Forex is the abbreviation of foreign exchange. It is one of the most active global markets where foreign currencies are brought, sold, threaded, and speculated on. Its each day transaction is approx $ 6.6 trillion. This market is open 24*7.
Generally, the forex market operates with two different business models -
- The first scenario entails currency trading between banks on the interbank market.
- The second serves those who transact in foreign exchange on the over-the-counter market through brokers or trading platforms.
Having a forex merchant account for the forex business and using the forex payment gateway allows merchants to accept credit and debit card payments from customers and gives the advantage of alternative payment methods.
A forex merchant account is a particular type of bank account that allows forex merchants to accept funds in foreign currencies. This type of account is generally preferred by a merchant who deals with foreign companies and conducts transactions with customers in other countries.
A forex treading merchant account provides many benefits, including -
- First, companies can benefit from the foreign exchange rate and the dollar value, saving money on each transaction.
- Processing costs for forex merchant accounts are frequently lower than those for conventional credit card processors.
A forex merchant account is the best solution if you are looking for a way to accept foreign currency. You can reduce the cost of each transaction by taking advantage of the lower processing costs and exchange rates. Make sure to compare service providers to find the best offer for your company.
Why is the Forex Industry is High-risk industry?
There are lots of reasons which make the forex industry a high-risk industry. Some of the most common reasons are -
Lack of Regulations: As you know that Forex is an international platform, and no country has jurisdiction over another country’s currencies. Most acquiring banks and financial service providers view the lack of regulations and deny offering their services.
Potential Chargeback: Chargebacks plague the majority of high-risk sectors because they ultimately cost both the merchant and the banks/processors in the long term. Chargebacks from investors who may have lost money are possible while dealing with Forex. These losing traders might try to dispute particular transactions by issuing chargebacks.
Lack of financial documentation: The forex merchant needs to arrange all the necessary personal as well as business documents. You must provide the financial information to ensure your forex merchant account gets approved.
Along with these reasons, there are many more reasons, like high- volumes, money laundering, etc.
What not to do when Selecting the Forex Treading Merchant Account?
When choosing the payment processing for your forex business, make sure you don't make the following mistakes.
- As Forex is a high-risk business, always choose a high-risk processor, as choosing low-risk solutions could result in account terminations.
- The utterly new forex merchant has to do lots of research about the service provider and their credit card processing statements. Otherwise, this will result in paying higher fees.
- Today you can get many service providers who say they can approve your account instantly, But in reality, there is nothing like instant approval. Choosing a service provider that offers instant account approval is not a good idea as it results in account terminations, high fees, etc.
- Always check the contact details of your selected payment processors. If you cannot find the contact no and email id, then it is better to look for another service provider. It would be best if you went with the service provider who offers 24*7 customer support.
You will typically be required to provide the following documents to support your account application, though different merchant acquirers may request additional records.
- Three to six months of bank details
- Three to six months of payment processing history
- Valid identification proof (like driving license or passport)
- Utility bill for address proof
- Identification information for the account to which processed payments should be transferred
- Corporate records to prove who owns your company
- Information about registering a domain (for online Forex payment processing)
How Will PayCly Help you?
Today, you can get many service providers but choosing the best among the thousands takes a lot of work. So, without wasting time, we suggest you select PayCly as your forex service provider.
PayCly is one of the leading payment service providers with lots of experience in dealing with the forex industries, so it completely understands your business needs. With PayCly, the merchant can get all the payment-related solutions in one place. It means that merchants can quickly get the forex merchant account, forex payment gateway, and credit card processing in one place.
We, as PayCly, maintain reasonable and professional relationships with most of the acquiring banks, so with us, the chance of getting approved for a high-risk merchant account get increases.
Directly contact the expert team to learn more about PayCly.
Final Thoughts -
Forex is one of the most liquid markets in this world. Most service providers deny offering their services to this industry and consider it a high-risk. There are lots of reasons which make it high-risk. This reason includes – high volume, high chargeback rates, lack of regulations, money laundering, etc.
The merchant should arrange all the necessary documents before applying for the merchant account. We recommend you choose PayCly as your forex service provider. As PayCly has lots of experience in the same field, it offers you the best solutions at the best rate in the markets, which will help you to raise your business to the skyrockets.