Auto Warranty Merchant Accounts

What is Auto Warranty Merchant Account?


Auto Warranty Merchant Accounts are for auto warranty businesses. With years of experience, our experts are standing by to assist you with your payment processing. Regardless of your situation, we have a solution for you. Our highly trained employees offer excellent customer service and skills to our valued customers. Please don't hesitate to give us a call, our dedicated staff is waiting to help you. We can take the complication out of your Auto Warranty Merchant Account and make it far easier to understand as well as to get paid.

We offer High-Risk Merchant Accounts and merchant credit card services for all related warranty products. We help you to design the ideal payment processing plan for your specific needs. Our main goal is to surpass the expectations and help you to device a practical solution based on your particular situation.

Extended Warranty Industry Categories

Historically, an extended warranty has been considered to be a high-risk due to the loss exposure. Extended warranties complete the credit card processing procedures. Here are some of the most common choices when it comes to extended warranty companies:

6351: Surety Insurance Establishments (engaged primarily in the underwriting of the financial responsibility insurances).
6399: Other Insurance Carriers (those not covered elsewhere that are frequently used by the extended warranty merchants across the industry).
7389: Business Services, those not classified as a catch-all used for business services that won't fit into other SIC categories.

The use of the extended warranty codes for SIC are fairly consistent, however, the exception is that some of the warranties have specific SIC codes that match up to specific services of the industry.

Other Commonly Used Codes:

52413002: Reinsurance Carriers These are typically used for extended warranty and other reinsurance providers etc.
44131: Automotive Parts And Accessories is also a catch-all category in the wide range of the car related businesses which also include the extended auto warranties.
524128: Other Direct Insurance (other than Medical, Life, and Health) for extended warranties and their providers.
The SIC codes are pretty consistent other than a few of the extended warranties and their businesses that have a more narrowed focus. It's important to select the code that closest matches the particular activities. 

Who Needs A Warranty Merchant Account?

Per the SCIC or Service Contract Industry Council, the industry is anticipated to grow exponentially over the next ten years. Per the national data, truck, car, and motorcycle owners are all keeping their vehicles for longer periods of time. Service contracts offer efficient and economical ways to maintain their vehicles for longer periods of time which gives them a more economical way to maintain their vehicle for longer periods of time. This is especially true when the limited manufacturer's warranty expires.

Additionally, the increased challenges with the components and the analytics in the more modern motor vehicles have serious financial implications if and when failures occur. Thus, it's vital to have this in the warranty industry. There are different warranties for different purposes and you'll need to have a complete explanation of each warranty that is being covered.

Implied Warranties, Warranties, and extended warranties tend to fall into a high-risk category that is all due to the nature of the process of the business. There are more chargebacks that are associated with auto warranties as the customer has as long as six-months to dispute all charges. Customers may also find that their warranties don't cover things that are normally covered. Chargebacks aren't any fault of the business, however, they can negatively affect the business. Many customers are so angry that they turn around and give the business a negative review. This only further complicates things for the business.

Chargebacks are a huge concern due to the issues with warranties and the related accounts. This is partly due to the sensitivity that follows with the negative information. It's vital to stay on top of the concern and be prepared for this to happen. Thankfully, even though it's a high-risk classification, the team is at the ready to assist you in the challenges as you work through these issues. This gives you the best position from which to get results. 

Multiple Payment Choices

Our goal is to help set you, the merchant, up for individual payment methods that work for everyone. For this reason, we offer multiple payment choices. These options help to integrate your CRM so that you can set up for recurring payments with your customers while they're on the phone.

This is how must of the industry works and if it's not the right solution, there are other ways to go about it. You can also utilize virtual terminals, credit card terminals, and website payment integration so that your customers have a variety of ways to pay. Our high-trained staff is only a moment away to assist you in your endeavors. We can work with you on telemarketing CRM integration as well as Secure E-commerce Payment Gateways. Our virtual terminals offer recurring payments as well. 

There are many great benefits to these options including Fast Secure Online Applications that offer online submission. There are also online Multiple Platforms as well as E-commerce solutions.

This gives you plenty of tolerance for auto warranty industry concerns including dedicated account managers that have years of experience that they're able to share. It also offers a diverse acquirer's benefit for the risk potential. This, coupled with fast turn-around offers you many options in your account.

Getting An Extended Warranty For Your Merchant Account

Our goal for you is to be your undisputed and the best-extended warranty merchant for your auto warranty business. Regardless of whether it's for a car or a truck, we want to be the best. In order to achieve that, we've gone the extra mile to cater to the needs of a variety of warranty businesses and to understand the various issues that crop up. We've created a few different options for extended warranty companies as a resource for obtaining all of the vital information that is required to offer and obtain extended warranty merchant accounts for all phone, retail, e-commerce, and we've gone above and beyond to design a method to accept both debit and credit cards to make it easier for the customers.

Why Can't I Just Go To PayPal For Extended Warranty Credit Card Processing?

While PayPal is a convenient payment platform, the simple answer is Paypal, Square, or Stripe or Payment Aggregators are all examples of the low-risk credit card processing methods. They don't want such high-risk businesses so they're far less likely to approve you as you're considered to be a high-risk account. Thus, they've designed their program to prevent such merchants. This is partly due to the underwriting and risk management procedures. 

To further complicate things, salespeople using the low-risk credit card processors as well as auto-approve aggregators won't even bother to tell you that they can't approve the business, they'll literally leave you hanging within a few weeks of your signing on and they don't give you a lot of details as to why. 

This is due in part to the low-risk as well as the aggregators who perform the underwriting after you've begun to use their programs. Thus, it's not front-end like the higher risk credit card processors. While this may make it appear to be lower in cost at the get-go, it actually winds up costing you even more money as you have to scramble to find a payment processing system that will allow for the high-risk. 

Again, to further complicate the entire process, it's less costly to go through an aggregator or a low-risk processor and the many types of extended warranty businesses fall for the trap of trying to apply to a low-risk provider and finding out that they suddenly are left without a means to accept payment. This means that they are in a hurry and when they're in a hurry, that's when mistakes are made. 

Save the time, hassle, and money by applying with a high-risk company at the start and avoid the rush of having to change payment processors at the last second and finding a high-risk processor when you need it most. 

Why Are The Extended Warranty Merchant Payment Accounts Considered High-Risk?

You already know that your company is a legitimate company. You know that you pay your bills in a timely fashion so you're wondering why you're considered to be high-risk. The truth is, it's the industry you're in. It has nothing to do with you personally. Extended warranties are all considered to be high-risk. It doesn't matter if you've been in business for a few days or a few years, it all boils down to the fact that it's a high-risk industry that you'll have to accept as a part of your business. 

When you're dealing with extended warranties, the customer has up to 6 months to dispute the charges on the card. Thus, the warranty may not cover everything and if a customer purchases a warranty and then finds out that it didn't cover their particular needs, they may dispute the payment. This may, in turn, make this a chargeback and no one gets paid. The customer is unhappy, you're unhappy because you have to pay them back, and it's a huge mess that you have to sort through to determine if there is something that was missed. 

This can be very frustrating for the business as it causes them to lose out on a lot of revenue. It's the job of the business to respond to the chargebacks and win the case, however, if there isn't enough in the bank account to cover the situation, it may mean that something else has to be used to pay for it. Eventually, the account may be over-drafted and cost more money. The customer is expecting a refund and you, the business, are left holding the money trying to decide whether you should repay the customer, or explain to the customer why their payment wasn't covered in the warranty and thus you can't give them the payment back. It's a vicious circle and challenging at best to sort out. Add to that the fact that not all merchant accounts work the same, and you have a recipe for a huge mess. 

The more frequently this happens, the more costly it can become for the business, especially if the money from that payment has already been utilized within the company and the customer is waiting for their money. It's for this reason that warranty companies are considered to be a high-risk entity.

How Do I Know Who Will Accept My Specific Type Of Extended Warranty Business?

It's important to note that not all high-risk merchant service providers will accept extended warranty places of business. However, in general, if your business is legitimate, well organized, and has been in business for a time, it's more likely to be accepted. Magnuson-moss warranty, for example, will have specific rules as well as auto warranty, warranty of merchantability, mechanical breakdown warranty's, warranty coverage, vehicle service contracts, merchant accounts, road hazards, factory warranty, the turn-around time as well as the implied warranty of merchantability. 

With a commitment to quality and our team's unsurpassed goal of customer service, we bring the valuable experience to your account to help you get it approved quickly and effectively with as little pain as possible. 

Our highly-trained staff is at the ready to assist you in all of your needs for your auto warranty merchant account. With a commitment to giving you 100 percent customer satisfaction, we're at the ready to assist you in all that you need to keep your company running smoothly. 

With decades of experience, our goal is to give you the help that you need to manage your payment concerns in a timely fashion. We help you to design a plan of action so that your merchant account can be approved quickly and efficiently. Give us a call today and let us show you how we can help you to get your merchant account up and running within just a few short days.