It has to accept payments in different foreign currencies because it is a global platform. The problem with accepting payments in a different currency than the native one is that the foreign currency has to be converted into the native currency before the online forex processing can begin. But with a forex trading merchant account with multiple currency support, a forex broker can easily conduct transactions in multiple currencies without converting them. All forex merchant accounts use the same principles, regardless of the merchants or customers location.
Because of global operations, there are a huge number of chargebacks, and from those chargebacks, a certain amount is actually a chargeback dispute. The remaining ones are most likely fake ones that can cause a decent loss to the business. This is why it is important to have a merchant account for forex trading with chargeback protection. Although the use of credit cards for Forex trading is not legal in the US, debit cards can still be used to fund accounts. And traders in many other countries can use credit cards without any issues. International trading platform Forex merchant accounts require processing history showing a minimum of $250K per month to qualify for an account.
Forex Merchant Account · Forex Payment Processing
(Smurfing is a technique of money laundering in which many small amounts of transactions are deposited into various bank accounts). Chargebacks are the top reason for every business to be classified as a high-risk business by banks. Because banks have to settle chargebacks on their own and if a false chargeback can get paid then it becomes the bank’s loss rather than the merchant’s (although banks recovered it from the merchant).
Known as the fx market, it is an online marketplace where all of the world’s currencies trade globally. It is the largest and most liquid market, with over $5 trillion daily trading volume. The market offers the ability to exchange one currency for a different one and is open 24 hours a day, 5 days a week on various trading platforms. Brokers accepting payments from these traders will need forex merchant account services.
Where GoCardless Really Shines For International Payment Processing
Due to the high yields, it makes on currency trading, it is the ideal area to invest. But, to operate the forex businesses smoothly, merchants ought to need a forex merchant account and forex payment gateway. We have seen the landscape of the forex market; now, let’s see how forex payment processing is essential in facilitating forex trading.
Most consumers today have access to a credit or debit card, making offering these business services to clients extremely simple. There are a few different reasons why Forex merchant accounts are deemed high-risk. One of the most common reasons is a lack of track record from new https://www.xcritical.com/ brokerages. When payment processors view an application, they want to see proof of a strong business with growth. An established brokerage is typically able to make the application and approval process worthwhile as they have much high trading volumes and stronger reputations.
What Is A Forex Merchant Account, And Why Are They High-Risk?
The payment gateway acts as a mediator to ensure that customer’s payment information is encrypted and secure. Yes, high-risk merchant banks typically won’t accept applications for a Forex business that doesn’t have the proper license for their territory. Ensuring that your business is fully licensed before applying can increase your chances of application approval. The provider that you choose should have customer service options available 24 hours per day, so you can always reach someone if there are issues. Applying for a Forex merchant account is similar to applying for any merchant account.
Contact one of our binary and forex payment processor specialists to open your forex merchant account today. Although most reliable Forex trading platforms https://www.xcritical.com/blog/payment-processors-for-forex-business/ are licensed, others are not. The lack of regulation is a major concern to banks which then classify Forex payment processing as high risk merchants.