Credit Card Processing Limit: Why You Shouldn’t Be Crossing It

As a business owner, risks always keep haunting your thoughts. There are areas where you’ve got to be more careful, and where averting risks is entirely in your hands. For instance never play around with your credit processing limit. Going out of your bounds makes you entitled for a heavy price.

Before discussing the drawbacks of crossing credit processing limit, let’s learn what the term implies. 

Credit Card Processing Limit

Whether you’re an ordinary business or classified as high risk, a merchant account provider will set limits on credit processing depending upon the business type and scale. The restriction is imposed to avoid fraud transaction and reduce chances of chargeback.

Factors such as average transactions and anticipated monthly sales volumes play an important role in determining this limit. High riskmerchants account providers generally allow a higher limit keeping high business volumes in mind, but will certainly charge you an extra buck for the services.

Why You Shouldn’t Cross The Processing Limit?

Whether your business crosses the processing limit by a single or multiple transactions; it is considered risky by high risk merchant account providers. As a result the service provider will accuse you with superfluous chargebacks that were preventable.

During seasonal high, crossing credit limits may seem the only way out, but the sudden increase in the average sales will be looked upon as abnormal and suspicious by the service provider. He may let you off with a single warning, or in case of exceeding limit frequently, freeze your high risk merchant account all together.