Everything You Should Know About Forex Merchant Accounts

Oct 22, 2019

The foreign exchange market (Forex or FX for short) is a decentralized global market for buying, selling and exchanging currencies from all over the world. In a marketplace as volatile as the foreign exchange, a Forex Merchant Account can help you conduct currency trades in a safe, secure and timely manner. They can also provide you with expert consultancy to navigate the tricky elements of forex.

Whether you require a forex merchant account for brokerage needs or as a means to convert currency for international operations, having one can stretch the reach of your trading ability.

Working with a reputable forex broker can give your business access to established working partnerships with several banks around the world and can provide support through each stage of the exchange process.

Finding a forex merchant account solution that works best for your business’ needs is paramount for your ability to succeed and grow in the international marketplace.

Potential Issues in Opening a Forex Merchant Account

Depending on your status as a business, banks can be more or less willing to work with your business to process transactions. If you are a newer business, lack a license or certain regulations, or don’t have a long enough history to be supported by robust financial documentation, this can reduce your chances of being accepted by certain forex brokers.

This is because banks look for a history of dependability before agreeing to work with a business. If you don’t have a proven track record, it can limit your ability to do business.

This also helps the banks to weed out potentially fraudulent businesses that are trying to abuse the system for their own gains.

While this can be a deterrent for legitimate businesses, there are still options available for companies that have certain high risks. These options will allow you to start doing business right away, though there may be additional fees put in place to help mitigate risk.

Considerations of Getting a Forex Merchant Account

Depending on the jurisdiction from which your forex broker company operates will have an impact on the capabilities of your forex merchant account. An example of this would be that some nations only allow for transactions to occur within the region of that country.

Other types of transactions can also be affected by this. This is an important consideration to make when deciding on which broker company to do business with.

Many forex merchant accounts also require a small initial investment for leverage known as a margin, so be prepared to have this money.

An expert consultancy firm will be able to answer any of your questions and direct you to the best type of merchant account to meet your business’ needs.

Make sure that the company you’re looking to do business with provides you basic services. A good forex merchant account should provide you with the following:

  • Encrypted processing areas
  • Foreign currency exchange
  • Fraud protection
  • Gateway protections
  • Great customer service
  • 24-hour storefront
  • Virtual terminal

In addition to these services, EMB provides additional options to help customize a solution for your business, including chargeback shields, competitive rates, and expert guidance.

Let us help you get a high risk merchant account today!

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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