Why underwriters look closely at extended warranty
Telemarketing history
Robocall campaigns for vehicle service contracts drew FTC and FCC enforcement, and acquirers remember it.
Long service terms
You’re paid now for coverage that lasts years. If claims aren’t honored, the disputes arrive later.
Cancellations and refunds
Pro-rated refunds on cancellation are often required and have to be handled correctly.
A payment setup that fits
How we usually set up extended warranty companies. Your consultant tailors it to how you actually sell.
- 1
Payment plans with authorization
Monthly plans by card or ACH, with signed authorization.
- 2
Clear cancellation and refunds
A written pro-rata refund policy, applied consistently.
- 3
Call recordings
Recorded sales calls show exactly what the customer agreed to.
What you’ll need to apply
Have these ready and your application moves faster. Your consultant confirms the exact list for the processor you’re matched with.
- Government ID for every owner with 25% or more
- Voided business check or bank letter
- Recent business bank statements
- Recent processing statements, if you have taken cards before
- Articles of incorporation and EIN letter
- A website with clear pricing, refund, cancellation and contact details
- Agreement with your administrator or obligor
- Proof of insurance backing the contracts
- State licenses or registrations
- Sales scripts and call recording process
Why applications get declined, and how to avoid it
- Outbound robocalls or unsolicited calling
- Contracts not backed by an insurer
- Unclear cancellation terms
- Scripts implying you’re the manufacturer or dealer
We review your website, policies and statements against these before anything is submitted.
Keeping the account healthy after approval
Getting approved is half the job. These habits keep your account in good standing, and our platform tracks the numbers behind them for you.
- Email the full contract right after the sale
- Process cancellations and refunds quickly
- Track claim complaints alongside chargebacks
Extended warranty: common questions
Are vehicle service contracts harder to place than home warranties?
Usually, because of the industry’s telemarketing history. Inbound and dealership sales are easier to place than outbound calling.
Do we need insurance backing?
Most acquirers want to see contracts backed by an insurer or a financially sound obligor.
Can customers pay monthly?
Yes, with written authorization and clear cancellation terms.
What happens after I’m approved?
We keep working with you. Our platform gives you one view of every account, and we review your chargebacks, approval rate, fraud tools and fees with you so the account stays healthy and gets cheaper over time.