Forex Merchant Account for providing unconditional support to merchants with FX payments

The UK financial regulator surveyed retail trading in 2016, including trading and binary options. They discovered that 82% of retail investors lost money. Trading is a two-edged sword in which you can make a lot of money or lose it all.

Previously, the forex market was totally under the control of banks, large financial institutions, fund managers in large corporations, and high-net-worth individuals. With the rise of online trading, however, anyone can now open a forex merchant account and trade currencies.

What is a forex merchant account?

A Forex merchant account is for Forex traders, Forex informational services, and Forex trading platforms.

Having a Forex merchant account and using Forex payment processing allows you to accept credit and debit cards from traders as well as other payment methods.

Why did the forex business consider the high risk?

It is a fact that Forex merchant accounts generally have higher rates of fraud and chargebacks. Furthermore, many Forex trading platforms are not licenced at all.

This widespread and essentially unavoidable lack of regulation is largely responsible for banks classifying Forex merchant accounts and Forex payment processing as high risk.

Eligibility Criteria for Having the Best Forex Merchant Account:

When assessing applications for Forex Company Merchant Accounts, banking institutions and payment processing platforms are likely to weigh the risks of opening an account against the potential profits from Foreign Exchange trading activity.

When making an evaluation, merchant acquirers frequently consider the following factors:

This indicates whether the company is licenced by the FCA (Financial Conduct Authority) or any other regulatory authority if it operates outside of the United Kingdom. Foreign exchange brokerages that do not have the necessary licences are typically unable to apply for a Forex Merchant Account.

Because it is simple for them to demonstrate their financial qualifications with past transaction data, reputable and well-established firms have a better chance of being authorised by Foreign Exchange payment processing platforms. A detailed and well-maintained financial plan can significantly increase your chances of acceptance.

Larger monthly card transaction volumes can help equalise risk levels and increase your chances of approval because merchant acquirers are primarily motivated by financial considerations.

The requirements for obtaining a Foreign Exchange merchant account vary depending on your company's location.

Foreign exchange brokers and merchants seeking a European account for payment processing must establish a legal administrative headquarters in Europe.

Once you have met the basic approval requirements and regulatory barriers, you will also need to provide financial statements. These statements should ideally include the most recent 3 to 6 months of payment processing data, as well as evidence of a low chargeback rate.

If you are unable to provide financial statements or payment processing records, you must show the provider how you intend to ensure payment security and reduce chargebacks. The process may include the use of non-intrusive 2FA (two-factor authentication) technologies that allow users to make quick payments.

Why choose EmerchantPro for your Forex business?

EmerchantPro is a market leader in payment services, enabling digital payments for merchants, consumers, and banks throughout the payments value chain.

 We enable FX merchants to do business smoothly with a certain flexibility in accepting payments. We provide multiple features with our payment gateway technology. Here are some of our features that you can look upon;

Tools for fraud

Assist in the detection and prevention of fraudulent transactions.

Security data

Protect your customers' information.

Methods of payment

Accept credit cards and other payment methods.

Reporting

Discover key transactional insights.

On a global scale

Global merchandise is possible

Payouts

Pay your sellers and freelancers all over the world.

Get in touch with one of our service representatives to know more about our services.

Conclusion

Forex is one of the highly liquid markets as compared to the other financial market. Despite the fact that the Forex market has been in operation for decades, many acquiring banks still regard it as high risk, making you a high-risk merchant. 

What you should prioritise before and during the initial stages of setting up your Forex merchant account is user experience, convenience, and payment security. You can take the help of a merchant account service provider to get started with your FX payment services.

0