When you own a business, growth is the goal you are constantly seeking to achieve. However, along with greater size and expansion comes a whole new set of considerations.
Perhaps chief among them is whether you now need to get a high-volume merchant account.
What is a high-volume merchant account?
High-volume merchant accounts meet a particular need. They address issues specific to retailers marketing big-ticket items, and those with large amounts of credit card purchases per month.
Some businesses specialize in selling pricey, big-ticket items. Alternatively, they have significant credit card transaction volumes that are above and beyond the norm. This is where a special merchant account for high-volume businesses enters the picture, meeting a very real demand.
By obtaining one of these specialized accounts, companies can successfully process higher-than-average numbers of credit card transactions each day, without complications.
Attempting to accomplish the same task with a standard account can lead to extra scrutiny from the provider for suspected unusual activity, amount limits, and even account suspension.
Benefits of high-volume merchant accounts.
High-volume merchant accounts are important business assets. Benefits include helping to enhance growth, streamlining the payment process, scalability, improved security, and better cash flow.
High-volume merchant accounts can be a game-changer. These enterprise-level payment solutions pave the way for sustained growth since they help to bring about an uninterrupted and seamless payment stream even for companies processing huge amounts of credit cards each day.
Just as important, these specialized accounts come with added PCI compliance, security, and anti-fraud protocols built-in, leading to peace of mind for merchants and customers alike.
Additionally, they are designed to scale along with your business. Even if you have spikes in sales due to seasonal fluctuations or other factors, the account can pivot to accommodate fluctuations without any interruptions in service.
One common anxiety with high-volume transactions occurs when funds are not settled right away. High-volume merchant accounts frequently offer expedited funding options that help you to get your money quickly and predictably.
Disadvantages of high-volume merchant accounts.
If poorly managed, high-volume accounts can have their downsides. Disadvantages include a greater risk of fraud, increased chargebacks, higher fees, and delays in the approval process.
Not surprisingly, specialized payment processing for franchises and other businesses in the form of high-volume merchant accounts can have its disadvantages. This is particularly true if they are not managed and monitored properly.
Because of higher-than-normal, big-ticket item sales and transaction quantities, the risk of security issues is higher. The same is true of customer-generated funds reversal disputes known as chargebacks, which can cut into revenue if they happen too often.
Payment processing vendors frequently charge more to provide this heightened service, and these companies might delay the funds' approval process, resulting in budgeting complications.
Does your business need a high-volume merchant account?
Not every business that processes numerous transactions or many pieces of valuable merchandise requires a high-volume merchant account. Those who do tend to be companies with recurring service or membership fees, subscription-based retailers, and property management companies.
What exactly is considered to be high-volume? A business will need to process a minimum of $100,000 per month in credit card payments. If you meet this initial hard-and-fast requirement, you can apply for a high-volume merchant account. Your application will be scrutinized by underwriters to see if your company is the right fit for this kind of arrangement.
There are certain general types of businesses that are good candidates. These include those who charge recurring service fees, subscription or membership-based sellers, and property management companies that process monthly rental payments.
Other industries where high-volume merchant accounts are often required include debt collection and credit repair, vehicle sales, travel, high-end sellers, and ecommerce.
Key features to look for in a high-volume merchant account.
It is important to weigh your many options in this competitive arena before selecting a provider. Considerations include transaction volume, fee structure, security measures, integration compatibility, and customer support.
Choosing the right high-volume merchant account is important; after all, it will be a vital component that will either help or hinder your operations and budget for years to come. There are several important factors to keep in mind during this process.
Start by evaluating your current and expected transaction volume to be sure that the account will be compatible. Take a thorough look at their costs, including processing fees, monthly fees, chargeback costs, etc.
Demand that the company make security a high priority with top-tier anti-fraud measures, encryption, and PCI compliance. Look over your existing payment infrastructure to ensure that the new systems will be compatible.
Finally, assess the provider’s customer support for promptness, expertise, and responsiveness. When problems arise, excellent support can mean the difference between a fast recovery and a long period of sales interruptions.
For businesses that process large volumes of credit card transactions or many high-ticket items each month, high-volume merchant accounts can play a vital role in making seamless transactions possible.
Devoting time and attention to evaluating your company’s needs and goals can help you determine if this specialized financial service is right for you.
