If you’re a product owner or service provider who processes payments with a high-risk merchant account, you may have noticed that your payment processor account has a monthly volume processing limit. This can be frustrating if your business is growing and you need to process more payments each month. So, why do high-risk merchant accounts come with monthly volume limits? Let’s take a closer look at this issue.
What is a Merchant Limit?
In general, a merchant limit is the maximum amount of money that a merchant can process in a given month. This limit is set to protect the merchant processor from excessive risk. High-risk merchants are more likely to experience chargebacks and fraud, so they typically have lower limits than low-risk businesses.
A chargeback occurs when a customer disputes a charge with their credit card issuer. If the dispute is resolved in the customer’s favor, the issuer will reverse the charge, and the merchant is then responsible for paying the associated fees.
Chargebacks can be costly and time-consuming to resolve, so processors limit the number of transactions high-risk merchants can process each month. This helps to avoid potential losses from excessive chargebacks.
Volume limits also help to protect processors from fraudsters who may attempt to process large numbers of fraudulent transactions. By limiting the number of transactions processed each month, merchant service processors can reduce their exposure to fraud.
What is High Transaction Volume?
High transaction volume refers to the amount of money processed through your account each month. This includes both credit and debit card transactions. If you process a large number of small transactions or a small number of large transactions, your high transaction volume will be different.
What is a High-Risk Merchant Account, and Why Do I Need One?
A high-risk merchant account is a type of bank account that allows businesses to process credit and debit card payments.
Merchants considered high risk are typically those who operate in e-commerce or traditional industries with a higher than average rate of chargebacks or fraud. This could include types of businesses such as vape or e-cigarette stores, CBD suppliers, online pharmacies, dating services, the adult industry, or gaming websites.
Seven Signs You Need a High-Risk Merchant Account
Your business is growing at a fast pace, and you’re processing more payments each day. As your business grows, you’ll likely see an increase in the number of payments you’re processing daily. If you’re heading toward processing a high volume of transactions, you need a high-risk merchant account that can handle the increased activity without disrupting your business.
- Other processors have turned you down because of your high chargebacks or risk levels.
If other merchant processors have turned you down because of your high chargebacks or higher risk of chargebacks, you may think you’re out of luck. But the good news is that there are still options available to you.
A high-risk merchant account can provide the processing power you need to keep your business running smoothly, even if you have a higher-than-average risk level.
Chargebacks are always possible in any business, but with a high-risk merchant account, you can rest assured that your processor will work with you to minimize them.
So don’t give up on your dream of owning your own business just because other processors have turned you down. A high-risk merchant account may be just what you need to get started.
- You’re looking for a processor that offers specialized solutions like cryptocurrency processing or international payments.
A high-risk merchant account allows businesses to accept payments from high-risk customers, including those located in foreign countries or who wish to pay with cryptocurrency.
In addition, a high-risk merchant account can offer unique features and benefits that are not available with a traditional merchant account. For example, you may be able to get lower fees or access to special fraud protection services. If you’re looking for a processor that can offer you the flexibility and features you need, a high-risk merchant account may be the right solution for your business.
- Your current processor is charging you too much in fees each month.
As a business owner, you always look for ways to reduce expenses and increase profits. One area where you may be able to save money is in your credit card processing fees. If you’re currently using a traditional merchant account, you could pay too much in monthly fees.
A high-risk merchant account may be able to offer you a lower pricing rate, which can save you money in the long run.
- You need help managing your PCI compliance requirements.
As a merchant, you’re responsible for safeguarding your customers’ credit card information and ensuring that it is never compromised.
This process, known as PCI compliance, can seem daunting, but it is essential for protecting your business and your customers.
The good news is that you don’t have to go through this process alone. A high-risk merchant account can provide the support you need to ensure that your PCI compliance requirements are always met.
- You need a partner who can provide expert advice and support.
Opening a business is a risky proposition, and there are a lot of things that can go wrong.
One of the last things you want to worry about is whether or not your merchant account provider can give you the support you need to thrive.
That’s why it’s essential to find a high-risk merchant account provider who can offer you expert advice and support. The right provider will have a deep understanding of the challenges businesses face in your industry, and they’ll be able to offer tailored solutions to help you overcome those challenges.
In addition, they’ll be there to support you every step of the way, ensuring that you have the tools and resources you need to succeed.
What Are the Benefits of Having a High-Risk Merchant Account?
While some businesses may view being labeled as high risk as a negative, having a high-risk merchant account can be beneficial.
High-risk businesses often have difficulty securing traditional merchant accounts, so having a high-risk account can give them access to the payment processing services they need.
In addition, high-risk merchant accounts often come with higher transaction limits and lower fees than traditional accounts.
A high-risk merchant account can also offer enhanced features such as chargeback protection and fraud monitoring. These features can help to protect your business from unnecessary losses.
Overall, having a high-risk merchant account can benefit businesses that may have trouble qualifying for a traditional account.
How Do I Know if My High-Risk Merchant Account Has a Monthly Volume Limit?
Unfortunately, there’s no easy answer to this question. Every merchant account is different, and some providers may impose a volume cap on how much money you can process each month.
However, many high-risk merchant accounts do not have any monthly volume limits. This means you can process as much money as you want without worrying about exceeding limits.
So if you’re unsure whether your merchant account has a monthly volume limit, the best thing to do is to contact your provider and ask. They’ll be able to tell you whether or not there are any restrictions on your account.
How Can I Increase My Monthly Volume Limit for My High-Risk Merchant Account?
There are a few things that high-risk merchants can do to minimize the impact of monthly volume limits:
- It is crucial to keep accurate records of all transactions. This will help ensure you do not exceed your limit and incur unnecessary fees.
- You should try to spread your transactions out over the month. This will help avoid any service disruptions if you do happen to reach your limit.
- You should always contact your processor if you have questions or concerns about your account.
They will be able to help you understand your account terms and conditions and make sure that you’re compliant with all regulations.
What Happens if I Exceed My Monthly Volume Limit for My High-Risk Merchant Account?
Exceeding your monthly volume limit can have a few different consequences, depending on your merchant account agreement.
In some cases, you may simply be charged a higher rate per transaction. In other cases, your merchant account provider may suspend your account until you bring your volume back below the limit. And in extreme cases, your provider may terminate your account entirely.
If you exceed your monthly volume limit, it’s essential to contact your merchant account provider as soon as possible to avoid any negative consequences. By working with your provider, you can find a solution that meets your needs and helps you avoid any costly mistakes.
If I Go Over My Monthly Volume Limit, What Are My Options?
Some processors may allow you to increase your limit if you provide additional documentation or agree to higher fees.
If you need to process more than your monthly limit, you can do so by opening additional merchant accounts. You can also work with a payment gateway that allows you to split transactions across multiple processors. This can help you avoid processing issues and ensure that you can continue to grow your business.
Ultimately, the best solution for you will depend on your specific needs and situation. But if you need to process more than your monthly limit, there are options available to you.
How Can I Avoid Exceeding My Monthly Volume Limit for My High-Risk Merchant Account?
Merchants can exceed their monthly volume limit in a few different ways. The most common way is by processing too many transactions. Another way is by processing unusually large transactions. If a high-risk merchant processes either of these types of transactions, they may be flagged for review or even have their account frozen.
For these reasons, high-risk merchants must monitor their monthly volume limits.
If you think you might exceed your limit, contact your merchant processor and let them know in advance. This will allow them to take steps to protect their business while still allowing you to process your transactions.
How Bankcard Can Help
Struggling to get a merchant account?
We’re experts in high-risk merchant accounts and can help you get approved, even if other processors have said no. We work with businesses in a wide range of high-risk industries, so we know what it takes to stay approved.
With our help, you can reduce your chargeback ratio and prevent fraud from happening. This will save you time and money in the long run.
Contact us today to learn more about our high-risk merchant account options.