Every merchant account comes with monthly processing volume limits.
And chances are if you’re looking for a high volume account you already know this. So what can you do should you need to process 100k a month and you’ve only been approved for 20 or 30k?
Get another account.
In fact, some businesses need to have several merchant accounts just to handle their monthly processing needs…
High volume merchant account facts
I know it sounds strange to think that merchant accounts come with processing limits, but it’s true.
And the reason is based on how much risk the processing company feels comfortable with when it comes to your account. You may already know that the one “sin” when it comes to accepting credit cards is chargebacks.
And processing banks hate them, with a passion.
You see, when they approve a transaction and deposit the funds in your account 24 to 48 hours later (excluding any holdbacks) they receive payment from the card issuer down the road. Which means that processing back essentially “front” you the money and await repayment from the person who paid you online (or in person).
Chargebacks are a concern for processing company because they want to make sure they’ll get paid.
Now, when a chargeback happens they typically get the money from your account. And for them to feel comfortable that they’ll be able to get the money from your account is based on:
- your financials (established at underwriting)
- your processing limit
So you can see that when it comes to processing a high volume of sales, you’re in a situation where one account or processing company simply isn’t sufficient to get the job done.
And in that case you need to have multiple merchant accounts, with multiple providers.
Think of it as diversifying YOUR financial risk (i.e. account freezes by their “risk” department).
The key for getting multiple accounts is by working with someone who:
- understands your needs
- specializes in helping high volume businesses
- has multiple relationships with processing banks
You can either go through the hassles and headaches of working with multiple sales reps, multiple companies, etc. or work with someone who can take care of all this for you.
Does that make sense to you?
I hope you found this information helpful. Please feel free to share your comments below.
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