Many Banks Have Stopped Providing Merchant Accounts to the Extended Warranties Industry But We Have Domestic Solutions!
Due to the contingency associated with sales that are pre-paid more than six months in advance in the Extended Warranty business, many US banks consider it a high risk industry and have stopped providing merchant accounts to businesses that provide extended warranties.
In fact, even many of the International high risk merchant accounts will not underwrite extended warranty businesses.
Many merchant account providers do not understand the issues surrounding the extended warranties industry and will provide a merchant account that will eventually be terminated, which is not only highly disruptive to any business, but it also makes it more difficult to qualify for a merchant account in the future, since the termination would have to be disclosed on future merchant applications.
CyoGate does offer credit card processing solutions specifically for merchants in the online, mail, and phone order extended warranties industry and we do have both domestic US and international solutions available. There are slightly higher credit card processing fees and a reserve fund is commonly, although not always, required for extended warranty merchant accounts due to the high risk of chargebacks associated with the industry. However, you can rest assured that you will not have your merchant account terminated simply for being in the Extended Warranties business.
For more information on our Extended Warranty merchant accounts, please contact us today, or apply for a merchant account using the button below.
An Internet Merchant Account is sometimes referred to as a "MOTO" (Mail Order & Telephone Order) Account because they all require the ability to process a credit card payment when there is no physical credit card present to be swiped. A standard retail "swipe" merchant account does not allow processing of these "card-not-present" transactions.
If the domestic banks are denying your merchant application because they believe your industry is considered high risk, CyoGate can help! We have an offshore network of merchant processing partners that enable us to provide low cost, high risk merchant solutions to a much wider range of businesses and industries.
The CyoGate Internet Payment Gateway offers one of the quickest and most cost effective ways to accept and process credit card and electronic check payments online. Our payment gateway works with most existing merchant accounts and supports hundreds of popular web shopping carts and eCommerce platforms.