Merchant account for a forex company

Any modern business is unthinkable without online payments. There are areas where these payments make up 100% of the turnover of funds. But such payment is impossible without the company having a merchant account or a merchant account, which will receive funds from various payment systems.

Connecting a merchant account consists of three stages – selection of the best option, concluding a service contract with a legal entity that provided this merchant and technical connection to a payment gateway.

If we are talking about a forex company, that is, in terms of banking qualifications, a highly risky business, then the first stage – the selection of the optimal merchant account causes the greatest difficulties.

The Forex market is hundreds of millions of transactions every day, which are performed by millions of people – traders. Technically, these operations are provided by special forex platforms or forex brokers (forex companies). The forex market is growing rapidly. The number of traders and forex brokers is growing rapidly.

For the successful operation of any forex company, in addition to the forex platform (specialized software), it is necessary to be able to allow its traders to freely replenish their forex accounts and withdraw money from them to their bank accounts. All this is possible only if the forex broker has a merchant account.

What difficulties do a forex company face when opening a merchant account?

For a high risk bank, a business like forex has several negative aspects:

  1. High risk business is a high risk of payment return. That is, a client of a forex company, having received a loss instead of the promised high profit, can initiate a chargeback – a refund. And with a high degree of probability, the payment system through which the payment was made may require the payment to be returned to the client. For the bank, these are unnecessary expenses for such transactions.
  2. There is a lot of fraud in the Forex market. The Internet is full of stories when scammers, posing as a forex broker, collected money from gullible traders and disappeared with them. If the bank served these fraudsters, then this is a stain on its reputation, proceedings with international payment systems and law enforcement agencies.

The chances of a forex company to open a merchant account in a bank are further reduced if it is young and does not, accordingly, have a positive financial history. And if there is also no license to conduct operations in the Forex market, then the chances of opening a merchant account in a bank become completely illusory.

And even if the bank agrees to open a merchant account for a forex company, it offers unfavorable conditions, setting high commissions:

  • for payments, for example from 7 to 15% of the payment – of the transfer amount;
  • for withdrawing funds to a corporate account;
  • for processing the return payment – here the commission can be simply draconian.

At the same time, consideration of an application for obtaining a merchant account can take a month or more!

Forex merchant account

Providing merchant accounts for companies operating in the Forex market is one of the priority areas of our activity. We have established partnerships with a large number of European acquiring banks, which allows us to offer our clients very loyal terms of cooperation.

What a Forex company will get by applying for a merchant account at tobebroker.com:

  1. Fast consideration of the application. Instead of a month – from three to seven days.
  2. High chances of approval – we make a positive decision in 93% of cases.
  3. Fair rates. Our commission for transactions, withdrawals, etc. is noticeably lower than in a bank – from 1.90%.
  4. Easy integration. Our experts will make this process quick and easy.
  5. Reliable and uninterrupted operation of the payment gateway.
  6. Cooperation with 50 payment systems and more than 30 currencies. In addition, we work with the most popular cryptocurrencies. In fact, this means that a merchant account with us will suit 99.99% of sellers.
  7. High reliability. Our algorithms (anti-fraud filters) allow you to block fraudulent payments without interfering with the flow of genuine payments.
  8. Acceptance of payments through international payment systems with activated option 3D secure or without it.
  9. Effective fight against chargebacks.
  10. Consulting support around the clock.

Personal merchant account for a forex broker

Tobebroker provides forex companies that are taken for service, provides a personal merchant account. This means that the account holder is the sole owner of the account and has full control over payments. Often, other companies that provide merchant account services to highly risky businesses provide an aggregated merchant account that contains several (sometimes a lot) merchant accounts to increase their profits. But this dramatically increases the level of risk, since a situation is possible when, due to the blocking of one merchant account, the entire merchant account may be closed and other owners of merchant accounts who were on this account will suffer.

What determines the cost of servicing a merchant account

The cost of maintaining a merchant account depends on the following factors:

  1. Monthly turnover. The higher it is, the lower the cost of servicing one transaction. We are constantly reviewing the cost of service, and if you, starting with a small turnover, gradually increase it, then the cost of servicing one transaction will decrease for you.
  2. Past financial history. A positive processing history can strongly influence the tariff towards its reduction.
  3. License. Having a license to conduct an operation in the Forex market is an important factor affecting the level of risk. If you do not have such a license, please contact us for advice.

How to get a merchant account?

Obtaining a merchant account in our company consists of the following steps:

  1. Contact us by filling out a special application on the website. Our specialist will contact you and tell you in detail what documents are required from you to consider the application.
  2. After consideration of the application (up to 3 days), you must sign a service agreement.
  3. Integration. You will be provided with detailed API technical instructions. You can also contact our specialists at any time.
  4. Start accepting payments. Completing the integration, you need to conduct a test operation, after which you can accept real payments.

Add a Comment

Your email address will not be published. Required fields are marked*