Auto Warranties

If you do not have sufficient money in your bank account to cover the dispute funds being pulled out, then it comes to your Credit Card Processor or ISO and their Sponsor Bank to cover the refund and what is now a loss.

When a company has a lot of incoming disputes or chargebacks, it can cause higher risk for the auto warranty company’s credit card processor. This is one of the reasons that auto warranty companies are considered High Risk

How Does Aacadia Help With My Automotive Warranty Merchant Account?

The difference between an automotive company that can accept credit cards ongoing and an automotive company that loses their ability to accept credit cards depends greatly and how well they manage and mitigate their chargebacks.

Because the automotive parts industry is dominated by relatively small companies, many don’t acknowledge this fact until it’s too late. Therefore, their merchant accounts cannot be saved, leaving them unable to accept credit card payments in the future.

Auto companies are a large risk due to the amount of “Friendly Chargebacks” that they are susceptible

A Friendly Chargeback is a situation in which the customer purchased the goods or service and used their credit card knowingly, but later they dispute the charge.

With regards to Auto Warranties, the customer is not satisfied with the service provided or maybe they feel a claim should have been covered for one reason or the other, but it was not covered and now they want a refund for the product they purchased. But instead of contacting the Auto Warranty company, they just accept the not covered claim and file a dispute with their bank.