A high volume merchant account is exactly what it sounds like. That is, a payment processing account that accommodates high volume transaction throughput. But, like most of the payment processing industry, these accounts are sub-categorized into segments depending upon assessment of payment processing risk. A high volume merchant account for standard industry classifications has different payment processing criteria than high risk, high volume merchant account processing. And a company in a standard industry classification experiencing rapid growth can also easily be thrown into a high risk merchant account category.

There are literally thousands of sales agents hungrily prospecting for High Volume Merchant Accounts. For businesses in traditional industry classifications, payment processing over $100,000 per month is targeted by every new sales agent. Therefore, companies with high volume merchant accounts are constantly bombarded by calls from agents offering ever-lower payment processing rates. Competition among merchant account independent sales organizations is intense. Profit margins within the industry are continuing a downward squeeze. High volume merchant accounts in non-risk categories are a commodity driven by demands for rock-bottom prices. Interchange plus pricing is the norm. High volume merchant accounts with multi-million dollar monthly throughput can negotiate rates of pennies per transaction.

The market is different for these types of accounts in the high risk category. For most high risk merchant account providers, $100,000 per month is not considered a high volume merchant account. For these providers this account is one that processes over $1 million per month. These accounts are more challenging to place because there are fewer acquiring banks that will underwrite high risk accounts. It’s economics 101…supply and demand. The scarcer the resource, the higher the market value.

Therefore, it is unlikely that this account can expect the same interchange plus pricing schedule that is available to high volume merchant accounts in standard industry classification. That’s not to say that this account in a high risk category cannot expect to receive good rates. In fact, many high risk providers specialize in high volume merchant accounts and offer keenly competitive rates. One of the problems for merchants needing these type of accounts but are classified as high risk is finding the right professionals who can help establish the correct payment processing accounts. Sadly, this account industry has its share of unscrupulous agents who take unfair advantage of merchants. Merchants need to be careful to protect themselves.

There are some excellent agents who are consummate professionals and are invaluable assets in establishing and diversifying high risk, High Volume Merchant Accounts. Wise merchants will spend the necessary and effort to find an agent who is experienced, fair, and trust-worthy. A good agent with specialized knowledge, experience and the right banking connections is amazingly helpful, ultimately saving a merchant time and money. Any company that has high volume merchant accounts will find it prudent to have more than one account. Regardless merchant account risk category, diversification of payment processing is simply good business sense. Redundancy protects business operations, ensures payment processing continuity and safeguards revenues.