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What Are The Pros And Cons Of A High Volume Merchant Account?

by TeamDF
Merchant Account

Businesses, big or small, need the appropriate payment management to succeed among hundreds of competitors. But sticking with old payment methods might cost the firm many potential customers. high volume merchant accounts are perfect for such businesses to expand their user network.

The merchant account ensures that users who prefer card payments are not left out while purchasing from the business. So read ahead to know the advantages and disadvantages of having a high-volume merchant account.

What Is A High Volume Merchant Account?

A high-volume merchant account is specifically for businesses that exceed $100,000 in sales monthly. If they process the above amount, they would be eligible for a high-volume account. Since their sales figures are so high, the credit processing company must provide the necessary services.

Due to such high sale volumes, sometimes these accounts can also be high-risk merchant accounts. Risky businesses like Kratom, CBD, and more have high-volume accounts, which may also be high-risk merchant accounts.

Though both terms are not the same, they often come together for many businesses. If you process over $100,000 monthly, your business needs a high-volume account. If you have a regular account- the service provider might not accept the processing since it is unfit for a standard one.

How Are High Volume Merchant Accounts Advantageous?

You might consider buying credit processing services if your business fits in the high volume category. But to buy something for your business, you must weigh the pros and cons in the long run. High-volume merchant accounts have merits and demerits, though users state that the benefits overtake any demerits.

Here are some benefits of having a high-volume merchant account for your business:

Larger Customer Base

The best feature of credit card processing is the user base expansion of the business. Nowadays, hardly anyone uses cash or cheques to make payments online or in person. Most people prefer using credit or debit cards due to their sheer convenience. With a high-volume merchant account, you can expand your user base exponentially. More payment options will give way to more potential users coming to your business and making purchases.

Quick And Easy Transactions

When people hear about credit processing and how it takes place, they wonder if it is too tedious. The multiple-step process of payment and approval seems like it would take hours. But you would be surprised to know that the process happens within a few seconds. All the steps happen within a few seconds if the payment is valid and no problem appears. It would ensure that customers do not have to wait too long while making transactions. 

Lower Risk Of Fraudulent Transactions

Frauds and chargebacks are usual with credit and debit transactions, as bothersome as they might be. Even if you manage your business well and ensure optimum quality products or services, chargebacks are inevitable for many reasons. But when you have a merchant account, the service provider will approve or decline the transactions. It can save you time and money dealing with fraud and provide better support in such incidents. 

Perfect For Online Or Retail Stores

While in-person payments are slightly more credible generally, online payments come with many risks. Business owners who manage their activities from an online store need further protection and management for their money. Thankfully, these high-volume merchant accounts are perfectly compatible with online and store businesses. It can ensure smooth, fast, and safe transactions from anywhere.

Assistance With Chargebacks

Chargebacks are when a user has bought your goods or services but wants a refund for some reason. Such chargebacks can be frequent with high-volume businesses because the money flow is higher. They are inevitable, but it does help to have guided assistance while dealing with such chargebacks. Sometimes, the service providers may help you prevent chargebacks entirely if possible. Either way, having a team of experts on your side can prevent you from losing precious time and money.

Possibility Of Making Large Transactions 

Large transactions happen throughout the year if your business processes more money. Sometimes, making such huge transactions can come with many problems. In some cases, the transactions don’t go through at all. In other cases, you have many limits on your transfers. However, a high-volume merchant account allows you to do unlimited transactions. Even though you make more transactions, you don’t have to worry about their safety.

What Are The Disadvantages Of A High Volume Merchant Account?

With many benefits come some drawbacks of having a high-volume merchant account. Instead of considering their disadvantages, see them as a necessary cost for availing of given benefits. You can see them for yourself and judge if there are indeed mere cons than pros to get the account.

Here are some cons of having a high-volume merchant account for your business:

Higher Rates

Since you are availing of much more complex services with greater risk, the rates you must pay are higher than regular. Regular merchant accounts cost lower than high-volume ones since they are less complex and smaller. However, the extra sum is essential to provide better and more fitting services. The cost might seem hefty initially, but considering the benefits, it is worth paying.

Detailed Application Process

Before you acquire a high-volume merchant account, you must apply to the service provider. They take some time to process that information and assess your request. Then they either accept or reject your request for your merchant account. The process takes some time and effort before you acquire the merchant account. But considering that it gives you better payment processing, it is a necessary investment.


Appropriate credit processing is an essential part of any business. You require quick and safe payment processing to expand your business rapidly. Even if you’re a big business dealing with higher sums, your need for payment processing is no less.

High-volume merchant accounts are the best solutions for such needs. The service providers specifically shaped plans for businesses that process heftier sums. They will ensure that your business can accept most payment methods while protecting it from fraud and excess chargebacks.

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