Extended Warranty Merchant Accounts Offer Payment Processing Solutions

Jan 29, 2016

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.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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