Warning! Know Your Merchant Account Limits
I hope that the following article will help you to better understand Merchant Account Limits.
Many Merchants are usually not mindful that their merchant accounts have limits and if gross revenue happen to have a speedy growth, like during the holiday season, then the merchant account supplier could stop accepting any new transactions, until the following month, thus costing the business owner sales.
As strange as this may seem, merchant account providers close down accounts if the total processed amount exceeds the businesses profile, which was set-up up during the initial application process and is normally only higher then what the merchant initially estimated would be their monthly Credit Cards gross revenue volume would be.
I know this may seem silly that the Merchant Account Supplier would prevent a commercial enterprise from having increased gross revenue and growth, but the merchant account supplier is merely trying to circumvent any fraudulent activity. When a business organization has spike in gross revenue that is much higher then their typical sales profile, it triggers suspicion bots that will put a Freeze on a businesses merchant account not allowing them to process credit card transactions till the following month and perhaps even holding funds back as a reserve against possible future chargebacks.
All this can cause the business owner 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 holiday seasons. Finding out what your merchant account limit is should be as easy as devising a telephone 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 specialist/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 grows or has development spurts.
I hope the information above was useful. Thanks for reading! We have been helping Canadian Merchants get set-up with low cost merchant services for over five years. Click here to get your free copy of ‘The Critical Canadian Merchant Services Guide‘
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