The extended warranty industry struggles to secure the payment processing solutions they need. The majority of US banks shy away from these businesses, due to the contingency associated with sales that are pre-paid more than six months in advance. In fact, the extended warranty industry as a whole is categorized as being “high risk”. It is not just domestic merchant accounts that these businesses fail to qualify for; international high risk merchant accounts will not underwrite extended warranty businesses either.
Extended warranties have become standard for electronics, automobiles and a variety of other consumer goods. The inability to secure a merchant account threatens to halt all business plans for startups before they ever get their feet off of the ground. In order to accept debit and credit cards, a business must set up a merchant account.
According to CyoGate Merchant Solutions, “Many merchant account providers do not understand the issues surrounding the extended warranties industry and will provide a merchant account that will eventually be terminated, which is not only highly disruptive to any business, but it also makes it more difficult to qualify for a merchant account in the future, since the termination would have to be disclosed on future merchant applications.”
Fortunately, there are high risk providers that are more than willing to provide services to industries categorized as being “high risk”. Years of experience have helped these providers build proven platforms, services and programs to help “high risk” merchants. EMB, for example, knows the challenges that the extended warranty industry struggles with – high tickets and irregular expenses – and are ready to offer their services.
EMerchantBroker is happy to work with extended warranty companies. Their services include new technology and cutting edge tools like Chargeback Shield and Fraud Preventions. Extended warranty companies can secure the payment processing solutions they need for their everyday operations.
The application process with EMB is fast, simple and hassle free. In applying for an extended warranty merchant account, businesses can manage both volume and transaction costs. Upon submitting an application, a merchant will hear back in as little as 24-48 hours – if not sooner – and an account can be setup in a just 3 days. There are no application fees, and no VISA/MasterCard registration is required. Merchants will find competitive rates and multiple secure payment gateways. To learn more about an extended warranty merchant account, contact the team of specialists at EMB today.