If you are processing an unusually large number of transactions per month, or your transactions consist of large ticket items, you may want to consider a high volume merchant account. A high volume merchant account allows the expansion of your business to be limitless. You will be able to process an extremely large amount of monthly transactions with dollar volume. Or you can process very large ticket items based on specific approval parameters and underwriting done prior to the actual transactions taking place.
If you do not have a high volume merchant account, you may find your funds placed on hold if your transaction volume continually surpasses the limit set by your merchant account provider. You may even be prevented from processing all together should the merchant processor not be aware that you are processing past your limit ahead of time. It is important that you call us today so we can make sure you are set up properly for your high volume merchant account transactions.
What is Considered “High Volume?”
When you go through the process of signing up for a merchant account, most merchants accounts have an average transaction limit set between $2,000 – $10,000 a month. This number varies and is customized based on many different factors.
If you consistently process past your transaction limit, then you may find that your funds are placed on hold more frequently and you may even find your merchant account has been suspended pending an inquiry from your processor.
Please keep in mind that you are not being punished because you are successful. These processing limits are a necessary way for the merchant account industry to discourage fraudulent merchant accounts. Often time scammers will go through the process of setting up a merchant account and then run massive charges with stolen credit cards through the account. When customers start to see charges from their stolen credit card and the merchant account starts getting hit with chargebacks, scammers shut down their account and move on to the next target. That is why the processing limit is necessary. It helps merchant account providers protect themselves from all the damage that can be done by an account with no transaction processing limits.
Benefits of a High Volume Merchant Account
The most natural benefit of a high volume merchant account is that the amount of transactions and dollar volume you process will not be in jeopardy. You have the ability to grow your business to the level that suits you as the business owner. You are receiving the maximum amount of processing volume, with the maximum amount or security at the best price and service possible.
Additionally, you will most likely receive processing discounts with a high volume merchant account that can help you save money.
High volume merchant accounts typically have more security in place than regular merchant accounts. With large ticket items it can be important to make sure that all of your customers are legitimate through a detailed verification process. There is more at stake in regards to chargebacks for large ticket items.
Is There a Difference Between High Volume and High Risk Merchant Accounts?
Yes. There is a rather large difference between a high volume merchant account and a high risk merchant account. A high volume merchant account requires that you prove you are a credible business with a proven credit card processing history. High volume is typically anything over $100,00 (this varies from one merchant account provider to another.)
A high risk merchant account is typically reserved for those with bad credit history or a business that falls into one of the high risk industries listed below:
Adult Related eCommerce
Online eCigarettes and Vape
Online Firearms and Ammo
Payday Loans (including Tribal)
Short Term Loans
Student Loan Assistance
Tech Support/Remote IT*
How To Businesses
Travel Packages/Tour Operators
Mail Order/Telephone Order
*expect a reserve
Keep in mind that while a high risk merchant account and a high volume merchant account are essentially different, if you have a high volume merchant account you can also be considered a high risk merchant account by your merchant account provider. This is simply because there is more risk that a merchant account provider takes when approving you as a high volume merchant account.
What Kind of Cards Can I Accept with my High Volume Merchant Account?
A high volume merchant account is similar to a regular merchant account. You will be able to accept all standard credit cards such as: Visa, American Express, Mastercard and Discover cards.
How Do I Obtain a High Volume Merchant Account?
There are many things you can do when applying for a high volume merchant account. The first is to prove to your merchant account provider that you offer legitimate services. A positive merchant account history with little to no chargebacks can be a great testimonial to the legitimacy of your business.
If you have had a merchant account for quite a few years, this is also a mark in your favor as a clean history can help prove that you are least likely to be involved in a fraudulent business.
We encourage you to make use of any type of system that protects you against fraud. These systems can include the address verification system (AVS), the CVC code on the back of a credit card, or verifying that large orders are legitimate.
For the most part, when you apply for a high volume merchant account, the steps are very similar to applying for a standard merchant account. To get the best rates possible, your merchant account provider will ask for the following:
Most recent credit card processing statements
Most recent tax returns
Most recent financial statements
Most recent bank statements
Information about How Your Business is Set Up (DBA, Partnership, Corporation)
IRS Confirmation of Non Profit Status — 501(c)(3) status
Business checking account
What If I Requested a High Volume Merchant Account and Received a Much Lower Processing Limit?
We recommend that you remain patient with your merchant account provider if you don’t receive approval for a high volume account immediately. They have rules that they must follow before they can approve you for a high volume merchant account. By continuing to build a strong relationship with your merchant account provider, building a positive transaction history and keeping chargebacks low, it will likely increase your chances of eventually being approved for a high volume merchant account.
Please keep in mind that if you are currently shopping and pricing for the best rates and fees possible, call us first! All we need is a copy of your 2 most recent credit card processing statements from your current merchant service provider or an honest conversation about your business model and future goals for growth. Contact us today!