An extended warranty is a great arrangement for both merchants and customers. Customers are able to use their devices with confidence, knowing they’re protected in case of a manufacturer’s defect. Meanwhile, warranty providers make a profit from well-made products that never need to invoke the warranty.
Although this is a well-established business model, it’s also based on a substantial amount of risk.
If large numbers of warrantied products break, your company won’t be able to turn a profit. As a warranty provider, your revenue comes from a large number of small transactions rather than a few large ones, opening up more opportunities for fraud. The amount of risk inherent in the industry can make it difficult to set up a merchant account with traditional payment processors.
The warranty business model works because there are plenty of opportunities for profit. Free Merchant Terminal is the payment processing solution that’s willing to stand by your company and help manage the risks of the industry.
Take Large or Small Payments
Accept a large number of payments every month without losing track of customer purchases.
Integrate with the biggest payment options in the industry.
Catch fraud immediately.
Stay connected to a customer service agent who can help manage your payment options.
Fraud is a big issue in every industry, but in high-risk industries, it’s even more prominent. When you’re dealing with such a high level of risk, fraud that goes undetected can have a huge impact on your business.
Free Merchant Terminal provides you with the tools you need to detect and eliminate fraud in your business. You can even access your account remotely, so you’re able to deal with fraud even if you’re not currently at your desk.
The reason warranties are so enticing for customers is that they have to pay a very small cost in relation to their purchase. Even for purchases above $1,000, an extended warranty may be no more than $100, making it a great deal if there does end up being a defect.
Especially if you’re offering warranties on small orders, it’s likely that your profit will be made through dozens or even hundreds of small transactions, rather than just a few large ones. With Free Merchant Terminal, your company can process each of these transactions with ease, and keep detailed track of every purchase for easy record keeping.
When you’re already in such a high-risk industry, it’s a good idea to minimize your risk wherever possible. Although you should be using secure servers throughout your website, taking payments is an entirely different issue, and one that can be very intimidating.
To reduce your liability and make your customers feel more at ease with making their online payments, choose Free Merchant Terminal to process payments through secure third-party servers. You’ll reduce your liability and your customers will feel more comfortable, making it truly an all-around good idea.