Forex is short for Foreign Exchange and is a global over the counter market from which foreign currencies are bought, sold and traded. It is the largest and most fluid trading market with over $5 trillion in transactions per day. The Forex market is open 24 hours a day, including most holidays.
There are two market levels in the Forex market: interbank where large banks trade their currencies and over-the-counter where individuals trade through brokers or online platforms.
Forex merchant accounts were created for Forex traders, Forex platforms and Forex information services. Forex credit card processing accounts give the business the ability to accept debit and credit cards from traders and are an alternative payment method.
What are the benefits of Forex Payment Processing?
The goal for any Forex payment processor should be to deliver the lowest rates and fastest approvals. High volume processing gives you the ability to accept payments quick and easy.
- Multicurrency Processing
- Multiple Payments Methods – Accept all major card brands and be relevant for various countries
- Forex Credit Card Processing Gateway
- Low Rates
- Extensive Bank Network
- High Volume Processing
- High Ticket Processing
- Extensive Fraud Management Tools
- Multi-Channel Payments. Accept payments online
How can you apply for a Forex account?
The application for a Forex account is free and comes with no obligation. You should be willing to allow for 7-14 business days for account approval. The application process is straightforward and quite simple. You need to submit an application together with supporting documents. These include:
Color copy of driver’s license or passport for the signer on the account; voided check from the bank to which processing funds will settle; 3 months business bank statements; 3-6 months of payment processing statements; and business formation documents such as Articles of Incorporation.
International trading platform Forex merchant accounts will also require the processing history showing a minimum of $250K monthly before you can qualify for an account. Once you are approved, you can process as much volume as your business needs to.
Secure Forex Payment Processing
Forex has so many account management and protection tools included. These identify legitimate transactions, decline fraudulent ones and set aside the ones that may be uncertain to be reviewed manually.
Reasons Forex Merchant Accounts are classified as High Risk
No country has a jurisdiction over another country’s currency. Most reliable Forex trading platforms are licensed but there are many that are not. This is a major concern for banks and this is why Forex payment processing is deemed high risk. Forex debit and credit card payments are valuable to trading platforms and cards are the quickest way of funding these accounts. Time is money and things need to be handled quickly because the competition is ready and waiting.
Even with Forex payment processing, chargebacks are a common issue and there is also the risk of fraud. Traders who lose money may become unhappy and then dispute the transaction by issuing a chargeback. The concerns about fraud are also another reason why banks tend to steer clear of this industry. However, these concerns can be addressed during the underwriting of your Forex merchant account. When you have proper licensing in place, you are more likely to have your account approved.
What to look for in a Forex processor
When looking for a Forex payment processor, there are things you need to look out for:
- A service that allows for multiple banks to help you mitigate the processing risk
- Level 1 PCI-DSS security which keeps the processing compliant & protects your business
- Ensure that they have high volume processing accounts. Get the processing volume you need to grow your business
- Multi-currency processing – This is important if you are doing business globally
- Large ticket VIP payment processing – this is an add bonus and you may not require it
- Fraud fighting tools to keep your business safe
- Chargeback mitigation programs help stop chargebacks before they occur
- Competitive rates
- 24/7 technical support and customer care
There are many factors that you need to consider, the above is a guideline. Find the one that serves your business best and let them help you to grow your business. Ensure that the processor you choose is truly meeting your business needs and if you are unhappy, speak with them or find another processor.