Merchant Account Limits – What You Need To Know!
[Please note: This article does not apply to merchants who obtain their merchant account through us. Our merchant accounts have no limits, so the issues addressed in the article will not arise.]
Many merchants are not mindful that their merchant accounts may have limits and if gross sales happen to have a speedy growth, like during the special holiday season, then the merchant account supplier could stop accepting any new transactions, until the following month, thus costing the merchant sales.
As strange as this may seem, merchant account providers shut down accounts if the total processed amount of money exceeds the business profile, which was set-up up during the initial application process and is commonly only higher thàn what the merchant initially estimated their monthly Credit Cards gross sales volume would be.
This may seem whacky that the Merchant Account Provider would prevent a business from having increased gross sales and growth, but the merchant account supplier is trying to crush any deceitful activity. When a business organization has a spike in gross sales that is much higher then their typical sales profile, it triggers suspicion that will put a freeze on a business merchant account, not allowing them to process credit card transactions till the next month and possibly even holding funds back as a reserve against possible future chargebacks.
All this can cause the business proprietor some serious cash flow problems.
To avert such scenarios happening to your business, you want to make sure you are mindful of your merchant account limits and then make sure they are set high enough to handle sales development and sale spikes cause by Christimas seasons. Finding out what your merchant account limit is should be as easy as making a phone call to your Merchant Account Provider. You can never have too much communication between you and your merchant account provider.
If you have a good merchant account broker then they should be able to help guide you through how to deal with your merchant account limits, merchant account profile, and how to change your profile limits as your business organization grows or has development spurts.