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Green.Money™

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ChatGPT Pro Report

Tech support in the U.S.—ranging from remote desktop assistance to software subscriptions—is treated as high-risk by payment processors. This is largely due to its association with chargeback-heavy scams and consumer protection issues, even when operations are legitimate.

1. Why Credit Card Processors Flag Tech Support as High‑Risk

Major networks (Visa, Mastercard) categorize tech support under risk layers due to:
 

  • High chargeback rates stemming from seniors or inexperienced users who forget charges or don’t recognize billing descriptors.

  • Fraud history, including clams of pop-up virus alerts, unsolicited calls, and aggressive upselling tied to scams.

  • The difficulty of verifying service delivery (no physical product), making it harder to dispute fraud claims.
     

As a result, Stripe, PayPal, and Square usually prohibit or heavily restrict remote/outbound tech support services.

2. Merchant Account Denials, Freezes, and Closures Are Common
 
Even legitimate tech support providers often face:
 

  • Sudden account closures citing vague “acceptable use” violations.

  • Reserves of 20–50% held for six months, stifling growth.

  • Delayed settlement of recurring or high‑value transactions, impacting cash flow.

  • Monthly processing caps, limiting scalability.
     

Processors often apply these measures even when chargebacks are low, penalizing the industry as a whole.

3. Chargebacks Are Inevitable—and Often Unwinnable
 
Tech support faces unique challenges with "friendly fraud", where customers:
 

  • Forget subscription charges.

  • Don’t recognize billing descriptors.

  • Deny authorizing deposits.
     

Even with logs or session recordings, merchants rarely win disputes. Exceeding a 1% chargeback ratio usually triggers account termination under card network rules.

4. ACH Offers an Alternative—but NACHA Adds Constraints
 
While ACH debits can circumnavigate card fees, they carry significant risks under NACHA rules:
 

  • Authorized return thresholds maxed at 0.5%, with banks monitoring tightly.

  • Returns can happen up to 60 days post-transaction, adding revenue risk.

  • Banks often refuse ACH services to outbound or subscription-based tech support without thorough underwriting.

  • NSF and unauthorized return fees further eat into margins.
     

ACH is a viable alternative—but NACHA enforces strict guardrails.

5. Why Direct Bank-Based eDebit Systems Are Becoming Popular

To bypass both card and ACH limitations, forward-thinking tech support providers are turning to proprietary eDebit systems, which:
 

  • Bypass both Visa/Mastercard and NACHA networks entirely.

  • Rely on real-time bank login authentication, greatly reducing fraud.

  • Provide high approval rates, even for outbound calls and subscriptions.

  • Offer greater stability, freeing businesses from restrictive thresholds.
     

In essence, these systems give merchants better control, fewer disputes, and smoother cash flow.

Final Thoughts
 
If you provide remote or subscription-based tech support, traditional payment systems may unfairly block or burden your business. But in 2025, you don’t have to accept it:
 

  • ACH offers a workaround—but comes with stringent NACHA limitations.

  • Proprietary eDebit solutions offer reliable, bank-to-bank transactions, ideal for high-risk services like yours.
     

Your service isn’t the issue—your payment infrastructure may be. It’s time to explore smarter, more resilient payment options.

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