Why Large Transactions Sometimes Get Held by Risk

Most businesses or practices process a steady flow of patient payments every day.

But every now and then, a larger-than-normal transaction comes through.

In the case of dentists, maybe it is:

A $10,000 veneer case
A full-mouth implant case
A cosmetic dentistry treatment plan
An oral surgery payment
A large patient financing payoff
A family paying for multiple procedures at once

The card may approve.

The receipt may print.

The customer or patient may leave happy.

But then the processor’s risk department may temporarily hold the funds for review.

Why does this happen?

When your merchant account is approved, the processor sets expectations for your account. Most high tickets start at $2,000 and you can work your way up from there.

These usually include:

Average ticket size
What your normal transaction looks like.
High ticket amount
The largest transaction the processor expects you to run.
Monthly processing volume
How much total card volume your business or practice is expected to process each month.
Industry type
Dental, medical, cosmetic, retail, automotive, service business, etc.
Processing history
How long you have been processing and what your normal patterns look like.

So, when a business that usually runs $300, $800, or $1,500 transactions suddenly runs a $10,000 or $15,000 transaction, the processor’s system may flag it.

That does not mean you did anything wrong.

It usually means the transaction was outside the normal parameters of the account.

What does the risk department want to know?

The processor is typically trying to confirm a few basic things:

Is the transaction legitimate?
Did the customer or patient authorize the payment?
Is there an invoice or agreement?
Is this normal for the business or practice?
Does the business have a history of similar large transactions?
Does the merchant account need to be updated to reflect higher ticket sizes?

In some cases, the processor may request supporting documentation before releasing the funds. It’s frustrating because it can be a regular customer or patient of yours, but the processor does not know if there is any potential fraud and their job is also to protect the practice from fraud.

The supporting document they request may include:

Invoice
Signed treatment plan
Signed payment authorization
Explanation of the procedure or service
Recent processing history
3 months recent bank statements to show the practice carries a positive month end balance. If a business or practice is going to run a $10,000 transaction and then a chargeback comes through, there needs to be money in the account to support the large transactions.
Balance sheets to show healthy business

Why it matters

A risk hold can create a real cash-flow issue for your business or practice.

You may have already:

Scheduled the procedure
Ordered materials
Paid lab costs
Allocated chair time
Paid staff
Counted on the deposit or payment being funded

So, when the processor pauses funding, it can be frustrating.

This is where Omega helps

At Omega Transactions, our job is not just to set up your merchant account.

Our job is to help you when something like this happens.

We help businesses:

Respond to the risk department
Provide the correct documentation
Explain the nature of the transaction
Work to get funds released as quickly as possible
Review the account’s approved high-ticket amount
Update processing parameters when needed
Help prevent the same issue from happening again

The best solution: get ahead of it

If your business is starting to accept more higher-dollar payments, your merchant account should reflect that.

Your approved account parameters should match the way your business or practice actually collects payments.

That means reviewing:

Your average ticket
Your high ticket
Your monthly volume
Your recent growth
Your expected future case size

Large transactions are not the problem. The problem is when the processor is surprised by them.

Omega helps make sure your merchant account is set up properly, your risk profile is understood, and your cash flow is protected as much as possible.

If your business is accepting larger case payments, it may be time to review your merchant account before the next large transaction gets held.