While getting a bank account as a general person is as simple as signing a few documents and walking away, obtaining a merchant account can be much more complex. This is especially the case if you process a high volume of payments with your business operation. Here is a look at some of the general questions you may have as a merchant when seeking a high-volume merchant account.
What processed amount is considered high volume as a merchant?
Every merchant account provider can view "high volume" as a different transaction amount, and some do not even look at transaction amounts but the number of transactions. For example, you may find one merchant account provider that states that anything over $100,000 in transactional amounts per month (cumulatively) is considered high volume. Another provider may deem any account that has over 5,000 transactions per month as a high-volume account. This is why it is a good idea to talk to several providers, ask about their definitions, and compare that to your needs as a business owner.
How does a high-volume account differ from a high-risk merchant account?
While commonly misconstrued as the same, high-volume and high-risk merchant accounts are actually very different even though they may have a few similarities. High-volume merchant accounts are related to the volume of transactions, either in price or general numbers. However, a high-risk merchant account is related to a type of business that could be considered high-risk. For example, a merchant that uses an account for student loan assistance or short-term loans may be considered a high-risk merchant.
What do you have to do in order to get a high-volume merchant account?
Again, requirements can differ depending on the account provider. Nevertheless, there tend to be a few commonalities when it comes to qualifications, such as:
- providing proof that you are offering a legitimate service or product
- providing proof of your most recent tax returns
- providing information about your business operation
- submitting to business address verification
Some merchant account providers may also require that you submit to a credit check, especially those that offer adjustable rates according to your credit history.
Will there be a processing limit with a high-volume merchant account?
There definitely can be a processing limit with a high-volume account, but your limits are likely to be far higher than what they would be with an ordinary account. It is best to get detailed information about processing limits in advance so you do not run into any unexpected issues as your business grows.
If you have more questions about high volume accounts, contact a company near you.