Business thrives on sales. The sole purpose of operating a business is to make a profit.
There are merchants who start with a limited number of sales and grow over time whereas, other businesses sell large ticket items, to begin with. While processing a high amount of transactions is a dream for any merchant, obtaining a merchant account to process can be an obstacle. It is, especially, difficult for high-ticket product merchants to secure a merchant account simply due to their business type and being categorized under the high-risk industry.
Merchant account providers usually set a limit to the number of transactions that can be processed monthly. Once it hits the monthly limit, a merchant cannot process further sales. The merchant has to essentially stop taking in sale orders until the following month.
With the current competitive market businesses also need to ensure growth in sales in order to survive. Business cannot afford to miss out on valuable customers. No merchant wants to hit stagnancy.
When obtaining a merchant account, merchant account providers set an average upper limit on transactions for a business. Setting a processing limit is a necessity for merchant account providers. Reason being, a limited processing volume protects processors against an increase in chargebacks.
Friendly frauds are frequent in the industry. Unusually large amount of transactions raises the probability of high chargeback ratios, fraudulent sales, scammers and other fraud activities. The risks associated with these businesses are what make it difficult to get a standard merchant account for high volume merchants.
What is a High Volume Merchant Account?
High Volume Merchant Account is a merchant account wherein a merchant can process high-ticket items or a large number of transactions on a monthly basis.
If a merchant consistently crosses the upper limit set by the processor, there is a threat to their funds being put on hold. A merchant account that specializes in high volume transaction processing proves to be the perfect fit for such merchants. Features offered by high volume merchant account are similar to a basic merchant account.
High volume merchant accounts are beneficial for merchants planning on expanding their business. Merchants need not worry about rejecting sales after surpassing a certain amount with the maximum processing volume being available to you.
Involvement of large-ticket items, being considered vulnerable to frauds and chargeback risks, high volume merchant account are provided with an extra level of security than a regular merchant account.
Obtain a High Volume Merchant Account
Getting approved for a high volume merchant account requires your business to be proven legitimate with a low or no chargeback history.
Also, it is extremely necessary for a merchant to discuss the business processing volume with a potential merchant account provider before taking a decision.
Sometimes, a merchant may apply for high volume merchant account but will be granted an account with a certain processing limit. In such cases with longevity, trust and low chargeback ratios, a merchant should build a positive transaction history with its processor and negotiate the limit over time. The longer you process, more the chances of increasing the limit. A high volume merchant can request increasing the processing caps in typically 3 months.
Turn to high volume merchant account specialists such as IBS and get multi-feature benefits and top-notch services customized to meet your business demands.