Posted: by Bronte
Payment Processing for Your Tech Support Programming Business
Finding a tech support programming payment processor isn’t as easy as you might think. The IT and tech support industry is rife with fraud making the process for obtaining a merchant account harder. Both new startups and existing tech support businesses need the ability to accept credit card payments online. A high-risk payment gateway for tech support is needed to do this. By accommodating multiple payment options for your customers, your tech support programming business will be able to excel.
An Overview of the Tech Support Programming Industry
Tech support programming is a large and rapidly growing industry. With the United States holding the majority share in the world’s tech market. Employment in this field is expected to grow by up to 13% by 2026. The world relies on computer and information technology systems to function. By entering this field, you’re providing a necessary service to the digital world.
Tech support companies are either business-to-business (B2B) or business-to-consumer (B2C). As a tech support programming company, you’ll most likely be working on a B2B basis. Sample projects might include developing and maintaining database software, troubleshooting problems in existing code, or writing new code to update older applications.
Tech support programmers can work as systems analysts, software developers, or database administrators. This competitive field requires a thorough education in computer sciences and a strong understanding of the specific services that you intended to provide.
What It Takes to Start an IT Company
As a business-to-business service provider, you’ll need to clearly define your company’s service offerings. Decide if you intend to work with a specific piece of commonly-used software, or develop a niche program that your company can sell and maintain.
Many tech support companies work as online consultants, but you can also choose to perform on-site tech support. Understand the level of data security that your company can provide; you should also know how long it will take you to complete the average project.
Make sure that your company has the correct license and permits before you take your first contract. You may also want to get an A+ certification to increase the confidence clients have in your business.
Your first few contracts might be conducted on a freelance basis. Although you can accept some payments by cash or check, you will need to secure a merchant account to start accepting credit cards. Finding a tech support programming credit card processor can be surprisingly difficult; many banks and standard payment providers are not willing to work with high-risk companies.
Why Is It Hard to Find a Tech Support Payment Processor?
Banks tend to offer merchant accounts to companies that are considered to be low risk. Although tech support is a fast-growing modern industry, there are several reasons why it is thought to be a high-risk field.
- High incidence of fraud. Online tech support companies are often the source of scams, malware programs, or bad business practices. Banks may be unwilling to provide a tech support programming merchant account until they are certain of your business’s legitimacy. You can mitigate this risk by keeping proper documentation and maintaining healthy business practices from the ground up.
- Increased chargeback ratio. A company’s chargeback ratio refers to the number of returns, refunds, and misprocessed payments attached to the account. Online businesses often have a high chargeback ratio. Because tech support programming is a service-based industry, there is a higher chance of dissatisfied customers or misunderstood contracts. Banks take this into consideration before agreeing to process a company’s credit card transactions.
- Inconsistent earnings. During the first few years of business, many tech support companies have a wildly fluctuating customer base. Tickets will vary greatly in size, and a steady income takes a long time to develop. Many banks are unwilling to offer a merchant account without several months of consistent and trackable income. The problem is that without credit card processing, you can’t sell the services needed to develop this income record.
- Poorly defined client base. Tech support programming is a broad term that can apply to several different industries. Many startups make the mistake of catering to every potential customer; in the process, they lose sight of their vision and their main source of profit. Focus your company’s energy in a single direction. You will create a stronger business and receive better consideration for licenses, accounts, and loans.
All of these factors can lead to a bank declining your application for a merchant account. Card processing is essential for any modern business, so look for a tech support programming credit card processor that is willing to work with your company.
Steps to Securing a High-Risk Merchant Account
You may have just started your business, have bad credit, or have recently been turned down by your existing payment provider. Even so, you can still get a merchant account for your tech support programming business. Take steps to increase the strength of your application, and find a provider that specializes in working with your industry.
- Define your niche. You can’t build a strong business without a strong directive. Understand the kind of tech support programming services that you want to provide, and become an expert at your specialty. Merchant account providers are looking for stable companies with a reliable customer base.
- Learn to mitigate your risks. Tech support programming is a high-risk field, but you can earn a low-risk status for your company. Mitigate your risks with clear information, good customer service, and standardized business practices. A continuously low chargeback ratio will improve your application process and decrease the fees on your merchant account.
- Collect your documents. You’ll need proof of income before you can apply for a merchant account. Collect three months of bank statements, a voided check, and at least two forms of personal identification. This will make it easy to fill out your application in a timely manner.
Find a quality tech support programming payment processor. Banks are often unwilling to process credit cards for tech support programming companies. Instead, work with a payment provider that specializes in high-risk merchant accounts. Look for a trustworthy company with low rates, good customer service, and a great business reputation. The quality of your payment provider will impact your future customer interactions and scalability in the years to come. Allow your payment processor to work on your behalf to find your perfect acquiring bank and seek lower rates as you grow. By doing this, you will be able to get back to doing what you do best: running your business.