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8 ways to Increase Merchant Account Limits

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What is a Merchant Account Limit?

A merchant account limit refers to the maximum amount of money a business can process in credit card transactions within a specified period, typically on a daily, weekly, or monthly basis. This limit is determined by the payment processor or merchant services provider that facilitates credit card transactions for the business.

Merchant account limits are established based on various factors, including the business’s processing history, sales volume, industry risk factors, and financial stability. Exceeding these limits can result in transaction processing disruptions, delayed funds, or even account suspension.

Businesses may seek to increase their merchant account limits to accommodate growth, handle higher transaction volumes, or capitalize on expanded opportunities. However, obtaining approval for limit increases often requires demonstrating a solid processing history, financial stability, and a clear rationale for the increase to the payment processor.

How to Increase Your Business's Merchant Account Processing Limits: A Guide

Looking to boost your companies merchant account limits? It’s a reasonable goal for any business that would like to, or needs to, handle more transactions and grow its revenue streams. So, where do you start? To begin with, take a look at your transaction history and think about where your business has been and where it is headed. Are you expecting a surge in sales? Planning to expand into new markets? Understanding your needs is key to making a solid case to your payment processor.

After you have organized your history and goals, contact your payment processor or merchant services provider. Let them know what your plans are with your business—talk about your growth projections, why you need those higher limits, and how you’ll handle the increased volume. Though it’s never really fun to put together, things like financial statements and sales forecasts can help back up your request and show that you’re a reliable bet for handling higher transactions volumes and increased merchant account limits. So, keep the lines of communication open and show them you’re serious about taking your business to the next level. With a bit of planning and some good faith conversation, you’ll be on your way to increasing your merchant account limits and setting your business up for success. Below is a more detailed guide on how you can get higher payment processing limits.

1. Strengthen Your Processing History & Increase Your Merchant Account Limit

Building a strong processing history sets a strong foundation for securing higher merchant account limits. If you haven’t already, start by implementing a plan to maintain a low chargeback ratio—it shows processors that you are serious about your credibility and demonstrates confidence in your product or service. High chargeback rates can raise red flags and make payment processors hesitant to increase your merchant account limits. By keeping chargebacks to a minimum, you’re signaling that your business is trustworthy and operates with integrity.

As the old adage goes, consistency is key. If possible, show steady credit card transaction volume growth that can reflect your business’s reliability and predictability as you increase revenues. When processors see a consistent flow of transactions or predictable growth in revenue, it reassures them that you’re a good bet for handling increased volumes. Plus, it demonstrates to processors that your business isn’t just holding steady but has the potential to grow. So, keep those transactions flowing smoothly and watch as your processing history becomes a powerful asset as you approach payment processors for higher merchant account limits.

2. Improve Your Financial Health to Earn Higher Payment Processing Limits

The financial health of your business is a significant factor that influences credit card processors’ perception of your reliability and risk level. A strong credit score and healthy bank reserves serve as potent indicators of your business’s stability and ability to fulfill financial obligations. This means that investing efforts into enhancing your financial standing can substantially improve your case for higher merchant account transaction limits.

One key aspect of improving your financial health is maintaining a stellar credit score. A good credit score not only shows you have a long history of responsible financial management but also instills confidence in creditors and payment processors alike. If you need to enhance your credit score, focus on timely bill payments, reducing debt, and managing credit accounts judiciously. Consistent and disciplined financial practices will contribute to a positive credit history, positioning your business as a desirable partner for credit card processors. If you have poor or bad credit, Durango Merchant Services has a lot of experience helping businesses secure a merchant account with bad credit.

In addition to a strong credit score, building and maintaining bank reserves further strengthens your business’s financial stability. Adequate reserves provide a buffer against unforeseen expenses and cash flow fluctuations, and show you are prudent when planning for the unknown and can better weather financial challenges. By actively increasing your bank reserves, you not only enhance your financial resilience but also provide tangible evidence of your capacity to handle higher payment transaction volumes responsibly.

3. Engage with Your Processor to Increase Merchant Account Limits

Establishing open lines of communication with your payment processor or merchant services provider is important when trying to increase your merchant account limits. Schedule a dedicated meeting to discuss your business’s growth trajectory and how higher limits can support your expansion plans. This dialogue allows you to convey the specifics of your operational needs, market opportunities, and strategic objectives directly to your processor, promoting a collaborative partnership that can yield mutually beneficial outcomes. By aligning your goals with your processor’s understanding of your business’s needs, you can effectively make the case for higher limits with confidence and clarity.

4. Evaluate Your Merchant Account

Take a close look at your current merchant account type. As businesses grow, their needs change. You might find that your current account no longer serves your best interests. If necessary, apply for an account upgrade or consider switching to an account that better matches your needs as they change. Durango Merchant Services has helped thousands of merchants process payments and wants to be there to help you reach your goals. When it is a high risk merchant account, eCheck Payment processing, Cryptocurrency processing or Standard retail processing, we have you covered.

5. Implement Fraud Prevention Measures

Protecting against fraudulent transactions is one of the primary challenges for businesses. By integrating advanced security tools such as 3D Secure, Visa’s chargeback monitoring program, Address Verification Service (AVS), and Card Verification Value (CVV) checks, you can significantly reduce the risk of unauthorized transactions and protect your business’s financial integrity. These fraud prevention measures not only improve transaction security but can also inspire confidence in payment processors, positioning your business as a trusted partner in combating fraud.

Another helpful step a business can take is investing in ongoing education and training for your team on fraud detection and prevention best practices. The more you learn about implementing cutting edge payment gateway fraud prevention technology the easier it is to show your processor that you are committed to maintaining a secure payment environment. If your staff has the knowledge and skills to identify suspicious activity and respond appropriately, it creates a stronger wall to protect against fraud, helping your business and your customers from unnecessary losses and headaches. Low fraud rates and implementation of top notch security helps you get higher merchant account limits.

6. Diversify Processing Relationships to Increase Payment Processing Limits

Avoiding reliance on a single processor is a good business practice. When a company builds relationships with multiple processors, it allows you to expand your merchant account limits and also creates a safety net in case of any unforeseen issues with your primary payment processor. A diversified approach allows your business to manage fluctuations in transaction volumes and changing market conditions with greater ease.

Another benefit of diversifying your processing relationships is that it improves your negotiating power and provides you with a broader range of options to support your business’s growth. It also allows you to explore different pricing structures, service offerings, and value-added features, so you can tailor your processing arrangements to align more closely with your changing needs and objectives. By diversifying your processing relationships, you can optimize your merchant account capabilities, mitigate risks, and position your business for higher merchant account limits.

7. Regular Monitoring and Reassessment

Implementing a routine of regular reassessment of your merchant account and payment gateway enables you to stay informed about shifts in market dynamics, alterations in consumer behavior, and advancements in payment processing technologies. By remaining updated on any changes in payment processor policies or the introduction of new services that could potentially benefit your business, you allow yourself to make well-informed decisions that align with your strategic objectives. A proactive approach to managing your merchant account ensures that your processing capabilities remain finely tuned to support your current operational requirements and positions you to anticipate and adapt to future growth opportunities, which helps make the case for higher payment processing transaction limits.

8. Prepare and Submit Documentation

When you’re ready to request an increase, gather all necessary documentation, including recent financial statements and processing history records. Write a formal request outlining your need for higher merchant account limits, supported by evidence of your business’s stability and growth potential. If you need any help or guidance putting together your application to increase your merchant account limits, then please reach out to your account manager or our sales team to find out how we can help you.

Follow Up After Requesting Higher Merchant Account Limits

Persistence pays off. After submitting your request, schedule a follow-up to discuss it. Be prepared to provide additional information or clarification if needed. This shows your processor that you’re serious about your request and ready to work with them to find a solution if there are any bumps in the road. Increasing your credit card processing limits is more than a logistical step; it’s a strategic move that supports your business’s growth. We hope that with this guide on the steps to higher merchant account limits, you can prepare your business to handle increased transaction volumes, so you can capitalize on new opportunities as they arise.
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Durango Merchant Service Can Help Increase Merchant Account Limits

Durango Merchant Services account managers all have a decade or more of experience in helping secure payment processing for tens of thousands of clients. If you are an existing or potential new client we invite you to talk to your account manager to help develop a plan to make sure that merchant account transaction limits don’t impede your ability to grow. Fill out a form or give us a call to see how we may be able to help you processing more payments.
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