Outsourcing is getting a lot of press, but it is still a big moneymaker. Many are looking to get into the tech support industry, but are not sure how to deal with the funding issues. Funding an outsourcing business is risky, and most merchant account processors will not deal with it. Those who will typically have stiff regulations that you need to know about beforehand. There are many things that you need to ask before you sign on with any merchant account processor – but especially if you are operating a tech support business.
First off, you need to know their stance on chargebacks. Chargebacks will occur in tech support businesses, and it is up to the merchant account provider to decide how to ultimately deal with your account. After two or three chargebacks, inexperienced merchant account providers will close an account – leaving you without anyway to accept payments. This is something that should not happen, yet it does. Be sure that your potential tech support merchant account provider understands this issue, and will not act hysterical when it happens.
Another issue comes with processing fees. Since tech support merchant accounts are considered to be high risk merchant accounts, processing fees are typically higher than other accounts. Some, such as EMB, have industry-standard processing fees, which helps you keep more money to invest back into your business. This makes everyone happy, so make sure of the processing fees before you sign on with a tech support merchant account provider.
Perhaps the biggest issue comes from the acceptance of foreign funds. This happens often with tech support companies, and some merchant accounts can flag these charges as fraudulent – or put a hold on your account. Be sure that they understand the type of business that you operate, because you cannot risk having a hold on your account.
Finding a cooperative and educated tech support merchant account can be tough, but it is worth the search. Be sure to ask questions before you sign on the dotted line, because the wrong merchant account provider can cause you a lot of heartache for your company.