Everything You Need to Know About Tech Support Merchant Accounts

In a heavily based technological world, one might not expect the Tech Support industry to be considered high risk.

After all, Tech Support businesses provide important services like computer repair, virus protection, and online support. When it comes to credit card processing, however, it’s a risky business.

Why is Tech Support Considered High-Risk?

Traditional banks are generally hesitant to provide merchant accounts to these types of businesses for a few main reasons.

Online fraud being one of the bigger issues. Scammers are known to prey on consumers under the guise of tech support professionals in order to gain access to their money and personal information.

Often the user is scared into thinking their computer is unsafe or might crash at any moment, and thus they pay to diagnose and fix a non-existing issue, and then pay more to make sure it never happens again. This is a quick and easy way for scammers to make a few hundred dollars on each consumer they con, and it is a rampant issue in the online world.

Another bank concern is the industries high chargeback ratios. Banks are strict with this because when you, the merchant, exceed the allowed chargeback ratio, it’s the processor who gets fined by the credit card companies.

These chargeback fines can add up quickly and result in your accounts termination if the disputes are not handled in a timely manner.

Lastly, transactions being solely made over the phone or internet are always considered riskier than in-person/card-present transactions.

Online transactions always come with the risk of fraud because there is no way to prove that it is the actual card holder who is using the card for any given transaction.

With such high costs, it’s no wonder that banks wouldn’t want to assume responsibility for these businesses merchant accounts.

So, what is a legitimate tech support business supposed to do? Fortunately, you can still accept credit cards.

You just have to understand that your business falls under a risky category and you will have to work with a “high risk” merchant account provider, such as Blue Wave Merchant Solutions, that can find a suitable home for your credit card processing needs.

Merchant Accounts for Tech Support Businesses

In credit card processing terms, Tech Support refers to any business offering computer or software services.

This might include:

    • Software Installation or Removal
    • Hardware or Router Set Up
    • Virus Scanning and Removal
    • Remote Browser or Email Support Services
  • Printer Support

While it is human nature to always look for the better deal, it may not be in our best interest when it comes to high risk merchant accounts.

Many “flat rate” processors such as Stripe, Paypal, or Square cannot actually support high risk credit card processing accounts because they are prohibited.

So, while you may be processing just fine under the radar, your tech support account will eventually get closed without notice once it is flagged because it was not placed in the right home to begin with.

The unfortunate truth is that high risk accounts do come with higher credit card processing rates and there is no way around this. Several factors will affect your final rate, which is why these rates are not generally published online.

We recommend setting up your Tech Support merchant account with a company, such as Blue Wave Merchant Solutions, that specializes in high risk merchant accounts and can find your business a more reliable processing home.

Applying for a Tech Support Merchant Account

To get started with the process, you can apply online by submitting your basic information to the high risk merchant account provider of your choice. 

A high risk specialist will then contact you to gather some more information about your business and request supporting documents to submit for processor review.

For faster approval, make sure you’re prepared with the most commonly requested documents for merchant applications. These include:

    • A valid, government issued ID
    • A bank letter or voided check
    • 3 months most recent bank statements
  • 3 months most recent processing statements (if applicable)

The processor will also request a Social Security or Employer Identification Number (EIN) and a secure and functioning business website or marketing material to refer to.

Though providing the above-mentioned documents does not guarantee your merchant account approval, you can help increase the odds by being proactive.

As mentioned earlier, chargebacks are a big factor when it comes to merchant accounts so it’s important to do everything you can to keep your chargeback ratios below 2%. 

Showing sufficient funds in your businesses bank account can also demonstrate to underwriting that you are able to financially cover your chargebacks if need be.

How Can Blue Wave Merchant Solutions Help?

Blue Wave’s specialty lies in finding quality, tailored payment solutions for each high risk merchant we can assist.

We have the expertise and banking relationships needed in order to provide legitimate processing homes for high risk tech support businesses.

With the proper merchant information and documentation, we can help merchants get approved for a credit card processing account in as little as 1 to 2 business days.

We want to help your merchant account thrive, so once approved, we can set you up with an optional chargeback mitigation program, a secure payment gateway and fraud filter for online payments.

Contact Blue Wave Merchant Solutions today to get your tech support merchant application started and see for yourself why we have a 95% approval rate.


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