When opening your first merchant account, chances are you’ll come across some aspects of the account that surprise you. For example, when you ask yourself, “Will my merchant account have a processing limit?” – the fact may shock you.
You probably want to know why this is the way it is. The reality is, merchant account providers take on risk with every new client they sign up. The risk is offset by a few factors: reviewing bank statements to prove the merchant has assets to back up potential chargebacks, past performance review, credit score review, and processing limit.
When a processing limit is set, it is to offset the risk of chargebacks. Chargebacks and other risks fall on the merchant, but if they are unable to pay the cost for these risks, it ultimately becomes a loss to the merchant account provider.
So how can you increase your processing limit?
Luckily for you, the process is pretty simple and automated. Your account manager or account representative is consistently reviewing transaction volume. When enough processing data comes through the system, proving that chargebacks and others risks are not an issue, we can go up to bat for you and get an increase to your monthly processing volume.
Our one piece of advice? Don’t wait until the last minute to open a merchant account if you know you need quite a bit of volume. Increases to processing volume can take a few days (or weeks of proof with processing) to sort out and approve.