High Volume Merchant Account – Is It Worth To Have One? – Merchant Business

In our world today where internet is highly popular, a credit card processing is a must for business owners who want to stay in the market and stay competitive. Global merchant account is essential and it can be said that without this one can’t thrive in e-commerce. Unfortunately there are businesses that are categorized to be high risks. This is due to several reasons like fraud, high sales volume, and charge backs. High risk businesses may find it hard to avail of merchant account. Aside from increase in profits, having a global merchant account would make it easier for customers.There are businesses that are anticipating high volumes of sales. For this reason, it is hard to apply for credit card processing system. It can be said that credit card processors are hoping that merchants can have large amount of credit card transactions because they can get commission from the sales. Although this is the case, they are hesitant to approve a business owner who anticipates large volume of orders per month. The underlying reason for this is that they are foreseeing charge backs and a merchant may not have the money to cover this problem. If one business doesn’t have any history to show regarding their credit card processing, it is most likely due to charge backs that are experienced by this kind of venture.This is also true for internet business because of the big possibility of fraud transactions. E-commerce business is said to be high risk especially if they receive high volume of sales. In contrast, if one opens a retail business in traditional brick and mortar setting would be favorable to some providers. If an internet merchant has a good credit history, business owners can surely get an approval for credit card processing. They are said to be credit worthy so they are given a chance to avail of merchant account. However take note that if they receive high volume of sales, this could pose a problem.High volume merchant account that receives about $50,000 of monthly sales can be seen as high risks. Banks and providers need an assurance that the owner can pay for charge back fees. They would also investigate on how much money they have on their bank account. If the amounts are acceptable, chances are the high volume account will be given. It can be said that those with an established business have a high chance of acquiring this kind of account. Even if they receive higher volumes but they don’t have any charge backs, they are perfect for getting high volume merchant account.Of course there are some setbacks for gaining approval. One is the fact that credit processing provider can imposed a reserve funds that they control. This covers charges and other expenses. The money will be transferred to merchant’s bank account after a few months. There are some business owners who don’t like this idea. This can definitely affect their cash flow. Although this is the case, this is the only ways to have a merchant account. In the long run, having a credit card processing is worth it.The good news is there are quite a number of credit card companies that you can choose from that offer this kind of service. If your business receives high volume of credit card transactions, there are vendors that are willing to accept the risk. They also understand the background of business. One can even find a provider that offer a cheap rate for high risk merchant account. This is definitely a win-win situation for the merchant and the merchant account provider.