HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA – OVERVIEW OF THE USA TECH SUPPORT INDUSTRY
The United States is a big market for Tech support services. The compound annual growth rate (CAGR) of Tech support businesses offering IT Support services to small and medium business has been 14.4% between the year 2012 and 2016. Tech support companies offer multiple services to small and medium businesses across the United States ranging from helping them to set up their IT Networks, Optimizing security, Implementing cloud-based solutions, Optimizing Computers and providing enterprise-level support for day-to-day challenges.
The Total Available Market(TAM) for these Tech support companies is as big as 6 million USD Per Year. A large part of this amount is transacted online through various payment methods like Credit/Debit and Echeck for remote tech support industry. Most of these businesses seeking IT Support are small having an employee base of less than 25. The small enterprises do need proactive PC and Tech support from skilled IT Support companies. Small enterprises in the United States focus on generating sales and focus on implementing marketing strategies for the business. They try to focus on the core competencies of every progressive company should do. They take the PC support services from other companies as these outsourced partners or vendors are more skilled in information technology. The company which handles the PC support services sign non-disclosure agreement and service level agreements to keep up a high service delivery standards.
HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA – INSIGHT
Tech support companies based in the United States work hard to offer best-in-class services to home users so, in other words, they handle the B2B and B2C Clients. This strategy helps the Tech support companies target a bigger market than the above mentioned 6 Million. For the exceptional services they provide, they should also have the best payment gateway for tech support. The Tech support companies accept payments by using different modes of payments available in The United States.
- Credit card Payment Processing solution for Tech support company
- Cheque/E-check Payment Gateway or Merchant Accounts for Tech support companies
- Direct deposit
- Prepaid Cards/Vouchers
Most of the companies providing services to consumers and business across the United States offer great service delivery and do not involve themselves in any malpractices, But like every other industry, this industry also has some service providers that carry out incorrect business practices to generate sales. Incorrect business practices increase the number of refunds or charge-backs. Non-professional companies use incorrect business practices like spreading Popups, Phishing attack, sending unsolicited emails and outbound calls to generate sales.
This is the main reason Tech Support Merchants are High Risk in nature.
MOST OF THE BANKS/PSP ARE AGAINST OFFERING ANY MERCHANT ACCOUNT SOLUTION TO TECH SUPPORT COMPANIES. THIS IS BECAUSE OF THREE REASONS.
- They have a massive number of merchants from low and mid risk industries. These Merchants help the Bank/PSP to make enough revenue or commissions. They have already burnt their hands. They have on-boarded IT/Tech support Merchants in the past and the result was in a form of massive loss or penalty
- The Bank/PSP has burnt their hands in the past. They have on-boarded IT/Tech support Merchants in the past and the result was in a form of massive loss or penalty.
- They don’t want to associate themselves with any high-risk industry because they want to keep their brand clean. (Many Banks/PSPs will not underwrite an adult merchant account just for the same reason as they don’t want their name to be associated with the Porn Industry)
Best Payment Gateway or Merchant Accounts for Tech Support companies in the US are from Offshore locations. These are Small Banks/PSP operating in different countries, mainly in Europe and Asia. They are taking the risk of on-boarding Tech support Merchants.
WHERE CAN I APPLY TO GET A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA?
To apply for a High-Risk Merchant Account for your tech support business in the United States all you have to do is fill the Merchant application form or the contact form on our website, and we will try to find the best Credit Card Processing solution for you. We have developed global connectivity with multiple payment processing companies that on board high-risk merchants, and we will be happy to work for you to get a positive result. This connectivity helps us in offering the best rate of the transaction to tech support merchants in the United States.
HOW CAN I PREVENT CHARGEBACKS WHEN I GET A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA?
The merchant should always concentrate on making sure that he is implementing all the best practices. Customer satisfaction is the key reason for reducing the number of returns and chargebacks. Big companies add interactive elements like newsletter and surveys to keep the relation alive even after the end of the service or warranty time-frame. The Merchant should always make sure that there is no data leakage in the organization. Most of the companies to sign a non-disclosure agreement with all the employees and the contractor. This non-disclosure agreement and other service level agreements help to keep the critical customer information within the organization. There is nothing as bad as any of your competitor getting the information related to your customers. They can offer a better deal and the customer may call you for a refund.
Ticket size is vital in the Tech Support industry, especially when you are offering support to home users. Don’t overcharge the customer. We have seen that the tech support merchants ask for higher ticket size. Why would a customer pay $1500 if the cost of the computer is just $200? Keep honest pricing it helps in long run. Big companies in this industry offer a small startup cost and put a small monthly recurring charge. This helps the merchant to get a big amount from the customer in long run and helps the customer as he is not overburdened with a big price to start.
WHAT IS A FRIENDLY CHARGEBACK IN THE TECH SUPPORT INDUSTRY?
We tend to forget things and so does the buyer or the customer. Sometimes people get shocked when they realize a charge on their credit card statement and don’t recognize the descriptors. This is a friendly chargeback. When a buyer initiates a dispute just because he is not aware of the billing descriptor. Merchants must include all Descriptor on the contact page and send the descriptor information to the customer over the email.
HOW LONG WILL A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT COMPANY IN THE USA LAST?
This is the most common question which we experience almost every day. Merchants are always concerned about the tenure or the lifespan of the Payment gateway/Merchant Account. No Bank or financial institution would be interested in shutting down merchant accounts that are not adding risk to the entire ecosystem. To ensure a longer time span of the account one should carry out the best practices.
- The average ticket size should always be kept in the limit.
- The minimum ticket size and the Maximum ticket size mentioned at the time of application should also be maintained throughout the life of the merchant account.
- Ensure that the average weekly and the monthly sales volume is in proportion as per the sales projection on the application.
- The Merchant should ensure that the refund and the charge-back rate altogether are not beyond 3%.
- The merchant should also utilize regular communication methods with the customer to ensure that they are no friendly charge-backs.
- Merchants should use premium chargeback alerts solution.
HOW IS A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA DIFFERENT FROM LOW AND MID RISK MERCHANTS?
The Low-Risk Merchant accounts are offered to general industries like someone sells toys or garments on the Internet. The industries in which a proper proof of product delivery can be obtained in terms of airway bill or Postal service receipt are considered to be a low-risk industry.
Some industries which sell products like electronic cigarettes, CBD oil, Vaporizers, Tobacco, Medicines and Replica products are also considered high risk(because of legal issues).
WHY SHOULD I GET A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA?
You should get a High-Risk Merchant Account for tech support in the United States primarily because this is your industry. Your company may be putting all the best practices but just because of some players in the market you also have to pay the price of being considered a high-risk Merchant. You should never misrepresent the business model of your company. We have seen many merchants representing themselves as web design SEO companies but in
You should never misrepresent the business model of your company. We have seen many merchants representing themselves as Web design or SEO companies but in reality, they do offer tech support services. This is one of the biggest mistake done by business owners. The day your payment processor will find out about your real business model the very same day your account can be terminated and all the funds can be frozen or return to the customer. You also risk yourself of being reported to the match database or a TMF. Merchants on the Match database or Match list cannot apply for merchant accounts globally for a fixed period.
WHAT ARE THE RATES FOR A HIGH RISK MERCHANT ACCOUNT FOR TECH SUPPORT IN THE USA?
The rates available for merchants offering PC support services or technical support services in the United States of America ranges from 4.5% and goes as high as 25%. Merchants with a clean business registered in the United States and with a good Processing history get the possibility being offered better rates.
The processors want to protect them self from future charge-backs. In some industries, it is done by putting a fixed reserve. A fixed amount is always blocked by the credit card processing company or the payment gateway. For an industry like PC tech support or Remote tech support, the rolling reserve is the second option that is used mostly. This reserve ranges from 5% can go as high as 20%.
For an industry like PC tech support or Remote tech support, the rolling reserve is the second option that is used. This reserve ranges from 5% can go as high as 20%.
Offshore merchant account providers offering services to merchants from the United States offer rates ranging from 9% to 15% with the Rolling Reserve of 10%. Merchants should be aware that the processors also keep arrears on the system this is typically between 1 week to 3 weeks.
Note:- The Rate and the Terms depend a lot on the risk profile of the applying merchant.
Note:- The Date and the Numerical Facts are for information purpose only should not be considered accurate.