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I don't know if anybody else has had this happen, but we weren't able to get Intuit to approve a Merchant Service account for a phone service. Selling phone hardware didn't seem to be a problem... it was the monthly charge for phone service. Has anyone else run across this?
I went through this with PayPal.
This type of service is considered a high-risk for charge backs.
You have to make your refund policy, terms of use, and sometimes a utility service agreement that these companies will feel provides adequate protection from abuse of charge backs.
Take a good look at your policies and then re-apply.
The whole process is infuriating, but it is for their protection as well as yours... and is a simple matter of paperwork and diplomacy.
We used Intuit for awhile, without any trouble. But we had applied years ago as a seller of general computer and electronics.
Plus we have a retail location, which probably helps a lot. The web processing was added later.
So you might try applying just for a card swipe terminal. Adding the web portal is usually an easy request from there.