High Volume Merchant Account
A high volume merchant account enables the growth of your online business to be unlimited. With dollar volume being the most common metric in the industry, you can process an extremely high volume of monthly transactions with little or no upfront capital investment. Or you could process very large, high ticket items such as holiday gift cards or large volumes of electronic gifts depending on agreed upon approval conditions and underwriting performed before the transaction taking place. You can also process credit cards and debit cards with high volumes in either case. However, the most attractive option for this growing segment of the industry is the ability to do all these with almost zero start up cost. High volume merchants are able to save thousands of dollars on each month in processing fees by using a processor that offers multiple payment processors instead of one. Processing one payment processor simplifies the application process and permits the high volume merchant account provider to have payment processors at the local level and still process all Visa/MasterCard/American Express and Discover cards that they process in any of the geographic areas served by their payment processors. Multiple payment processors allow for an increase in the number of gateway clicks that are processed which further improves the speed and accuracy of the total transaction. This also gives merchants an opportunity to add new payment methods to their merchant accounts such as instant online check payments, which are faster and much more secure than check cashing out methods and greatly reduce fraud.
With a high volume merchant account provider who uses one processor per location, merchants are provided with a single gateway through which all the Visa and MasterCard transactions occur in terms of both credit card and debit card transactions. One great benefit of using a merchant bank that processes transactions from these types of cards is that you only have to maintain a single gateway, rather than multiple connections to different payment processors. The merchant bank typically provides a single point of contact for you and the customer for questions, troubleshooting, upgrades or changes to policies and procedures. You also have access to multiple third party underwriters and processing agents that can provide a higher level of service than what you would achieve by utilizing a single point of service from a merchant account provider with a high volume merchant account.
advantages of a high volume merchant account
Another advantage of a merchant bank that processes with a high volume merchant account is that they provide excellent customer service. Fraudulent transactions are often the cause of poor customer service ratings and you want to make sure that your merchant bank is providing excellent customer service. When the merchant bank processes fraudulent transactions, they take the time to investigate the transaction, verify the customer’s information, run credit checks, and check other factors that may contribute to the fraudulent transactions. Once these factors are analyzed, the merchant services department will notify the customer that the transaction failed due to a number of reasons and the transaction was closed. Merchant processing volume limits are another factor to consider when selecting a merchant service provider. High volume accounts generally have lower limits to prevent over processing fees. You want to avoid processing fees as much as possible; however, you do not want to allow the amount of processing fees to exceed your profit margins. A good rule of thumb is that you want to allow a minimal processing fee to cover your overhead costs.
One more advantage of high volume merchant accounts is that they offer higher rates to merchants who ship small and large ticket items. Even though the cost per item is typically lower with these accounts, your customers usually enjoy a higher rate of shipping discounts when you process with these larger ticket items. This increases your profitability because you no longer need to pay the credit card processor the standard retail rate to send a small ticket item. Instead, you pay a processing fee to the processing bank which then divides the cost between the customer and you. Since these items rarely incur any additional charges, you still save on processing fees. Many small business owners do not take advantage of this fact because they believe that they can offset the cost of this type of account using other methods of reducing costs.