Velocity limitsTransaction limits when accepting contributions or payments online. are used by your merchant account provider (both credit/debit cards and eChecks) to assist in fraud prevention and detection. They show your provider what your typical receipts will look like. This allows them to effectively monitor your transactions for suspicious activity.
When you apply for a merchant account, you will be asked a series of questions regarding your transactions. You will be asked about the number of transaction you expect to receive per day, the highest single item you expect to receive, as well as the most income you expect to receive on a single day. These questions are asked for your protection as well as the protection of your vendor.
When estimating your velocity limits, you will want to be generous, without being outrageous. You will be asked to provide financial information, typically in the form of a current balance sheet and a recent Profit & Loss statement. The risk management department will review your velocity limit requests and compare them to the financial information you provide. If your financial information can support your requests, you are more likely to receive limits closer to your original request.
Note: A transaction that exceeds any of your velocity limits will either be directly declined, or reviewed by the risk management department. You should ask your merchant account provider how they handle transactions that exceed velocity limits.
Your velocity limit can become a hindrance during holiday and end of year giving. If you have contributors who typically wait and give you a lump sum contribution that will exceed your velocity limits, the transaction will be declined. To avoid this situation, contact your merchant account provider to apply for a velocity limit increase. If you process eChecks through ProfitStars, please email FTpaymentsupport@ACTIVENetwork.com. If you process credit/debits cards, please contact your merchant account provider directly.