Is High Monthly Volume Risky?

This is a question that we get quite often. People are under the impression that higher volume equals more fees which should be good for the merchant account provider. So why do providers look at a higher monthly volume as risky compared to a low monthly volume?

It really comes down to whether the business is considered more likely to have chargebacks. If a merchant lacks the funds to cover the chargeback, the bank is responsible. For this reason, a higher volume is reviewed with extreme care and additional documents to back up your financial situation may be required.

If you run a high-risk business and are looking for a high monthly volume (which is anything over $100k in most books), it’s important to prepare for underwriting to ask for additional documents. The best response to this is to have the following documents prepared for this scenario:

  • 3 Months Processing Statements
  • 3 Months Bank Statements
  • Inventory Report
  • Business Plan
  • Sample Invoice / Receipts
  • Profit / Loss Statement
  • Balance Sheet

It may seem like a lot, but you’ll build a strong relationship with your provider if you are able to provide all of these documents in addition to the standard documents provided. Not only that, you’ll accelerate the time it takes to approve your high risk processing account.