Established UK IT support companies, managed service providers (MSPs) and technology service businesses can have payment requirements that are more complex than simply taking occasional card payments.
A technology business may collect monthly support fees, annual service contracts, project payments, software charges, telephone payments or higher-value B2B invoices.
Payment providers may want to understand exactly what the business provides, where it is established, who its customers are, how services are delivered, whether payments are recurring and how much activity is card-not-present.
This guide is specifically aimed at established UK-based IT support, MSP and technology service companies.
Who this guide is for
Merchant Advice Service currently focuses its provider-matching support in this area on established UK technology businesses with a verifiable UK trading presence.
This can include:
- managed service providers (MSPs);
- business IT support companies;
- IT infrastructure providers;
- cybersecurity and managed-security businesses;
- cloud and hosting support businesses;
- software support companies;
- technology consultancies;
- business telecoms and communications providers; and
- other established UK B2B technology service companies.
We do not currently provide provider matching through this service for overseas or offshore tech-support businesses seeking UK merchant acquiring.
Why can IT support businesses need specialist payment processing?
“IT support” describes a very wide range of businesses.
An established MSP providing contracted support to UK companies is very different from a business selling one-off remote technical assistance to consumers in another country.
Payment providers may therefore want to understand the business model before approving an account.
Factors can include:
- where the company is incorporated and operates;
- how long it has been trading;
- whether customers are businesses or consumers;
- where customers are located;
- the services being provided;
- how customers find the business;
- average transaction value;
- maximum transaction value;
- monthly card turnover;
- recurring-payment volume;
- MOTO or telephone-payment volume;
- refund and chargeback history;
- previous processing history; and
- whether a previous merchant account has been declined or terminated.
The important point is that payment providers should assess the actual technology business rather than relying solely on a broad sector label.
UK IT support companies versus generic remote tech support
This distinction is important when approaching payment providers.
A UK managed service provider might have:
- a UK registered company;
- several years of trading history;
- a verifiable UK office;
- an established company website;
- contracted UK business customers;
- monthly support agreements;
- staff and technical teams based in the UK;
- historic processing statements; and
- clearly documented services.
That creates a very different underwriting profile from an unidentified remote-support operation accepting one-off consumer card payments.
For UK limited companies, payment providers can also verify company information through the Companies House register.
When approaching a provider, describe the business precisely. Terms such as managed IT services, B2B technical support, cybersecurity services, cloud support, infrastructure management or software support can give an underwriter far more useful information than simply stating “tech support”.
What payment methods do UK MSPs and technology companies use?
The right payment setup depends on the commercial model.
A technology business might accept:
- recurring card payments;
- Direct Debit;
- payment links;
- online card payments;
- virtual-terminal payments;
- MOTO transactions;
- invoice payments;
- bank transfers;
- annual contract payments; and
- one-off project payments.
The business does not necessarily need to put every customer through the same payment method.
For example, a £75 monthly support plan and a £30,000 infrastructure project may be better suited to different payment arrangements.
Recurring payments for managed IT services
Recurring payments are common in managed services because customers may pay monthly for an ongoing service agreement.
Examples include:
- managed IT support;
- cybersecurity monitoring;
- cloud management;
- software support;
- device management;
- hosting;
- backup services;
- licence management; and
- ongoing maintenance contracts.
The business may need to manage:
- monthly or annual billing;
- new customer activation;
- price changes;
- additional users or devices;
- contract renewals;
- failed payments;
- expired cards;
- upgrades and downgrades;
- cancellations; and
- reconciliation.
This means the payment requirement may involve more than a merchant account alone.
The business may also need billing software, tokenisation, recurring-payment functionality and integration with its CRM or service-management platform.
Our Subscription Payment Processing guide explains how recurring billing and payment infrastructure fit together.
Card payments or Direct Debit for monthly IT support?
Both can be appropriate depending on the customer relationship.
Card payments can be useful where:
- the customer needs immediate activation;
- international customers are involved;
- the business already uses a card-based billing platform; or
- the customer prefers to pay by card.
Direct Debit may suit predictable UK recurring collections, particularly where the business has an established contractual relationship with the customer.
An MSP can also use more than one payment method.
The underlying billing system should ideally know what the customer owes and when, while the appropriate payment method handles collection.
Payment links for IT support companies
Payment links can be particularly useful for project work and outstanding invoices.
For example:
project agreed → invoice raised → secure payment link sent → customer pays → payment is reconciled to the invoice
A payment link can be used for:
- initial project deposits;
- hardware purchases;
- installation work;
- software charges;
- outstanding support invoices;
- one-off consultancy work; and
- other remote payments.
This can be preferable to asking staff to collect card details manually.
Read our Pay by Link guide for more information.
Find Payment Providers for Your UK Tech Business
MOTO and telephone payments for IT companies
Some established technology businesses still need to take occasional card payments by telephone.
This could include:
- an existing corporate customer paying an invoice;
- a known client paying for additional equipment;
- an agreed project payment;
- a renewal; or
- another legitimate card-not-present transaction.
These transactions may be processed through a MOTO-enabled virtual terminal.
MOTO payments can attract closer scrutiny because the cardholder is not physically present and the transaction does not follow the same authentication journey as a standard ecommerce payment.
Providers may therefore consider:
- percentage of turnover taken by MOTO;
- customer profile;
- transaction values;
- staff payment processes;
- fraud history;
- chargebacks;
- how customers are verified; and
- how card data is handled.
Read our MOTO Merchant Accounts guide for more information.
Why does customer location matter?
A provider may want to understand where the technology company's customers are located.
For example, a UK MSP providing contracted services predominantly to UK businesses can have a different payment profile from a remote-support operation targeting consumers across numerous international markets.
An application may therefore ask for:
- percentage of UK customers;
- percentage of European customers;
- percentage of customers elsewhere;
- consumer versus business customers;
- currencies accepted;
- international card volumes; and
- where services are actually delivered from.
Businesses should answer these questions accurately rather than presenting themselves as UK-only if a significant proportion of activity takes place elsewhere.
B2B versus consumer tech support payments
The customer type can materially change the payment profile.
An MSP with contracted corporate customers often has:
- documented service agreements;
- known customers;
- repeat billing;
- invoices;
- ongoing account management; and
- clear evidence of service delivery.
A consumer-facing remote support model may instead involve one-off customers, remote service delivery and a higher proportion of card-not-present transactions.
Neither structure should be described inaccurately.
The acquiring provider needs to understand the actual customer relationship.
High-value B2B IT transactions
Technology businesses can also process relatively large transactions.
Examples might include:
- server installations;
- network infrastructure;
- cybersecurity projects;
- hardware procurement;
- cloud migration projects;
- software licences;
- professional services; and
- annual managed-service contracts.
A provider may want to know both the average and maximum card transaction.
For example, a business primarily processing £500 monthly support payments but occasionally taking £20,000 project payments should disclose the larger expected transaction value during underwriting.
Large unexpected transactions can otherwise trigger additional review.
Hardware sales alongside managed IT services
Many MSPs do more than provide support.
They may also supply:
- laptops;
- servers;
- network equipment;
- phones;
- security appliances;
- software licences; and
- other technology products.
The payment provider should understand the approximate split between services and physical goods.
This can affect transaction values, delivery, refunds and the evidence available if a payment is disputed.
Deposits and project payments
Larger technology projects may involve deposits or staged payments.
For example:
project agreed → 30% deposit → equipment ordered → implementation begins → milestone payment → project completed → final balance
Where customers pay materially in advance, the provider may ask:
- what percentage is taken upfront;
- how long projects normally take;
- how much customer money relates to incomplete work;
- how suppliers are paid;
- how cancellations are handled; and
- how refunds are processed.
The larger the payment and the longer the delivery period, the more useful it is to explain the project lifecycle clearly.
Chargebacks for IT and technology businesses
Chargebacks can occur when a cardholder disputes a transaction with their card issuer.
Technology businesses should retain appropriate evidence of the customer relationship and service provided.
This might include:
- signed contracts;
- order forms;
- invoices;
- service tickets;
- project documentation;
- delivery records;
- customer correspondence;
- support logs;
- renewal information;
- refund records; and
- evidence of completed work.
Clear billing descriptors are also important so customers can recognise transactions on their statements.
Our Chargeback guide explains the broader dispute process.
PCI DSS and remote IT payments
PCI DSS applies to organisations involved in accepting payment cards, with the precise requirements depending on how cardholder data is handled and the payment environment.
Using an outsourced payment provider can reduce the amount of card data handled directly by the technology company, but outsourcing payment processing does not automatically remove all PCI DSS responsibilities.
This is particularly relevant for IT businesses because technical staff may already have access to sophisticated internal systems.
Card details should not simply be stored inside:
- support tickets;
- CRM notes;
- email;
- chat transcripts;
- remote-support software;
- spreadsheets; or
- other general business systems.
The business should use an appropriate payment process for the channel being used and understand its PCI DSS responsibilities.
Integrating payments with PSA, CRM or billing software
Established MSPs may already use a professional services automation platform, CRM, accounting package or billing system.
The payment setup may therefore need to connect with:
- customer accounts;
- contracts;
- invoices;
- subscriptions;
- service usage;
- renewals;
- accounting;
- refunds; and
- payment reconciliation.
Before choosing a payment provider, establish which system should be the source of truth for what the customer owes.
The gateway should not accidentally become the only place where the business understands its customer contracts or billing logic.
Our Integrated Payments guide covers the wider integration questions.
What will a payment provider ask a UK tech company?
An application can include:
- UK company name;
- Companies House registration number where applicable;
- registered and trading addresses;
- directors and beneficial owners;
- years trading;
- company website;
- description of services;
- customer type;
- customer countries;
- monthly card turnover;
- average transaction value;
- maximum transaction value;
- recurring-payment volume;
- MOTO volume;
- processing statements;
- refund history;
- chargeback history;
- financial information;
- customer contracts; and
- details of previous declines or processor termination.
For UK incorporated companies, information such as company status and registered details can be checked against the public Companies House register.
What if the technology business has previously been declined?
A merchant account decline does not automatically mean another provider will reach the same conclusion.
However, the reason for the decline should be understood before another application is submitted.
Possible issues may include:
- unclear business model;
- lack of UK trading evidence;
- customer location;
- high MOTO volumes;
- large transaction values;
- chargeback history;
- website concerns;
- financial information;
- previous account termination;
- services outside the provider's appetite; or
- an incomplete application.
An established UK technology business should provide evidence that helps an underwriter understand the company rather than repeatedly submitting a generic “tech support” application.
Our High-Risk Merchant Account Applications guide explains how more complex applications can be prepared.
What should an established UK IT company compare between providers?
Provider suitability is more important than a headline transaction rate.
Compare:
- provider appetite for the actual business model;
- UK B2B technology experience;
- recurring-payment support;
- MOTO capability where required;
- payment links;
- online payment capability;
- high-value transaction limits;
- international card support;
- gateway integrations;
- billing-system compatibility;
- settlement;
- refunds;
- chargeback support;
- reporting;
- PCI responsibilities;
- contract terms;
- support; and
- total processing cost.
Find Payment Providers for Your UK Tech Business
Preparing a UK technology business for provider matching
Before approaching providers, assemble a clear picture of the business.
Ideally, be ready to provide:
- UK company registration details;
- business website;
- clear explanation of the services provided;
- how long the business has traded;
- customer type;
- customer locations;
- monthly card volume;
- average and maximum transaction values;
- recurring-payment requirements;
- MOTO requirements;
- current provider;
- processing statements where available;
- chargeback history;
- reason for changing provider; and
- details of any previous decline or termination.
This allows Merchant Advice Service to understand the payment requirement before introducing the business to providers that may be suitable.
Sources & References
About Merchant Advice Service
Merchant Advice Service (MAS) provides independent information, comparison and provider-matching support for UK businesses looking for payment services.
For technology-sector provider matching, MAS currently focuses on established UK businesses with a verifiable trading presence and a clearly defined payment requirement.
We help businesses understand their payment requirements before introducing them to providers that may be suitable. MAS does not provide payment processing services directly.
Disclosure: Merchant Advice Service may receive commission from payment providers following a successful introduction. This does not increase the price paid by the merchant and does not determine which providers are included in our editorial guidance.
