Setting your network tech support business up to accept payments from your clients is a hugely important part of company operations. And being a cash or check-only business is simply no longer an option.
In fact, a majority of transactions are being completed with debit or credit cards. When providing your tech support services, it’s important to offer your customers a range of options for paying, which can make the difference in whether they work with you or not.
If you’ve encountered issues with being approved by traditional banks due to being categorized as a high risk, you still have options.
Why Network Tech Support Businesses Are High Risk
When traditional banks or aggregators agree to provide services for businesses, they look for industries that have the lowest financial risk for them. Industries with higher risk involve more security and fees to help offset the bank’s risk.
A business is considered high risk for a variety of reasons. For tech support specifically, your business is considered high risk because transactions are frequently processed in a “card not present” scenario.
As the name implies, this is when cards are processed online, where the business can’t account for the presence of the card. This is important because fraudulent charges are more likely to be made when scammers have access to the card information but not the card itself.
All online retailers are also susceptible to high chargeback rates, which banks find undesirable.
If you applied for a traditional bank or aggregator service and were approved, you might be surprised to find out in the next few days to months that your account has been canceled due to you being categorized as a high risk.
If you’ve been denied or are already aware that your business is categorized as high risk, it’s time to look for merchant accounts that specialize in high risk industries.
Understanding Your Tech Support Merchant Account
If you’re offering tech support, including services such as network setup, Mac or PC diagnostics and security services, cloud services, and malware cleanup, you understand the importance of keeping up with technology.
The same can be said of your tech support merchant account. Merchant accounts that specialize in high risk industries often provide several layers of more advanced security than typical banks. Not only does this protect the payment processor, but also protects your business and assets from having to pay back fraudulent charges.
In addition to increased security, your merchant account should also provide check processing, ACH processing, point-of-sale solutions, and a secure payment gateway.
A payment gateway seamlessly integrates with your shopping cart and allows you to verify payments and approve the transfer of funds from your customers’ accounts into yours.
It’s also important to understand the increased fees and costs that come with having a high risk merchant account.
If you’ve been denied a merchant account through a bank or aggregator, there are still options available in order for your business to operate to its full potential.
While you will have to pay additional fees, have minimum balances, and may be subject to rolling reserves, companies that specialize in high risk accounts can offer a variety of enticing services to help your business function.
It’s important to research all of your options to collect enough information to allow for negotiations in choosing the company that’s right for you.