Choosing The Right Merchant Account Monthly Volume

When applying for a merchant account, your account provider will ask for an estimated monthly processing volume. The is the dollar value of Visa and MasterCard sales that are processed by a merchant per month.

Your monthly processing volume is determined by your average ticket value, high ticket value, and your business type. The average and high ticket sizes refer to your average sales transaction value and your highest sales transaction value within a month.

It is important that you choose an accurate processing volume. Otherwise, you may encounter issues with your credit card processor.

Whether you have a new business or you’re opening a merchant account for an existing business, consider these factors when choosing your merchant account monthly volume.

Monthly Volume for Your New Business       

If you are starting a new business, determining your monthly volume can be difficult presuming you haven’t made any sales. Although you are unable to make an exact estimate, it is recommended that you make an educated guess based off potential.

We suggest you choose a higher volume rather than a low one. An account with a lower processing volume has an increased risk of exceeding its monthly limit. A higher processing volume diminishes that risk.

How You Should Settle on an Amount

Settling on an amount with your merchant provider should be a collaborative decision. It is important to find a flexible merchant account provider who can adjust your processing volume if you are going to exceed your sales volume for any given month. That way, you never have to worry about your processing volume being capped in the middle of a high sales month!

Documents that Help Increase Initial Volume

Additional documentation may be required so the provider can assure your account is financially accountable. You may be asked to provide bank statements from the last three months, personal or business tax returns from the last year, or a cross corporate guarantee to prove your account will be able to handle chargebacks and fraud.

High Volume Merchant Accounts

If your account has a high monthly volume, there is an increased chance of chargebacks due to the higher sales transaction volumes of the business. Proper documentation including bank statements and tax returns are required for high volume accounts to ensure the account is capable of handling high volume sales.