I thought that I would provide another wake up call to online merchants who accept credit cards, debit cards, or any type of electronic payment.  As a reminder, beginning in 2011, merchant account providers are obligated to report their clients' gross income derived from their online activity.  Some business folks are not concerned, confident that their record-keeping is completely accurate.  Others are uneasy, declaring that Big Brother's reach is becoming too invasive, and that the reporting of gross income does not nearly reflect costs and end profit.   

All merchants need to indicate their anticipated monthly credit card processing volume, average and highest ticket amounts on an application, and process within these limits.  It's always best to overestimate these figures because if you exceed the highest ticket amount, for example, the transaction will red flag and the processor will hold funds until the authenticity of the transaction is confirmed.  The processor will also ensure that you have ample funds in the bank account to cover a possible chargeback or dispute. 

If you've underestimated the monthly, average, and/or highest ticket amounts, then you can request a merchant limit increase.  Requesting such an increase may or may not be granted so it's important to know the criteria that the risk and underwriting departments will use when making their determination.