merchants.
Additionally, merchants with low risk are only able to collect specific revenue types via credit card. By contrast, high-risk merchant accounts have fewer limitations in this respect, so they are able to offer recurring payments, sell a greater range of services and products, work internationally, and process greater sales volumes during special sales and launch events.
By contrast, low-risk merchants tend to have severe restrictions in regards to international transactions due to the risk level associated with them. High-risk merchant accounts, however, benefit from reduced restrictions, meaning there are fewer obstacles to global expansion.
How Tech Support Businesses Can Mitigate Risk for Card-Not-Present Transactions
Tech support businesses and other companies that make use of high-risk payment processing can mitigate the risk associated with card-not-present transactions in a few ways. Start by gathering as much information about the customer as possible, including the shipping address, the billing address, email address, and their phone number.
Tech support businesses should also gather all of the essential credit card information. This includes the name in the same form as it is on the card, the credit card number, expiration date, and the CVV code.
Choosing a High-Risk Merchant Account with BankCard Services
Tech support businesses will be the most successful at opening a high-risk merchant account with an established provider, such as BankCard Services. Because BankCard Services specializes in high-risk merchant accounts, your chances of approval are incredibly high. The specialization in high-risk payment processing also allows BankCard Services to offer competitive rates and provide the solutions and tools required by high-risk merchants.
BankCard Services works with merchants of all types, including tech support businesses, to get approval for their merchant accounts and then retain that approval. BankCard Services also offers additional tools for fraud protection and chargeback mitigation.
Contact BankCard Services today to start the approval process for your high-risk merchant account and take advantage of our unique tools for your tech company’s credit card processing needs.