Every business must be able to access reliable and affordable payment processing. Credit cards and online payment gateways are ubiquitous in business these days. Customers expect any professional business to take a payment in the form that is most convenient to them. Tech support companies are no different. No tech support business—particularly one that is an Internet- or mobile-based—takes only cash or checks. If you operate a tech support business, this means that you need to avail yourself of merchant processing. This is even more the case if you have a "high-volume" business. Merchant account services can be expensive, and your business will certainly look to keep your costs as low as possible. Some business owners, such as like tech support businesses, have different financial processing needs. These needs require special attention or expertise from a merchant account service provider. It may result in higher fees for a vendor. Accessing these services can result in serious challenges for certain types of businesses. Tech support and high-volume merchants will both often fall into a "high-risk" category. This can make it difficult—if not impossible—for them to get affordable merchant processing services. There are usually programs that are specifically geared for both of these types of merchants. A regular merchant account service will likely not be able to meet your needs. This means you will have to look very closely to find an appropriate vendor that can handle your financial services.

Zenti has many options and programs that can help your high-volume tech support business process credit cards. Tech Support, Tech Scams, and High-Volume Accounts An unfortunate reality of the tech support world is that too many banks and merchant processors believe that tech support means tech scams. This is certainly not the case for the vast majority of businesses. Unfortunately, there is a proliferation of tech support scams. These scams create significant negative impressions and help to push legitimate tech support into high-risk categories. As a tech support business that is seeking to provide perfectly legitimate businesses services, you may be forced to provide additional proof of the reputable nature of your business. This may result in added costs and administrative burdens for your operation. Furthermore, tech support businesses are often high-volume accounts. A high-volume merchant account is a merchant account that has a higher-than-normal number of transactions. There is no set definition for what will push a vendor into the high-volume territory. Each vendor typically has its own definition. Definitions may also change. Factors that will alter these definitions include industry, risk category, and agreements with vendors. Why Does High-Volume Mean High-Risk? High risk is generally defined as a business that has a higher-than-average number of chargebacks or transactions in general. A chargeback is one of the worst things that can happen to a business that processors credit cards. It can result in a business being a higher risk for a merchant account vendor. A business becomes a high risk when a customer seeks a "return" on a charge. This means that a customer disputes that they made a purchase. It may also happen when fraud is involved. Numerous fraudulent transactions may indicate that a company has inadequate security measures. It may also mean that your industry is particularly susceptible to fraud. A vendor is more likely to earn a high-risk classification if that vendor has a high chargeback ratio. This will dramatically increase the overall cost of credit card processing. There are some instances that make fraud more likely. Having high volume is one such example. More charges simply mean more opportunities for fraud. A merchant account service will place a volume cap on a vendor in order to protect its business against fraud. If a business is a high volume of transactions, it may regularly exceed this cap. Keep in mind that this cap can be for the number of transactions or total transaction level. Why Else Are Tech Support Businesses Considered High-Risk? Some businesses are more likely to earn a high-risk merchant accounts classification. In many cases, this includes tech support businesses. This is the case for many reasons, such as:

• Card-not-present transactions: This is a transaction that occurs when a credit card isn’t physically present. These are commonplace in the tech support business. This is because many of the transactions occur over the phone or Internet. This increases the risk of fraud.
• Extended warranties: Many tech support businesses sell extended warranties. Extended warranty packages often lead to an increase in fraud.
• Offshore businesses: Offshore businesses may not have the same consumer protections as those within the United States. This means that a business is more likely to engage in fraudulent practices.
• Foreign currency: Many uses of a foreign currency or offshore accounts are perfectly legitimate, but many scammers use foreign currency or offshore accounts to cover their tracks.
• Subscription models: Subscription models tend to result in a high number of chargebacks. This is because people will often sign up for subscriptions and request a refund after they get charged. They may also set a subscription for a credit card that expires.
• Scammers: There are many scammers within the tech support industry. This means that there are people who pretend to be tech support. They then fraudulently charge a person or business for services they never provide. Tech support services are also often a ruse for ransomware services. This has a negative impact on the tech support industry as a whole. This reputational damage often results in a high-risk classification for the tech support industry.

High-risk vendors are still able to access merchant account solutions. The issue is that these solutions must be specifically tailored to high-risk businesses. Fortunately, Zenti offers these solutions to businesses that need them. What Does A High-Risk Classification Mean? Being classified as a high-risk business can have a negative impact on your bottom line. It can lead to many other challenging financial consequences for your business. High-risk businesses may have to face some or all of the following consequences:

• Higher payment processing fees. Most businesses will face a small per-transaction flat-fee with their credit card processing. They are also likely to incur a percentage fee for each transaction. This fee is normally low, usually around 0.3% per charge. For high-risk accounts, the fee could run as high as 1.5%.
• Higher chargeback fees. One of the main reasons that chargebacks are so expensive for vendors is because the payment processor will levy a fee against the vendor. For high-risk merchants, these fees may be higher than normal.
• Higher reserve requirements. Payment processors will often hold onto a certain amount of payments received. A process will do this to hedge against refunds, chargebacks, or other costs. Being classified as high-risk means that a merchant account processor considers a business to be less reliable. In order to protect against these issues, a vendor will hand it onto a higher reserve.
• Longer application processes. Companies that are high risk and apply for merchant account services can expect to incur a longer application process. They may have to turn over additional documents. This includes including bank statements, credit history, processing history, and more. This process is more labor-intensive and time-consuming.

Merchant account vendors are far more likely to classify some businesses as high risk. These include CBD and vape businesses, cigarettes, adult services, and more. Businesses that are often considered to be scams are also very likely to earn a high-risk classification. This isn’t an all-inclusive list, but it is some one of the biggest problems that a high-risk business can face. This is why high-risk, high-volume businesses should do everything they can in order to limit their risk. What Can I Do To Minimize Your Risk? There are many things that your tech support business can do in order to minimize its risk and avoid a high-risk label. All of these items won't guarantee that a business becomes classified as low-risk. It can certainly increase the chances of this happening.

• Work with your vendor: Merchant account services are usually willing to engage in a conversation about ways to reduce risk. They can often share insights and methods that can be acted upon to reduce risk.
• Purchase protective services: Some vendors will offer a variety of services, such as chargeback or fraud protection. By purchasing these services, you may reduce your risk and avoid a high-risk classification.
• Increase transparency with customers: When customers are confused about the nature of charges, they are more likely to seek a refund. This may occur when a business is unclear about the nature of the purchases they are making. By being clear with customers about what they are being charged for—and when they are being charged—businesses can reduce chargebacks. They can also enhance their own reputations with customers. This will ultimately improve their bottom lines.

What Should My Tech Support Business Look For in a Merchant Account Provider?

There are many things you should look for if you’re interested in taking advantage of a high-risk merchant account provider.

High-Risk Payment Gateway & eCommerce Solutions

Most important is a high-risk payment gateway. This means connecting with a program that can approve or deny a credit card transaction. It also means finding a gateway that can quickly and safely move money from a credit card into your account. As a high-risk vendor, you may have some unique challenges. These include high volume of transactions and chargebacks. This means that you need a vendor that has ample experience in this area. This vendor must be capable of keeping chargebacks and fees to a minimum.

In some cases, credit card processing is not enough. You will also need merchant services that allow for debit card processing. This can further expand and diversify your overall financial options.

Your payment provider must have eCommerce solutions. This means that it must run credit card payments over the Internet or over the phone. These payments must be done in a secure and easy manner. They must also smoothly integrate with your website and already existing accounting software. In some cases, your business may need a custom software solution. This means that you may need a company with expert programming capability. They should be able to create a new program upon request. This program must be able to smoothly be used on your website. As a high-volume tech support business, you’ll need a solution that allows you to operate with a very high-volume cap, or no cap at all. In your line of work, reaching a maximum of transactions for a month simply isn't an option. You must make sure that you speak with any potential merchant account provider about their account limits. You should also find out if these limits are negotiable. It is also important that you find out what fees you are likely to be charged.,Depending on your specific customer base or line of work, your business may also need additional offerings. Cryptocurrency is a great example. An increasing number of businesses are removing to accept crypto payments. This means that your business needs an entire new gateway and processing method. Cryptocurrency also requires real expertise and experience. Another consideration is the processing of checks or echecks. These payment solutions are not often used. It is still worth examining whether or not the service provider you are considering using has these offerings. If they do, what is the pricing? Will they charge you extra for these services, or do they come as part of a total package?

Transparency & Customer Service

Transparency is key with any credit card processor. This transparency goes two ways. You should know exactly how much you’ll get charged. You should also understand what other fees you risk incurring, as well as when you’ll incur those fees.Your merchant should also help ensure that you’re properly communicating your charges to your customers. This means that they need to be equipped to help you ensure transparency among your customer base. There are basics they should manage, such as ensuring an accurate description on a credit card statement. They should also be able to give you advice on how to ensure your customers fully understand their charges and fees. This is particularly important for tech support services. Customers frequently don't understand what services they are paying for or when they will pay them. This can lead to bad feelings, accusations of malfeasance, and chargebacks. There is a slew of online payment merchants that are commonly used for payments. This includes vendors like PayPal, Stripe, and Venmo. Any merchant account provider should provide you with access to these vendors. They should also be able to do so at competitive rates. Working with a merchant account provider here is absolutely critical. Many of these firms simply refuse to do business with a high-risk vendor. You should also inquire about customer support options and availability. Does the merchant account service you are looking at hiring provide you with 24/7/365 customer support? If you have a technological emergency or a data breach, what is their response? Do they have plans in place to assist with this situation? Some tech support organizations may find it easier to deal directly with ACH payments, and these payments make life much easier for many businesses. This is particularly the case for those that deal directly with another business. These types of payments are usually not necessary for tech support that deals directly with customers. ACH payments require a variety of set-up, but it comes with extensive benefits. A merchant account provider can batch payments, thus reducing fees. A business can work directly with a bank, as opposed to a credit card business. This can make dealing with transactions significantly easier. ACH payments are also typically high-security ones. This ensures the protection of your financial information, and the information of your customers. You’ll also want to ensure that you use a merchant account provider who can integrate with your already existing services. This integration must happen with both your financial tools and website. It should minimize work and ensure that your accounting is as easy to track as possible. If you’re located in the United States, you’ll also want to ensure that your merchant account provider can separate your sales tax payments. Zenti is proud of the variety of services it can offer your business. We've worked with a slew of high-risk businesses in the past. As such, we have years of experience in helping these businesses gain access to critical merchant account services. If you’re interested in learning more about our services, reach out today. We're here to help your business succeed.