Average Monthly Transaction Volume
A merchant’s average monthly transaction volume is calculated as the total number of transactions 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 transaction volume is considered to be a risk because every sale made could potentially become a chargeback — which the processor could be liable for. In order to keep risk in check, some merchant accounts will have a limit set for maximum monthly transaction volume. Also, processors may require a merchant account reserve to offset any potential liability.