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High Volume Merchant Accounts
By: Shane Penrod, Sat Sep 23rd, 2006
As your business continues to grow and customers buy more goods
and services, you may want to consider joining those who are
applying for high volume merchant accounts. When you are
approved for a high volume account, you can get good prices on
mid- and non-qualified sales, along with debit processing,
monthly statement fees, and additional expenses. The greater
your volume of business, the better deals you may be eligible
for when working with financial institutions or companies who
can provide this valuable service.
The way it works is that you apply for a merchant account at a
bank that offers great pricing and low-cost fees. These can be
packaged in a variety of ways. For example, you may want to pay
a few cents for each transaction, but if you experience
high-volume sales, this could become a costly option. The other
route to go is to pay a low monthly overall percentage, often
between 1% and 2%, for the entire sales volume you experience
via your credit card and debit-processing program. High volume
merchant accounts can save you money over time because you will
be able to pay smaller fees for each transaction or get a better
rate for the amount of profit that you bring in.
If you currently have a sizable volume of sales and perhaps
expect to do more in the near future, keep in mind that high
volume merchant accounts have helped others in your position.
Your customers will appreciate the ease of using
up-to-the-minute technology for processing their orders with
your company. And your employees likewise will be happy to turn
their attention to other tasks within the organization. Your
company may even see profit increases within the first few
months as the word spreads about your merchant account status
and credit card processing capabilities.
You can apply for high volume merchant accounts through your
local bank or a preferred financial institution that can process
Visa and MasterCard credit accounts. Your application should
demonstrate that your company is not involved in illegal or
shady dealings that the underwriters are unlikely to approve,
including gambling, pornography, pharmaceutical offerings, and
telemarketing. Then you will want to be able to show that your
company is fiscally solvent and maintains a solid credit
history. You might include documentation to support the notion
that your company will be able to pay merchant account fees in a
timely manner.
In upgrading your business to accommodate e-commerce solutions
like credit card processors through a merchant account, be sure
to calculate in advance the type of fees or expenses that will
be affiliated with this move. You don't want to start something
you can't finish, so project related expenditures for the coming
year to see how they fit with your company budget. If it appears
a credit card processor or wireless unit will tax your operating
budget, you may be able to take out a low-interest loan to fund
the initial start-up expenses. Discuss this option and any other
questions you might have with the bank representative who
manages applications for high volume merchant accounts.
About the author:
Shane Penrod is the founder of Merchant-Acount-Quotes.com
Specializing in allowing merchants the ability to shop and
compare multiple quotes from national merchant account
providers. For free quotes on merchant account rates and fees,
please go to http://www.merchant-account-quotes.com
