Though the technical industry may be one of the fastest growing industries, banks aren’t eager to approve merchant accounts for businesses in this sector, which would allow them to process payments, including credit card purchases.
Truth be told, banks hear the words “tech support” and they start thinking “tech support scams.” Over the years, scammers cloaked under the guise of tech support have conned people out of their personal information and their money. Common cons include scammers sending pop-up messages that warn users about computer problems. The “techs” that call to help users claim they have detected viruses or malware on a person’s personal computer. Then, the user is to pay a large fee or enroll in a subscription plan to diagnose a non-existent problem and protect it from other problems in the future. Scammers do this over and over, stealing many people’s personal information and money.
Due to the rampant fraud and the high chargeback associated with these businesses, banks don’t want to shoulder the potential loss. Therefore, legitimate tech support businesses that want to accept credit card transactions need to turn to high-risk merchant account provider such as SecureGlobalPay. You can apply today for a tech support merchant account by using SecureGlobalPay’s quick, online application.
Merchant accounts for all types of tech support businesses
SGP offers merchant accounts to many types of businesses in the technical support industry, including those that offer remote services. Other tech businesses accepted offer the following services:
- Mac or PC security services
- Hardware and router configuration
- Browser and email support
- PC optimization
Additionally, the experts at SecureGlobalPay work with new and existing businesses of all sizes, merchants rejected or terminated by another credit processor, as well as those with bad credit or high chargebacks.
What’s required when applying for a tech support merchant account
An online or retail business can start applying for a tech support merchant account today. To begin, merchants should fill out online application. To keep the process moving along, businesses should have the below items on hand to make available to processors and underwriters:
- A valid, government-issued ID, such as a driver’s license
- A bank letter or a pre-printed voided check
- 3 months of the most recent bank statements
- 3 months of the most recent processing statements, if applicable
- A SSN (Social Security Number) or EIN (Employer Identification Number)
- Chargeback ratios must be under 2%
Additionally, every online merchant must have a secure, well-established, functioning website.
What to expect during a tech support merchant account application review
When tech support businesses apply for merchant accounts, processors and underwriters want to see that they are running legitimate, reputable businesses. During their review, they assess risk by looking for any red flags that indicate that a merchant is not running legally.
To get a total view of business’ risk, underwriters look at a merchant’s credit scores, credit card processing history, bank statements, and its website. If a site doesn’t have solid privacy and refund policies posted, they will count as negative strikes against the merchant. A negative bank account balance, unpaid bills and late payments, and a history of high chargeback rates also increase the risk to a processor.
To prepare for the application review, merchants should take care of outstanding bills and debts, have a substantial sum of money in the bank, and have a principal in the business with the best credit history apply for the account. Basically, anything that may be viewed as suspicious should be handled before it goes before an underwriter. The goal is to show processors and underwriters that they are not taking any undue risk when they approve a tech support merchant account. Merchants that take these steps are likely to get approved for an account with fewer restrictions, such as caps on higher processing volume or a lowering rolling reserve.
Categories for Tech Support Merchant Accounts
The United States and other countries, including the United Kingdom, assign four-digit numerical codes, known as Standard Industrial Classification (SIC) codes, to business establishments. These codes aim to identify the primary purpose of businesses.
Businesses that sell products and services related to the tech support industry fall into one of these codes:
- 7379: Computer Related Services, Not Elsewhere Categorized
- 8748: Business Consulting Services
- 7389: Business Services, Not Elsewhere Categorized
Visit the United States Department of Labor to view a complete SIC list.
The six-digit codes, known as NAICS, are used by federal statistical agencies to classify establishment. The codes are used to collect, analyze, and publish statistical information about similar types of businesses and the way they impact the U.S. economy.
Most remote technical support businesses use these two NAICS codes:
- 541519: Other Computer Related Services
- 541618: Other Management Consulting Services
Visit the United States Census Bureau’s Northern American Classification System to view the complete NAICS code list.