Forex Merchant Account 101:Everything You Need To Know

Dec 20, 2022

The foreign exchange or forex trade market is a global marketplace where international currencies are bought, sold, and kept track of. Forex merchant accounts benefit foreign exchange merchants and trading programs.

Forex Merchant Accounts: What Are They?

Forex Merchant Accounts are bank accounts that enable the trader or trading program to obtain credit or debit card payments from customers in foreign currencies. This type of account is popular among online retailers or any company that does business with customers in another country than their own.

Why Are Forex Merchant Accounts High-Risk?

Companies that do business in Forex are considered high-risk because of the unstable nature of the international money markets. There are other reasons besides consistent price fluctuations that it is difficult to be accepted for a Forex Merchant Account, including:

  • Unclear regulations
  • A large number of chargebacks
  • Money laundering suspicion
  • Lack of money documentation
  • Lack of a consistent track record

Factors That Affect Eligibility For A Forex Account

When processing applications for a Forex account, banks and other payment processors weigh the risks of opening the account with income from foreign market trading activity; when reviewing applications, banks will consider these factors:

1. License Status

License status shows whether the FCA, Financial Conduct Authority, or another regulatory program authorizes the merchant. Foreign exchange merchants can’t apply for a Forex merchant account unless they have the proper license.

2. Payment Statements

Established companies have a better chance of being approved by a Forex payment processor because it is easy for them to prove their track record and financial qualifications. Accurate transaction history can remarkably improve the chances of your business being accepted.

3. Trade Volume

Merchant applications are considered based on financial worries, so the higher the volume of transactions, the more it can improve your changes and balance your risk level to the processor.

The Types Of Forex Merchant Accounts

Forex business owners accept payments in several varieties and currencies. Due to the market consistently changing, timing is crucial when making trades.

Credit and debit card payments provide the quickest, most convenient ways to fund a trading account. 

These are the most popular types of Forex merchant accounts:

1. Credit Card Processor Accounts

Forex merchants want credit and debit payment processing options because they are the quickest way to obtain money for foreign currency trading. However, regulations made by major companies such as Visa or Mastercard make it extremely grueling to maintain a Forex credit card processing account.

2. Check Processor Accounts

Check payments are a highly-used alternative to credit or debit cards for Forex payments. Settlement timing for checks can take days, but there are also fewer restrictions on checks, so these accounts can be simpler to keep up with.

3. Cryptocurrency Processor Accounts

While cryptocurrency is becoming a popular payment method, not many Forex merchants use digital currency to transfer funds. Completing payments with cryptocurrency is difficult and complex, and the actual value of digital currencies could be more stable.

4. Bank Transfers

Wire transfers are becoming a payment method of the past. They are seen as inconvenient due to the sheer amount of forms consumers need to complete to make deposits. Transfers also take a more extended amount of time to complete than methods like credit cards.

The Benefits of A Forex Merchant Account

The Benefits of A Forex merchant account include the following:

  • A large bank networking framework
  • High-volume payment processing
  • Ability to process high-value transactions
  • Processing multiple currencies
  • Flexible payment options
  • Fraud management
  • Payments through multiple channels
  • Credit card processing interface

How To Apply For A Forex Merchant Account

Applying for a Forex merchant account is similar to applying for any merchant account. Depending on where your company is located, the requirements for applying will be different. 

For example, in certain countries, you must live there or be registered as a foreign currency merchant in that location. All these requirements must be followed first before applying.

Once those basic requirements are met, there are vital documents that you will need to supply to improve the odds that the account is approved. 

These include:

  • Ownership details for the account
  • At least three months of bank statements
  • Three to six months of statements for payment processing history
  • Corporate documents that establish ownership of the company
  • Photo identification
  • Utility bills for proof of business address
  • Business domain registration 

What to Look For In A Forex Merchant Payment Gateway Supplier

An online payment system is critical for any Forex merchant looking to do business on the internet. Merchant payment gateway providers offer credit card processing to take payments quickly. 

When choosing a payment gateway, look for the following:

1. Strong Security

The best Forex merchant processors provide security measures to ensure the safety of your customer’s personal information and payment.

2.  Fraud Prevention

The foreign market has struggled to overcome fraud over the years. Hiring the right payment gateway can prevent fraud and reduce risks for your customers.

3.  International Payment Processing

Forex merchants have to be able to process payments from multiple currencies to perform business. Finding a gateway that can accept payments in a large variety of worldwide currencies is vital.

4.  Regulatory Compliance

A provider that offers regulatory compliance is critical for Forex merchant accounts. Find a provider that is an NFA member or is regulated by the CFTC. The NFA membership should be listed in the “About” section on the provider’s website. 

Forex merchant accounts should be created with providers that are officially regulated to ensure the security of deposits.

5. Prevents Downtime

A Forex merchant account is vital for a foreign business that accepts online payments. If the provider you’re researching reports regular downtime, this can prevent you from doing business effectively. 

Glitches like unexpected server shutdowns cost you money and irritate customers looking to buy from your company. 

6. Great Customer Service

As with any service, you may have questions about your account. 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.

 Especially if you have an online business, doing business never stops, whether at 3 am or 9 pm. It’s essential to be able to contact your provider to fix any issues quickly and keep business going.

Benefits Of Utilizing a High-Risk Merchant Bank For Forex Payments

High-risk merchant payment processors both understand the unique problems that a Forex merchant can experience and are also likely to be experienced in processing applications for high-risk trading.

Besides these factors, there are several reasons why a high-risk merchant bank can benefit Forex merchant payment processing, including:

  • Lower rates than standard merchant payment processors
  • Ability to process high volumes of global transactions with different currencies
  • Higher fraud detection and prevention
  • Ability to process multi-channel payments
  • Unified credit card processing systems that work with your existing systems

Should My Forex Business Have A License Before I Apply For A Forex Merchant Account?

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.

How Much Does A Forex Merchant Account Cost?

The specific cost for a Forex merchant account will vary for each company. The average account cost ranges from $19 to $45 per month, with a transaction fee of 2.49% or above.

Do I Need A Forex Merchant Account?

Forex Merchant accounts are crucial to conveniently running your foreign business. To accept quick payments with multiple currencies worldwide, a Forex account is necessary. Especially if you plan on doing business online, a merchant account is required if you want to get around using a payment gateway processor.

Final Thoughts

Although the foreign exchange market has been operating for decades, most banks still see it as a high-risk industry due to the variability and stability issues. The most important things you can offer your customers are ease of use and payment security. 

To guarantee that you can deliver services to your worldwide customers, choose a payment processor that provides modern solutions and Forex merchant accounts. You will want to choose a processor that can offer greater security to your customers, allows you to process many currencies, provides regulatory compliance and excellent customer service, and works diligently to prevent fraud.

EmerchantBroker has been voted the #1 high-risk processor for Forex merchant accounts in the USA and  provides merchants with highly secure, convenient Forex accounts. Open your Forex merchant account today with www.emerchantbroker.com.

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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