Keep Your Auto Warranty Merchant Account Simple

With the eMerchant Authority in action, you shouldn’t be worrying about high-risk payment processing anymore. The highly qualified experts are right there to help you get the best automotive warranty merchant services.

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Know All About Automotive Warranty Merchant Services

Categorized as a ‘high risk,’ it’s nearly hard to find a trustable payment processing partner to get an auto warranty merchant account. Fortunately, eMerchant Authority is a merchant services provider specializing in providing e-commerce solutions to high-risk segments in the market.

With our established connections with numerous financial accomplices, we ought to be in the league of specialists that can easily set up your auto warranty merchant account and permit organizations to receive their remittance in advance.

Essentially, comprehend that finding a relevant merchant account for an online auto business isn’t as simple as conversing with the local bank and their credit card processor. It’s solely because the automotive warranty merchant services are regarded as high risk, which implies that these merchant service providers, similar to the one offered by your regional banker, cannot guarantee your endeavor.

Therefore, you should open up a merchant account underwritten by a sponsor bank or already drafted in a house. It will make it easier for you to receive credit card payments. To serve this purpose, a high-risk merchant account provider such as the eMerchant Authority exists! We ensure that no problem withstands during payment processing for high-risk businesses and smooth transactions can occur.

Use our fast application to get a custom tailored merchant account that fits your needs.

The Risk Assessment Associated With Payment Processing

Once you set up your e-commerce platform, the second thing you need to do is select a reliable credit card processing company. Let’s say you chose PayPal as your genuine payment processor. Don’t be surprised if your choice doesn’t work out in your favor.

Wondering why so? Well, it’s really simple. All the payment aggregators (PayPal, Square, and Stripe) and institutions such as Wells Fargo or TransFirst (known to be low or no risk credit card processors) do not favor businesses.

These type of companies deal with specific retailers that unfortunately doesn’t include high-risk merchants. This is because they cannot provide underwriting or risk management processes, unlike high-risk credit card processors, as eMerchant Authority does. Altogether, these features can help reduce the likelihood of loss.

Nonetheless, here comes the crucial aspect of credit card processors and payment aggregators; they will not inform you when they are unable to approve your business. In certain circumstances, many of them will initially favor your small businesses and, once when your company begins dealing with payment processing, these processors will step out within a matter of days.

This happens because these low-risk processors and aggregators will subsidize you after they receive payments. And, usually, their procedures are uncomplicated and cheap. There are greater chances for extended automotive warranty businesses to fall into the trap by applying through a low-risk provider.

Auto Warranty Merchant Account FAQ’s

Should I Get An Auto Warranty Merchant Account?

Understand the fact that when you own a legal organization, it is not your business but the automotive warranty industry that is considered high-risk. It is so because the extended automotive warranty business has a higher risk of facing financial losses for your support bank and credit card processor.

In certain situations, when you decide to sell an auto warranty via a credit card, the client has an option to file a charge within a six weeks duration. Additionally, as a matter of fact, your extended auto warranty doesn’t cover everything. So, when a client learns about it after they have purchased, they will likely file a chargeback.

As an owner of the extended warranty company, it falls on you to respond to their chargeback appropriately in situations like these. If you cannot do so, i.e., if you do not have enough money in your bank account to compensate for those chargeback funds, the credit card processors and their sponsor bank should come to your rescue by making desired refunds.

Ultimately, when there are many chargebacks, it will impose a financial threat on your auto warranty company’s credit card processor. And that is why auto warranty businesses are considered to be high risk mainly.

Can eMerchant Authority Help Me With Automotive Warranty Merchant Services?

The prime difference between an auto warranty company that accepts credit card payments regularly and low-risk processors that are on the verge of losing their merchant account is how efficiently they can minimize and manage chargebacks.

Since the automotive warranty industry is mostly occupied with small companies, they do not look into this matter unless it gets out of hand, invalidating the credit card acceptance option.

While talking about auto warranty companies, be aware that these companies are the biggest high-risk businesses in terms of chargebacks because they are easily vulnerable to what’s commonly known as a friendly chargeback.

Do You Know What A Friendly Chargeback Is?

Commonly known as friendly fraud, it occurs when a customer is likely to dispute a charge instead of trying to obtain a refund from the merchant. Usually, customers misinterpret this concept as simply a different method of getting their cash back, similar to that of a regular return.

Customers ought to file a friendly chargeback about auto warranties because they are not satisfied with the service they are provided with or if any claims have to be covered that previously haven’t been.

This will substantially influence your automotive warranty merchant services because your business has a continuous risk of cascading friendly chargebacks.

Furthermore, due to the unknown occurrence of situations, your extended auto warranty business should be ready with a yearly plan according to the geographic territory. A cataclysmic event in that district can cause thousands of clients to file legitimate claims all at once at the same moment. This might cause many automotive warranty merchant service providers to freeze and will not respond to all other claims.

Eventually, it will create a cascading effect where millions of thousands of clients will come forward and register their chargebacks, leading the company to its downfall and credit card processor vulnerable to your losses.

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eMerchant Authority is the leader in merchant processing for businesses of all sizes. We cater from medium to large establishments that would like to include POS systems and cashless payment transactions for their client's convenience. We also support new businesses, start-ups, and even high-risk merchants, so they can provide their customers with a secure and seamless shopping experience. Because customer satisfaction is also what we aim for.

Our services come at competitive rates, and we offer flexible payment solutions that are easy on the budget. Because we understand how financially difficult it is to be a business owner.

No cost surcharge and low-cost processing options. Latest hardware including Clover systems at unbeatable prices. We offer the perfect solution to all your retail payment system needs. Here are the unmatched benefits that you will receive when you apply for a retail merchant account with eMerchant Authority:

Merchant Processing

Merchant Account Experts

20+ Proven Bank Relationships
Medium/High Risk Accounts
Fast Merchant Account Approval
E-Commerce & Retail Options
B2B Vendors Supported

Multiple Payment Processing

Multiple Payment Solutions

Multiple E-Commerce Gateways
Chargeback Prevention
ACH, E-Check, Credit Cards
B2B Level 2/3 Data Discounts
3D Secure Frictionless Checkout
Mobile Payments
EMV Readers

Merchant Processing Technology

Intuitive Technology & Support

Gateway Recurring Billing
E-Commerce Cart Plugins
International Merchant Accounts
Dedicated Account Managers