Countries each have their own currencies, and the value of those currencies can ebb and flow over time, based on a wide range of different factors. The value of the US dollar compared to the British pound, for example, can change greatly from one year to the next or even from one month to the next.
Before we look more closely at the specifics of Forex merchant accounts and what is involved in obtaining these accounts, it’s important to understand the basics of the Forex industry. As covered in the industry, the Forex market is a highly liquid and volatile market in which traders buy and sell different currencies and the values of those currencies fluctuate over time.
The Forex market opens up a lot of potential opportunities for businesses. Entrepreneurs can choose to simply get involved in Forex trading themselves, for example, or set up their own Forex platforms and trading exchanges. Or, you can run a Forex business handling foreign exchanges on an over-the-counter basis. Either way, regardless of the type of Forex business you’re doing, you have to a Forex merchant account to make it all happen as simply and seamlessly as possible.
So what is a Forex merchant account and how do these kinds of accounts work? Well, before we look at the specifics of Forex merchant accounts, it’s a good idea to learn the basics of merchant accounts in general; a merchant account is a business account that allows businesses to receive electronic card payments from their customers or clients.
For example, an online retailer may need a merchant account in order to allow customers to pay for their orders with their credit or debit card online, without needing to visit the retail location in person and scan their physical card. In other words, merchant accounts aim to make payments faster and easier, allowing online transactions to occur safely and securely.
This can be really important when it comes to Forex trading, because the vast majority of Forex payments are made online, electronically. So, if you’re running a Forex trading business or trading platform, it’s vital to have a Forex merchant account set up so that payments can be processed and received without any issues.
If you want to get involved with Forex trading or run a Forex-oriented business, it’s vital to have a Forex merchant account to do so. However, the process of actually obtaining these kinds of accounts can be a long and challenging one, and many Forex traders struggle to obtain the Forex merchant accounts and services that they need.
There are a few reasons behind this. The main issue is that Forex trading and Forex platforms are seen as high risk businesses and associated with high risk payment processing; in other words, many banks feel that Forex trading is highly risky and potentially dangerous for those involved, potentially leading to bankruptcy and difficult financial situations.
There’s also a lot of fraud involved in the Forex world, as well as a generally high rate of chargebacks; chargebacks occur when cardholders request refunds on payments they have made with their credit cards. This can happen for various reasons, and it often leads to extra work and unexpected fees for the banks and payment processors involved in the Forex transactions.
In addition, it’s worth noting that Forex, by its very nature, is a global trading platform. Rules and regulations change from one country to the next, and this makes it very difficult, or even impossible, to control what happens in the Forex world. It can be a volatile and unpredictable market, and there are fraudsters and unlicensed platforms out there trying to take advantage of that fact.
All of the fraud issues, chargeback problems, and other risks associated with Forex have resulted in the platform having a relatively negative reputation. Therefore, many banks prefer to avoid dealing with Forex traders and Forex-oriented businesses. And, as mentioned above, this can make Forex merchant accounts very tricky to get.
There are clearly some challenges associated with obtaining a Forex merchant account. So what can you do if the banks you turn to reject your applications and refuse to provide the Forex merchant accounts and services you require? Well, that’s where Shark Processing comes in; we can help you get the merchant account for Forex trading you need.
At Shark Processing we specialize in helping high risk businesses obtain merchant accounts and services. We know all about the high risk payment processing challenges that you can face when running a high risk business like a Forex trading platform or company, and we’re here to help you, partnering with a network of reputable banks and payment processors to make it happen.
Our expert, experienced team of high risk credit card processing professionals are standing by, ready to find out more about your situation and use their expertise to match your business with the ideal Forex merchant account to meet your needs. So give us a call today and find out what we can do for you and how we can assist you in obtaining the right Forex merchant account.