Auto Warranty Merchant Account
Auto warranty businesses have been around for years and have been categorized as high risk for that long as well. There are a couple main concerns that payment processors worry about when it comes to auto warranty companies. The main concern with this industry is the length of the warranties. These merchants offer warranties sometimes going as long as a few years into the future. This means that the auto warranty merchant now has to service this warranty for years into the future. If the warranty does not get serviced, the payment processor is on the hook to pay. For example; if the merchant processes an order for a three year warranty for $3,000 and the auto warranty company goes out of business after 2 years and the customer’s car requires repair two and half years after purchasing the warranty however six months after the auto warranty company goes out of business, the payment processor will be on the hook to pay back the $3,000 charge. Even though chargebacks usually are only able to be obtained within six months of the sale, some circumstances give the customer a longer window especially if the service they purchased was guaranteed for longer than six months, in this example, it was guaranteed for three years.
Auto warranty payment processors have to make sure that the business they are approving will be in business years down the road. This makes it even harder for payment processors to approve start up auto warranty manufacturers. Start up auto warranty businesses must provide financial statements that will show that the warranty business is able to survive for an extended period of time. Auto warranty payment processors may also request that the auto warranty merchants discontinue selling warranties over a certain length. For example, if the business has not proven itself as a long term venture, the bank may require the business not to sell auto warranties over two or three years. This will lower the risk of the auto warranty payment processor and get the merchant approved. The merchant then will be able to process payments and as their business grows, they will be able sell longer warranties.
Offshore Merchants has been providing auto warranty merchant accounts since 2007 and has many options available. Most auto warranty merchants will be able to receive quick approvals at very competitive rates. Auto warranty merchant accounts will bring a number of beneficial services to any merchants utilizing an account from Offshore Merchants. These merchants will receive a PCI compliant payment gateway that is SSL encrypted in order to protect all sensitive information being transferred from customer to auto warranty payment processor. Auto warranty merchants will have access to real-time online reporting and recurring billing in addition to free technical support. Webmasters will be relieved to know that the API integration is quick and easy. The merchants will be setup to accept payments in no time.
Contact one of our helpful account representatives to assist you in the setup of a high risk merchant account or offshore merchant account for a high risk merchant.
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