A HIGH VOLUME MERCHANT ACCOUNT –HANDLE COMPLICATIONS DUE TO HAVING MORE SALES

Merchants Want High Volume Of Sales
Any merchant would want to see his or her business grow voluminously and profits to increase astronomically. Such state of affairs is directly proportional and consequential of high volume of sales. Hence, you must be wondering why the title would even suggest that the high volume could be a disadvantage. It sounds like such a ridiculous notion, doesn’t it?

Merchant Account Providers Benefit From High Volume Of Sales
Merchant account providers make most of their earnings by charging discount rates and transaction fees on every sale. If your volume of sales increases, so will their revenue. Hence, they should be rejoicing if you estimate a large number of sales every month.

However...
Problem 1:
Credit card fraud is very easy to commit. All someone needs is the details of a credit card or a stolen credit card in hand to purchase all he or she wants even before the credit card owner realizes that something is wrong.

Problem 2:
Sometimes, the products purchased by customers may not be delivered to them as promised by the merchants. At other times, the products / services purchased may not satisfy the customers.

Both the above-mentioned problems can set off the credit card owner or the unhappy customer to dispute the credit card sale and request a refund. At such instances, the merchant account providers often have to first return the money from their own funds. Of course, they hope to collect this money from the merchants eventually but not all merchants are able to return the money.

Hence, in order to protect themselves against huge losses incurred due to chargebacks and fraud, merchant account providers do not provide merchant accounts to merchants who predict high volume of sales. To them, a high volume of sales equate to a high risk of chargebacks and fraud.

This is why a high volume of sales can seem to be a disadvantage, especially when looking for a merchant account.

Not Regular But Specialized High Volume Merchant Accounts
Given the reluctance of merchant account providers to offer merchants with high volume of sales an account, your application for one may be often rejected. First of all, instead of applying for regular merchant accounts, apply for high volume merchant accounts.

High volume merchant accounts are specialized in handling businesses that churn large number of sales. They have departments dedicated to handling fraud or chargeback cases.

They also provide credit card processing solutions that are more suitable for large number of sales. They support a variety of currencies and hence your business is allowed to grow globally with ease.

The best part is that high volume merchant account providers to do set limits on volume of sales. Hence, you enjoy uninterrupted service even if you bring in more than the forecasted number of sales at no extra charges (ensure this before signing any contract with your provider).

Features Of Ventures That Produce High Volume of Sales That May Be Considered
In order to ensure the success of your application for a high volume merchant account, let us understand the various features that the account providers may look into before accepting your application.

Age of Business
If you are an established business, it is easier for the merchant account provider to check on your credit history as well as the number of chargebacks. You stand a higher chance of securing a high volume merchant account if you have good credit history and no or only a few chargebacks.

If yours is a new business and you request for a high volume merchant account, you are likely to be turned down by many merchant account providers. The one piece of information that may help get you that merchant account is a good credit history. Hence if you have it, use it.

Card-Present Merchant Account VS Card-Not-Present Merchant Account
If yours is a card-present merchant account, you stand more chances of being approved for the high volume merchant account.

However if your business requires a card-not-present merchant account as online businesses do, you may not get a high volume merchant account easily. The fact that the credit card need not be physically present for the transaction to be processed increases the chances of fraud.

Hence, even if you are a new business owner, you may get a high volume merchant account more easily if you own a retail business that requires the credit card to be physically present for the sale to be processed.

Ticket
Naturally, you stand a higher chance of getting a high volume merchant account if your average ticket size is less than a couple of hundred dollars.

Bank Account
The merchant account provider may check your bank balance before approving your high volume merchant account application. If your balance seems substantial and enough to cover any chargeback or fraud that may arise, you may be granted the merchant account. However, if your expected monthly sales volume is way too high as compared to your bank balance, you may face trouble getting the account.
You can now understand why having large number of sales may cause some complications for you when it comes to getting a merchant account.

Although a high volume merchant account is a better option for you than a regular merchant account, it does not guarantee a smooth approval process. Learn ways to prevent chargebacks and credit card fraud. This will help you build a reliable, healthy business record. While it is true you may face much problems getting a merchant account if you are just starting on your business, the good business record you build will it much easier for you to get a good, affordable merchant account in the future.

For further reading : http://www.merchantaccounts.cn/AdultMerchantAccount/Highvolume_Merchant.html
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