Warranty Merchant Accounts and Payment Gateways

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Warranty Business Payment Processing

Welcome to Merchant Advice Service, your trusted source for friendly and educational information on high-risk merchant accounts. In this article, we’ll take a look into the world of warranty merchant accounts and payment gateways, exploring how they work and why they are essential for certain businesses. We understand the unique needs of merchants operating in high-risk industries, and our goal is to provide you with the knowledge and insights you need to make informed decisions.

Warranty merchant accounts

Merchant accounts for warranty businesses can be hard to come by, with limited acquiring banks providing a processing in the insurance/warranty space. If you’ve landed on this page the likelihood is that your business is struggling to obtain a merchant account, or worse still have been declined/terminated by a merchant account provider. We’ll take a look at the steps for finding the best warranty merchant account, and help you make informed decisions when it comes to all things card payments.

Warranty merchant services

The reason it becomes difficult to find long term and stable processing for the warranty industry is because most acquiring banks deem the industry high risk. As a result, mainstream and high street banks tend to steer clear of warranty businesses. However just because you’ve been turned away from one merchant services provider it doesn’t mean that all will say no. Before we begin, let’s try to understand why merchant account providers see warranty businesses as high risk.

Warranty high risk merchant accounts

High risk card processing can feel a little daunting, so it’s worthwhile taking the time to understand why warrant companies fall into the high risk merchant account bracket.


CUSTOMER NOT PRESENT TRANSACTIONS – often in warranty companies card payments are taking over the phone without the card present (MOTO) which means the transactions present a higher risk to the bank. 


RECURRING PAYMENTS – the usual set up for a warranty business is monthly or annual pre authorised recurring payments, which historically come with higher risk of chargebacks.


FRAUD – sadly sometimes a few ‘bad apples’ ruin it for the majority, fraud rates for warranty business owners are higher than most, with means banks are reluctant to process payments (understandably)!


The reasons here are why most high street and mainstream banks choose to steer clear of warranty card processing forcing warranty business to look at alternative or offshore options.

Warranty credit card processing

Ok, now we understand the objections some card processing providers have, it’s time to look at the application process and how together we can package your case effectively to ensure the best possible chance of successful and long term processing. Here are our tips;


  • Criteria – make sure warranty businesses fit within processing criteria of the bank, some will review applications on a ‘case by case basis’ however if it’s a ‘yes’ from the beginning you are less likely to be terminated at a later stage.
  • Security and compliance – having increased security levels and PCI compliance standards will not only go in your favour but will reassure the processing bank and your customers.
  • Use more than one merchant account provider – this means that should the worst case happen and your warranty business receives notice, you’ve got a back up.
  • Chargeback management – make sure you have a gateway provider or third party who will manage and therefore reduce chargebacks. Banks working with warranty businesses like to see that you are doing your best to limit chargeback issues.

Warranty payment providers

Finding a decent payment provider for your warranty business can be hard, and there is always a risk of account termination – no matter how high your monthly turnover. So, when submitting your application, it’s important that it’s packaged correctly to ensure maximum chance of success. If you are unsure of where to begin, it might be worth using an un-biased broker to help. Alongside your application form you’ll be asked to submit the following documentation;

  • Director/shareholder ID and proof of residency
  • Corporation Certificate
  • Proof of registered business location
  • Customer terms and conditions
  • Customer contracts
  • Licencing if applicable
  • Six months processing history to establish chargeback ratios

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Warranty payment processors

Once your application has been approved by the underwriting team of your chosen bank, they will then offer the terms in which they will be able to support your business. This includes processing rates and fees as well as settlement timeframes. In high risk industries like warranty companies you should expect to have either a rolling reserve or deposit included in these terms. This is to counterbalance the risks associated with processing payments on your behalf, specifically chargeback and fraud issues.

Warranty online payment processing

Although most of the card payments taken for warranty products will be over the phone, you will need some online elements to enable the transactions to be authorised. Virtual Terminals allow you to take one off payment and set up recurring payments for monthly subscriptions. It works similarly to an online shopping cart, whereby you key in the customer card details to a webpage.


Warranty payment gateways

To accept payments online or via a Virtual Terminal you will need a payment gateway as well as a merchant account. The payment gateway works by encrypting customer card information and communicating it between the merchant bank and customer bank account before funds are settled into your business bank account.


Choosing the right payment gateway for your warranty business can be complex, as there are a few things to consider;



How Merchant Advice Service Can Help

Merchant Advice Service is committed to assisting high-risk merchants in finding the best payment processing solutions tailored to their unique requirements. Our team of experts understands the challenges faced by high-risk businesses and can connect you with reliable payment gateway providers and assist in obtaining a warranty merchant account. To explore how we can help your business thrive, visit our High-Risk Merchant Accounts page. For more informative articles, tips, and updates, check out our blog page and stay informed about the latest trends in the payment processing industry. For more advice like this, visit our blog page!

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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