Tech Support Merchant Accounts – IT Processing

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Last Updated on May 23, 2022 by Corepay

In a world booming with technological advances, it’s no surprise that tech support is also thriving. If you run a tech support business, you will need a tech support merchant account to grow your business.

To one’s surprise, tech support/IT services are considered high-risk by acquiring banks and credit card processors. Because of this, you will need to find a high-risk credit card processor that knows the ins and outs of the IT industry.

Not only can high-risk credit card processors get your tech support merchant account up and running swiftly, but they can also help ensure that your business is always compliant with the latest industry standards,

At Corepay, we are confident that we can lower your chargebacks ratio and make sure that your tech support business maintains compliance.

This article will break down everything merchants must know about tech support merchant accounts and what they need out of a credit card processor to be set up for success. 

Types Of Tech Support Businesses Corepay Supports

Corepay is proud to offer high-risk processing to all legal tech support businesses. Some examples of tech support businesses we commonly partner with include the following:

• System backups
• Computer training
• IT consulting
• Help desk support
• Cloud services
• Print services
• Network security

These are just some of the tech support companies we frequently work with at Corepay. If your business is legal, we are confident we can save you some money in processing fees and reduce your chargeback ratio.

Why Choose Corepay For Your Tech Support Company

With over two decades of high-risk processing, Corepay understands what merchants need to implement to grow their business to their desired needs. 

By choosing Corepay, you are taking a significant step forward in payment processing, and you will also have far fewer risks.

We understand the importance of cash flow at Corepay, and to keep your fees as low as possible, we waive all application fees, set up fees, and annual fees.

Corepay is proud to offer the following to all of our clients:

• Extremely competitive rates: We offer low rates to allow your business to continue to grow at omptimal profitability
• 24/7 customer service: Our team is dedicated to responding at times of the day to avoid any downtime in processing
• Approval Times: We typically can approve new clients within 24-72 hours, depending on the amount of information we have about your business and the specific industry you operate within
• High-volume processing: Our payment gateway, Solidgate, is explicitly designed for high-risk companies processing high volumes.
• Security: We have a PCI-Level 1 secure payment gateway that is monitored around the clock and regularly tested for security issues
• Waived application, set up, and annual fees

Technical Support Merchant Account Underwriting

To avoid any surprises in fees or terminations, Corepay performs their underwriting at the time of your application.

We aim to understand your business as a whole so we can best accommodate your specific needs. 

At the time of the application, we will look at your website to see your business as if we were your customer. 

The most important thing when applying for a tech support merchant account is your chargeback ratio. If you’ve had trouble in the past with your chargebacks, it is time that you choose a high-risk processor who can provide you with industry-leading anti-chargeback solutions.

At Corepay, we are confident that we can help you lower your chargebacks, ultimately saving you processing fees.

Applying

When applying for payment processing solutions for your technical support business, it is in your best interest to provide us with as much information as you can about your business. 

We will use this information to understand exactly what your business needs when it comes to payment processing.

Before applying, you will need to make sure that you have a fully secure and compliant website, as your website will need to be protected from malware and cyber-attacks.

• EIN
• Business address
• Business/personal financial history
• Business license
• Articles of incorporation
• Six months of processing statements
• Compliant website stipulating terms and conditions/refund policy

Why Are Tech Support Merchant Accounts Deemed High-Risk?

While there are a few different reasons of concern for most tech support companies, the biggest reason banks and processors stay away from is due to a large number of scammers in the industry.

 

Outside of shady businesses, there are also a couple of other significant concerns related to the tech support industry outside of dishonest companies. Let’s take a look at them in greater detail below:

• High chargebacks
• Fraud/scamming
• Security
• Reputation

Tech Support Chargebacks

While many scammers operate under the guise of tech support, chargebacks are also a genuine concern for legitimate tech support companies.

Customers are typically spending a hefty amount of money on tech support services, and when they aren’t given exactly what they were promised, there may take action and look into filing a dispute.

A high chargeback ratio is usually a sign that the business either has poor customer service, a non-compliant website, or doesn’t have the right policies on their website displaying refunds/returns.

When you choose a reliable payment processing partner, you will notice that your chargebacks should come down per month.

Lowering Chargebacks For Your Tech Support Business

There are a few constructive tips that can drastically reduce your chargebacks every month. One of the biggest things we always recommend to our clients is to make sure your website looks professional.

Always state your refund policy and 

provide excellent customer support. Not having reliable customer support can be the bane of your existence as a tech support merchant. You will build a terrible reputation and find yourself catching costly chargebacks frequently.

Technical Support Scam

One of the biggest scams on the internet today is related to tech support. What happens is that the scammer will claim that your device is broken and needs to be fixed, only to diagnose the problem, which is a non-existing issue. 

It’s a quick way for scammers to make a few hundred dollars, and it’s rampant in the tech support industry. One of the places you can expect scammers to be present is the service website such as Fiver. 

Your website design and layout can work wonders when it comes to proving you run a legitimate business. One of the simplest ways to show trustworthiness to your customers is by displaying real testimonials.

Security

Security is an issue with most high-risk businesses; however, tech support companies have a significant concern as sensitive information can be broken into and accessed via security breaches.

At Corlistepay, we offer our proprietary gateway, Solidgate, which was built to support high-volume merchants.

Reputational Risks

Since tech support businesses are used as fronts for money laundering/fraud schemes, there is an additional risk regarding reputation.

Banks and processors know that the tech industry comes with specific problems that can damage both the operating business and the processor.

When applying for payment processing, you should always prove that your business is legitimate and not being used for scams. 

Why Was My Tech Support Merchant Account Terminated On Paypal?

While Paypal might initially work as a quick solution, Paypal doesn’t do high-risk processing. Paypal will not perform their underwriting at the time of your application, meaning your business could be processing payments until they audit your account and deem you to be risky one day.

Unfortunately, there isn’t much you can do when this happens other than get set up with a high-risk processor ASAP to ensure you don’t lose out on many sales.

In fact, other low-risk processors such as Stripe or Square typically will not process for the tech support industry due to many scams. 

When applying, be sure to view the restricted businesses as you will determine if your industry is restricted. If you don’t see your industry, it’s important to note that the tech support industry is generally high-risk; therefore, you will likely not be accepted by that processor if you see restrictions to high-risk industries.

Tech Support Overview

It is estimated that $4.21 trillion dollars will be spent on IT services this year. This number would be 8 percent higher than it was the previous year. 

Let’s take a look below at the ten largest IT companies in the world today.

1. IBM
2. Microsoft
3. Oracle
4. Accenture
5. HP
6. SAP
7. TCS
8. Capgemini
9. Cognizant
10. Infosys

Wrapping Up

With over two decades of high-risk credit card processing experience, Corepay is confident that we can provide you with reliable credit card processing as well as lower your chargeback ratio.

While it is difficult to find a payment processor you can trust for tech support, there are quality choices that you can make.

Fill out an application below to see what Corepay can do for your tech support business.