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. 

Average monthly sales volume is a metric that processors usually consider when evaluating merchant risk. As a result, it can be a determining factor for merchant account approval or denial.

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. 

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