What is a Forex Merchant Account?
Foreign exchange is abbreviated as Forex. Foreign currencies are bought, traded, swapped, and speculated on in the forex market, which is a global over-the-counter market. Forex is the largest and most liquid trading market in the world. Every day, more than $5 trillion is traded on Forex. Let’s understand all about a forex merchant account.
The Forex market is divided into two tiers. The first is the interbank market, which is where large banks trade currencies. The second is the over-the-counter market, where individuals trade through brokers or online trading platforms.
The first model includes currency trading between banks in the interbank market. Individuals that trade currencies on the over-the-counter market using brokers or trading platforms fall into the second category.
Forex traders, Forex trading platforms, and Forex information services all have merchant accounts. Accounts for forex credit card processing allow you to accept debit and credit cards from traders as well as use various payment methods. If you have a Forex merchant account and use Forex payment processing, Forex payment processing services might also include the provision of alternative payment options.
The Advantages of Forex Payment Processing
Our goal is to provide you with the finest Forex merchant account rates, approvals, and terms possible. You can accept payments with ease thanks to the high volume processing capacity.
A large bank network- Diversify your processes by using a variety of acquiring banks. Reduce how much you depend on a single bank to lower the risk of FX payment processing.
High-volume Processing: Get the processing power you need to run and grow your business.
Multicurrency Processing – Cross-border transactions have become increasingly common because of the rise of blockchain technology, Bitcoin, and other cryptocurrencies. Multicurrency transaction processing is what your business does when customers pay with credit cards in different foreign currencies.
Tools for finding and stopping fraud: Tools that can be changed make sure that processing is safe.
Multi-Channel Payments: These are a type of payment that can be made in a variety of ways. Accept payments via the internet. For MOTO transactions, you have an unlimited number of virtual terminals. Accept payments via your mobile device. Alternatively, you can submit large processing files for quick processing.
Gateway for Credit Card Processing in Forex- Major shopping carts, CRM, and accounting systems are all integrated. Productivity is boosted by the rapid interchange of processed data.
Why are forex firms considered high-risk?
Acquiring banks classify Forex merchant accounts as high-risk. The foreign exchange market (Forex) is a global trading platform. No country has authority over the currency of another. Although the majority of trustworthy Forex trading platforms are regulated, others are not. Banks are concerned about the absence of regulation, so they define FX payment processing as a high-risk business.
Another reason for the high-risk rating for Forex payment processing is the possibility of chargebacks from disgruntled investors as well as the possibility of fraud. Traders who have lost money can file a chargeback to challenge the transaction. Furthermore, money laundering worries have caused several acquiring banks to avoid the market.
Several of these worries can be taken care of when your Forex merchant account is set up. Account approval is aided by having relevant licensing in place. Strong anti-money laundering and know-your-customer rules are also important.
Because your Forex business is considered “high risk,” many banks and financial institutions will refuse to open a merchant account for you. It’s easy to find credit card processing companies that will set up this type of account for astronomically high fees. Some corporations refuse to cooperate with all types of forex businesses, such as those involved in trading and only permit those offering educational programs, software, and the like. Furthermore, if there are other issues with the merchant, the matter may get even more problematic. They could include things like a poor credit score, issues with the prior card processing firm, and so on.
What You’ll Need to Get Started with a Forex Merchant Account
- The standards that must be satisfied to become a Forex merchant differ depending on where you are located.
- If you’re a European Forex trader, for example, you’ll need to have a physical presence in Europe as well as be a registered foreign exchange.
- You should then offer your income earnings to the acquiring bank you’ll be working with once you’ve established legal and corporate headquarters.
- You’ll need 3 to 6 months of processing history and a low overall chargeback rate to impress the acquiring bank.
- If you don’t have any processing history to show, you can help your bank relax by incorporating 2-step authentication, such as 3-D Secure, into your checkout process. This will add an extra layer of payment protection.
- Two-step permission methods, on the other hand, can be a true conversion killer. So, when you are looking for a payment processor for your Forex business, check to see if any of them offer a version of this feature that is easier to convert.
- Some providers, for example, offer more subtle, non-invasive versions of 3-D Secure, so customers don’t have to deal with unpleasant pop-ups or redirections (as the authentication is displayed as an overlay).
- This type of verification system can help you keep your chargeback rate low while also increasing your conversion rate.
Processing of Foreign Exchange Payments
Over the last ten years, huge changes in technology have made it easier for people all over the world to pay for things. It wasn’t long ago when bank wires, checks, local deposits, and other almost-obsolete payment methods were commonplace.
Forex trading takes place all over the world and requires a lot of work. Technology has been a big part of its rise to the top. Today, however, debit and credit cards, as well as e-wallets that protect your privacy, have mostly replaced these old ways of making payments.
These new payment methods are great at handling real-time transactions, which are very important in high-risk businesses like Forex.
Fraud and chargebacks
Fraud and chargebacks are regular concerns for high-risk industries, and the Forex market is no exception.
Unfortunately, acquiring banks are hesitant to work with you because you have a lot of fraud and chargebacks. They are afraid that you will become a liability in the future, which is also why your Forex merchant account is called “high risk.”
Keeping this in mind, it’s important to quickly and effectively solve any problems that could hurt your income.
Find a payment processor that specializes in high-risk merchant accounts to help you do so most effectively. They’ll be able to understand the specific Forex-related challenges you’re facing and will be able to help you resolve them faster.
The Benefits of Using Credit Cards
Credit cards and e-wallets are the most popular payment options among Forex traders since they allow them to make any number of deposits in a short period of time.
Accepting credit card payments is good for a forex business because it helps bring in more cash, makes things easier for customers, and keeps you competitive with other businesses in the same field. Forex trading is such a fast-paced and demanding business that you’ll want to find a payment processor that can offer you a high-risk merchant account with one-click payments.
If you’re looking for a payment solution that goes above and beyond in this area, look for one that combines one-click payments with tokenization technology to protect customers’ sensitive data for maximum transactional security.
Why choose PayStudio to process your Forex payments?
The key to successful Forex trading is the ability to accept payments. PayStudio was chosen by binary options and Forex merchants for a variety of reasons.
- Multiple acquiring banks help you limit processing risk.
- Level 1 PCI-DSS security ensures that your processing is compliant and secures your organization.
- Multi-currency processing is a feature that allows you to process multiple currencies at the same time. You can accept payments in 160 different currencies. Receive settlement funds in 25 different currencies.
- Processing of large-ticket VIP payments
- To keep your business safe, we use fraud-prevention tools.
- Chargeback mitigation programs aid in the prevention of chargebacks.
- Competitive rates
- Technical assistance is provided at no cost.
- Excellent 24*7 customer service.
- Increase sales by using alternate payment methods that are specific to your area.
- Receive settlement funds from processing in BTC without any delay.
PayStudio is tied up with 35+ acquiring banks and has solutions for any type of merchant that is looking for a Forex merchant account.
Even though the Forex market has been around for decades, many acquiring banks still consider it high-risk, making you a high-risk merchant.
Look for a merchant account provider and payment processor whose solution is innovative and future-proof, as Forex shows no signs of slowing down, to make sure you can offer great services to your demanding customers all over the world.
Drop us an email at email@example.com or call us at (+44) 0 (800) 887 0291 for further queries