Common High Volume Business Types & The Best Ways to Support Them

It is common for businesses to support or process a high volume of sales. The common denominators for such businesses are often expertise and how long the business in question has been around.

However, it is not unusual for newer businesses to fall under the high-volume banner. While this is almost always a good thing, it can be overwhelming for certain business owners. These individuals must ensure that their business structure is sound enough to maintain growth and stay one step ahead of the competition.

Do high-volume business owners have the appropriate bandwidth to support a surfeit of transactions? Who can they turn to for support? While the answers may vary depending on industry, there are solutions to these inquiries. Read on to learn more about high-volume business types and how business owners can reduce risk.

What Makes Your Business High Volume?

First, let’s define what we mean when discussing a business falling into a “high-volume” category. That business might meet two criteria:

1. They must have a large quantity of volume-heavy single transactions.
2. They must also process a decent amount of smaller transactions.

Either way, these high payment volumes are processed via your business’s online payment gateway or virtual terminal. While the exact monthly amount will depend on the specific industry type, the average number is often upwards of tens of thousands per month. 

Businesses earn a monthly cap when they begin accepting debit and credit card transactions. The bank determines the cap itself according to several factors. The cap helps reduce the chances of merchant services fraud (in high-volume scenarios, the cap is often exceeded).

Thus, banks and card processing companies are understandably wary of high-volume businesses. One reason for this skepticism is the increased chance of fraud. However, merchants can increase the general volume through steady business growth and processing history. The bottom line is that you’ll ultimately want to bring your risk down to a manageable level to continue working with the bank.

Common High Volume Single-Transaction Businesses

Below are some examples of high-volume businesses that commonly see a flow of large single transactions in the thousands. This can also mean that the items available for purchase are either expensive or must be paid via lump sum:

For numerous reasons, a new business distinguished by high single transactions is a far greater risk to the supporting bank than a business that regularly processes smaller transactions. In this scenario, higher stakes equals not only higher expectations but also higher risk.

Chargebacks are an Issue

Sales of this caliber and price tag come with an inherent assumption of quality. If the quality isn’t there, the customer is far more likely to authorize a chargeback. This process is brought to the attention of the consumer’s bank when they want to get their money back without reaching out to the seller. Oftentimes, the customer will claim that the transaction is fraudulent; sometimes, this same thing occurs with an unresponsive seller. 

Suppose a customer contacts you after initiating a substantial sale requesting assistance or a refund. In that case, finding a solution that works for both parties is in your best interest. Remember, even issuing a full refund still looks better than having a chargeback on your record. Too many chargebacks can put your professional reputation at risk, even if the chargeback itself is fraudulent. Banks don’t want to deal with chargebacks, and an excess of them can lead to your merchant account being temporarily or permanently closed.

Don’t let this happen to you. Communicate with your customers, prioritize transparency, and find new ways to reduce your chargeback risk.

Common High Volume Cumulative-Transaction Businesses

Here, we have a list of businesses known for selling a large number of items, even if these items don’t come out to a significant cost from the customer’s end:

At the end of the day, some of these high-volume businesses do the same number of transactions as their prominent, single-transaction contemporaries. The banks will determine your monthly cap with assistance from processors. Remember, both banks and processors will be instrumental to your professional success in the long run.

The possibility of chargebacks is a fundamental variable for any business, regardless of volume. However, with businesses steeped in high-volume transactions, chargebacks are less of an obstacle. The reason for this primarily comes down to the percentage of chargebacks used to determine if an account needs to be paused or shut down. Due to the high volume of different types of transactions, the percentage becomes diluted and, therefore, less of a long-term problem. For these types of businesses, the real risk is the threat of fraud.

Fraud is an Issue

The unfortunate fact of the matter is that online fraud is a rampant issue. It is easy to commit and deceptively challenging to track. Banks understand this as well as anyone else. Their job is to find methods of reducing fraud while creating space for legitimate businesses to thrive.

If your business is high-volume, it can be safe to assume it is also high-risk. This means your business will be intensely scrutinized for signs of fraud, even if none exist. 

The solution? Stay vigilant. Implement accessible ways of vetting our customers. When all else fails, keep a close eye on your accounts.

Securing Your Payment Processing Solution

A high-risk merchant account is a must for your business to scale effectively. Maintaining such an account will allow for greater flexibility with your monthly volume limit, in addition to maintaining enhanced PCI compliance and a reduced possibility of merchant services fraud.

Be sure to look for high-risk payment processors that:

When you find a partner who can support you, you’ll realize that running a high-volume business does not have to be an inherently stressful process. This is also true for maintaining a high-volume merchant account, which can be supported via a high-risk payment gateway provider or bank. Don’t settle for less than the best in merchant services. Trust us: in the long run, it makes a difference.

Be one step ahead. Open your doors without worrying about how you’ll accept payments.

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