Average Monthly Sales Volume
A merchant’s average monthly sales volume is calculated as the total value of sales processed in a year divided by 12 months. If a merchant is launching a new business and doesn’t have any processing history, the merchant may be asked to provide an estimate.
High sales volume is considered to be a risk because every dollar processed is a dollar of potential chargeback liability for the processor. In order to keep risk in check, some merchant accounts will have a limit set for maximum monthly sales volume. Also, processors may require a merchant account reserve to offset any potential liability.