Appliance Warranties businesses have had a resurgence over the past few years, and we have seen a large increase of businesses in this sector needing to set up a merchant account to take payments via card from their customers often over the phone via a virtual terminal.
Whilst there are some fantastic companies covering the UK offering appliance Warranties there is unfortunately the odd bad egg that has tarnished this particular business model with acquiring banks.
The nature of the acquisition of a customer with appliance Warranty businesses is often done through a call centre and over a cold call. This process drives a very high level of attrition which leads to chargebacks, this is what acquirers deem to be a very high risk business to be involved with as they work hard to keep their chargeback levels to a minimum.
It is possible to get your appliance or warrantee business approved for a merchant account, however it will likely have a set of conditions attached to it that are in favour of the acquiring bank and in place to protect the customer against the mids selling of a product or service.
To get a merchant services account open for a warranty company of any description takes a lot of patience, Some of the things you need to know are listed below.
THINGS TO KNOW
Acquirers do not like too long plans, for example if you are selling a yearly plan, this is too much of a risk for them, a monthly plan is much more attractive to an acquirer as the liability and exposure is shortened both in time and in amount
Acquirers like to have chargeback monitoring software in place so that you can manage your customers proactively before it gets to a chargeback stage. This is seen as taking your responsibility seriously as a merchant
Good Appliance Warranty companies are ethical and have a very tight set of terms and conditions that allow a cooling off period for the merchant to change their mind - does yours have this?
PAY BY LINK - this is a good way to collect payments for this sector as there are various levels of verification set before a payment is made, this protects the acquirer and gives them confidence that merchants know what they are signing up to
Know how you want to accept payments before your application, with call center's there are several ways to capture payments, because CNP charges will usually add up if the correct solution is not in place
Things you will need before you can put forward an application for your Warranty business:
Talk To Our Expert Today
We have helped hundreds of businesses throughout the UK save money on their rates. Book a review today!
Email us
naveed@epaymentsolutions.co.uk
Call us
+44 7469 753122