Businesses that produce high volumes of electronic transactions per month may find it difficult to get a perfect merchant account that meets all their business’ needs. This is because successful approval of all merchant account applications depends on predetermined processing limits which establish the monthly processing volume cap. Processing limits are often defined by;
- Your processing volume per month
- High ticket/ sale amount
As a business owner, you should estimate the above attributes when setting up a merchant account to give room for growth. But if you exceed the pre-set limits, your processor can lawfully retain the excess finances until the overage is looked into and your processor is at ease. So if your monthly volume and sale amounts have gone above the pre-established limits, you can always request for an increase in your processing limits.
However, an increase in your processing limits is subjective; therefore you must understand the following factors before making a request.
- Business Banking Balance- the month-to-month balance in your business account
- Your Business’ Credit Score
- Your Business’ Processing History
- Recurring Billing- if your business allows recurring billing then you must be subjected to high chargebacks.
- Your Industry and Transaction Method
- Reason for Increase
How to get a higher processing volume limit?
If your business is new, your merchant account will come with a set monthly volume cap (maybe $80,000, depending on your provider). But as soon as your business begins growing, you will need to raise it to say $150,000 or 200,000. This is a major problem because your business is as good as dead for the better part of the month if you can’t accept more card payments. So, here’s one way to go about it:
If you’ve been processing payments for 3 to 6 months and haven’t asked for a limit increase, then you can easily ask your service provider. And after a thorough review of the above listed factors, the service provider will increase your monthly high risk credit card processing volume cap.
All fast growing business will definitely need to raise their monthly processing volumes as soon as they begin anticipating more sales. And this is only possible if the merchant account provider agrees; of course after viewing you processing history.