Appliance Warranties Merchant Account

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.

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Things to know

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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
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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
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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?

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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
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Know how you want to accept payments before your application, with call centres 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:

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Your options are a little bleak! – unfortunately there are not many merchant banks willing to open an account for Warranty companies, We CAN HELP – but just be braced for some higher than usual rates and a solution that is not as stable as a high street acquirer.

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It will take time to get your merchant account approved, please allow 3/6 weeks for your be able to accept card payments.

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There will be a high risk registration fee with Visa and Mastercard, there will also be a set up fee charged by MWBS – we will outlay this before we start.

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You will need a Business Bank Account – if you have not got one in place we can help you get one by clicking here!

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The KYC and KYB that you will need is listed below, please ensure that you have all of this in place before putting forward an application.

  • Proof Of ID for all directors or shareholders of 25% or more
  • Proof of Business address
  • Proof of directors home address
  • Proof of business bank
  • All T&C and Policies in place
  • Website logins and a finished website.
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Remember – we can only approve your appliance or warranty business with a merchant account if you are registered in the EU. Also all directors must be registered as residing in the EU.

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You will have a better chance of gaining a merchant account for your appliance or warrantee business if you have transactional history with your business.

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If you are a start-up appliance or appliance business looking for payment solutions then you will need the following documents in place.

  • Business plan
  • Cash flow forecast
  • Proof of funds
  • All other KYC and KYB business documents
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You will have conditions placed on your merchant account, these are some examples.

  • Rolling Reserve
  • Delayed Settlement
  • Weekly payout
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FX charges may apply if you use an acquirer that does not usually settle in GBP.

Get started

Modern World Business Solutions are high risk merchant account experts and are best placed in the market to get you all set up and taking payments for your Appliance Warranty business as quickly as possible. We will work with you to ensure that we get you a solution to take payments over the phone.

To start the ball rolling to obtain your merchant account please fill out the below contact form.

Get started

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