What is a High Volume Merchant Account?
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 approval allows the expansion of your business to be limitless. You can 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 is done before the actual transactions takes place.
If you do not have a proper 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 altogether should the merchant processor not know you are processing past your limit ahead of time. You must call us today so we can make sure you are set up properly for your high volume merchant account transactions.
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What is High Volume Payment Processing?
Businesses that process at least $100,000 monthly are considered high volume payment processing merchants.
When you go through the process of signing up for a merchant account, most merchant accounts have an average transaction limit set between $2,000 – $10,000 a month.
If you consistently process past your transaction limit, then you may find that your funds are placed on hold because of high volume payment processing. 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 accounts and move on to the next target. That is why the processing limit is necessary. It helps High Volume Payment Processing providers protect themselves from all the damage that can be done by an account with no transaction processing limits.
High-Volume Merchant Account – What are the Benefits?
The primary benefit of a high volume merchant account is that the number 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 a business owner.
You are receiving the maximum amount of processing volume, with the maximum amount of 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 regard to chargebacks for large ticket items.
Is There a Difference Between High Risk and a High Volume Merchant Account?
Yes. There is a rather large difference between a high risk merchant account and a high volume payment processing.
A High Volume Payment Processing acquirer 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 a bad credit history or a business that falls into one of the high risk industries listed below:
Adult Related eCommerce
Male Enhancement
Air Charters
Marketing/SEO
Bail Bonds Merchant Accounts
Muscle Enhancement
Check Cashing
Nutraceuticals
Coins/Collectables
Online CBD
Collections Agencies
Online eCigarettes and Vape
Credit Repair/Restoration*
Online Firearms and Ammo
Dating Websites
Online Liquor/Wine
Debt Relief/Consolidation
Online Tobacco
Direct Marketing/MLM
Payday Loans (including Tribal)
Document Preparation
Short Term Loans
eCommerce
Skincare
Furniture
Student Loan Assistance
Gentlemen’s Clubs
Tech Support/Remote IT*
Home Improvement
Teeth Whitener
How To Businesses
Timeshares
Jewelry
Title Loans
Legal Advising
Travel Packages/Tour Operators
Magazine Subscriptions
Trial/Continuity*
Mail Order/Telephone Order
Web Development
Penny Auctions
*expect a reserve
Keep in mind that while a high risk merchant account and a high volume merchant account are essentially different, they can both be considered one of the many high-risk merchant benefits offered 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 Payments Can I Accept with my High Risk Merchant Account?
When a business gets a high volume merchant account, credit card payments are a mandatory form of payment from customers. This is particularly important for merchants that transact business online and over the phone.
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.
High volume merchants deal with transactions that can either be high or low value. As a result, it is advised for merchants to have more than one high volume merchant account in case something happens to one account.
What To Do If You Need High Risk Credit Card Processing
The first step for high volume payment processing 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 high volume 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 merchant account with 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
High Volume Transactions – How to Increase Your Merchant Account Limits
The merchant account limits of high volume transactions and a high volume payment processing are determined by 2 factors:
- Merchant’s monthly processing volume
- High ticket sales
Businesses can request for an increase in their merchant account limits once the pre-set limits are surpassed. For example, if you have a volume cap of $90,000 every month, when you pass that threshold, it is normal to request an increased limit of $140,000 or $180,000.
Here are some important things to keep in mind when you request a limit increase:
- Industry type
- Method of payment
- Business credit score
- Business processing history
- Reason behind increase
- Recurrent billing (possibility of chargebacks)
- Business banking balance (monthly balance of business account)
What If I Requested a High-Risk Merchant Services 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 merchant account immediately. They have rules that they must follow before they can approve you for a high-volume merchant account. Continuing to build a strong relationship with your merchant account provider, building a positive transaction history, and keeping chargebacks low, will likely increase your chances of eventually being approved for a high-volume merchant account.
Please remember 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!
