Technology is at the forefront of industry today, which makes technical support an absolutely crucial service. The tech support industry is fast-paced and constantly evolving. Technical support is now offered remotely, and a lot of the processes are being automated.
Firms in the industry are constantly on the look-out for the best talent and the latest solutions for newer devices. But this technical industry faces a crucial bottleneck – payments.
A Changing Industry
Tech support is an ever-changing industry. There’s a lot of tasks tech support teams used to deal with that are now being automated. Consumer products with AI built-in and developed by corporate giants like Google and Apple will eventually need very little support.
However, businesses have different requirements and will always need more in-depth support from technicians, regardless of their size.
Services like technical support don’t need to be local anymore. While big businesses may still prefer to have an on-site technical support department, smaller businesses tend to prefer the flexibility of a remote technical support team.
Outsourcing tech support to a remote team is cost-effective and highly efficient. But paying for such services is the biggest complication. Remote teams can be receive payments from customers spread across the world. These payments can be in different currencies and be processed at different speeds. Not to mention the fact that your firm needs to manage the various financial regulations and taxes in different parts of the world.
The trouble with American tech support companies or foreign companies that deal with US customers, is the relatively quaint financial system here. The payments infrastructure is in need of modernization.
Another problem is the relatively high risk of credit card chargebacks in this industry. Technical support is a complex business and most consumers are not well aware of the limitations of this service. Even if your team has managed to solve the issue for the customer, they could face another, unrelated problem down the line and blame your service for it. This could be one of the reasons credit card chargebacks are so high in throughout the industry.
Major financial institutions or acquiring banks have noticed this higher rate of credit card chargebacks and decided to classify the whole industry as high risk. The banks and card companies tend to favor the clients when it comes to disputed claims. This means technical support firms can lose a lot of money on credit card chargebacks.
Multinational businesses of all sizes lost about 1.6% of revenue last year in credit card chargebacks alone. That is a tremendous lose for businesses regardless of their scale.
Fortunately, there are ways tech support companies can deal with this bottleneck and provide world-class services to their customers. Payment solution providers can offer a technical support merchant account which fits well with the business model.
High Risk Merchant Accounts
One of the easiest ways to increase orders while decreasing risk of chargebacks is to accept echecks either through the ACH network or through an electronic check processor. All tech support companies are wise to accept checks online and checks by phone.
Echecks are the most popular alternative method of payment for US customers. The more way customers can pay you, the more money you’ll make.
High risk merchant accounts for card payments are also available and are designed specifically to mitigate risks in payments. The Payments network is usually automated and each transaction is spread across a network of acquiring banks to mitigate the risks. This allows your business to accept card payments from customers across the globe and significantly reduce your risk of credit card chargebacks.
These merchant accounts have a number of features that can speed up and secure transactions. Payment processors can offer a virtual terminal that lets you offer a variety of payment options to your customers. The built-in system is PCI-compliant and encrypted with bleeding edge software. A tech support merchant account can handle tremendous volumes at lightning speed.
Does your business need built-in protection against credit card chargebacks?
Speak to our team to learn more.