Although cash-on-delivery remains the most popular payment method in Russia, card issuers are coming up with fun, exciting new ways to incentivize card payments. So it comes as no surprise that credit and debit cards are being used more frequently both on and offline. That’s why when it comes to businesses opening a merchant account Russia isn’t lagging far behind.
With card payments expected to become the number one preferred payment method in Russia within a few years, it’s time to take action. Does your business support electronic payments yet? If you answered now, then you should consider setting up your Russian merchant account today.
A merchant account in Russia isn’t like a typical bank account. This financial product is made available solely to businesses and is actually the tool that allows businesses to take payments from credit and debit cards. They’re established with merchant acquiring banks that provide the service of communicating to card issuers with your payment request information.
How exactly do they do that? Here’s a rough idea:
When you sign your contract with a merchant acquiring bank, the schedule of disbursement is going to be one of the things you’ll discuss. Some banks can offer to disburse transaction amounts immediately, while others will have you wait on a weekly schedule to receive all accumulated payments.
And of course, it’s also worth noting that these services aren’t free. Rates for the process can vary from contract to contract, but most will charge between 0.5% and 5.0%. This amount is typically baked into the buyer’s payment. So if they purchased $200 worth of goods inclusive of shipping fees, the processing fee is taken from that total value.
That’s why some businesses impose a processing fee to offset the cost and to keep their revenue whole. So buyers would then be required to pay the cost of their purchase inclusive of shipping fees and associated charges, plus an added 0.5% to 5.0% of that value.
Any business can open a merchant account in Russia, but not everyone needs one. For instance, microbusinesses that operate within a small sphere of the community might not need a merchant account, especially if all payments are more conveniently tendered in cash.
That said, any business that has the potential to cater to a wider audience, or that wants to seamlessly sell its products and services online would do well to set up a merchant account in Russia.
This service is available in almost all banking institutions and can be opened for businesses that are able to provide the right documents and paperwork during the application process.
It’s important to remember that banks in general are highly selective and conservative. Since they deal with money, financial institutions are careful to enter contracts or transactions that would turn out to be a potential liability for their business.
So before you can open a merchant account in Russia, you will have to present a number of documents to give the bank a better idea of what your business is. These include things like your transaction and financial records, permits, proof of address, contact information, and maybe even your personal information as the owner.
If you have an established relationship with the bank, then it might be easier to apply since they should already have an idea of your business and your capacity to fulfill certain financial obligations. But if you’re a first-time client, then it might take a little longer to get your approval.
However, the process of applying for a merchant account in Russia becomes even more of a challenge if your business is perceived as high risk. Again, banks are conservative and they shy away from contracts that could be a problem in the future.
So high-risk merchant accounts in Russia may be doubly difficult to get approval for because of their increased chances of chargebacks. But what exactly makes a merchant account in Russia “high risk”?
Want to know your risk rating? Although there’s no way to precisely understand the exact method that banks use to measure a business’s risk, there are certain factors that we know for a fact can affect your business’s risk level.
High-risk international merchant accounts in Russia will tick off several of the items on the list. And when banks perceive that, they’ll tend to shy away from signing the contract because of the increased chances of having to reverse more transactions than they’re comfortable with.
Remember that as the intermediary between your Russian merchant account and the brand on the card, your merchant acquiring bank also bears the burden of having to execute payment reversals. And since no one really wants to return a perfectly good payment, they’ll avoid dealing with businesses that pose that risk.
So if you’ve been getting your Russian merchant account rejected try after try, then it might be because of your risk rating. And although it might feel impossible to get approved at this point, there are things you can do to still set up your electronic payments.
And that’s what Shark Processing is here to help you with.
Shark Processing is a merchant account specialist that works with both businesses and banks to establish healthy, profitable partnerships. We’ve teamed up with some of the best and most trusted banks from around the globe that willingly and happily take on the task of working with hard-to-place merchants.
But more than just our long list of partner banks, we also take the time to perform our due diligence to make sure that all of our clients are placed with a bank that’s ideal for their needs.
Shark Processing employs some of the most seasoned experts in the field, working to assess every aspect of your business to pair you with a bank that’s a fit for your venture. We also take the time to negotiate the best rates on your behalf so you won’t have to worry about steep processing fees for electronic payments.
There are lots of companies out there offering merchant account assistance in Russia. What makes Shark Processing any different? It’s simple — we’re invested in your success. Unlike other services that aim to make a quick buck by pairing you with any random bank they find, we take the time to guarantee an effective partnership with your growth in mind.
When it comes to your business, there’s no need to take risks with a merchant account specialist that can’t deliver. At Shark Processing, we value your venture and understand how important it is to you to guarantee the safety of your business every step of the way.
That’s why we don’t do shortcuts. We provide individualized solutions that are tailored to fit each distinct client so you can enjoy a partnership that was truly designed for you.
Shark Processing has been tried and tested by dozens of Russian high-risk merchant accounts, so why not take the shot? With zero fees and charges for your application and for Russian merchant account set-up, there’s nothing to lose when you choose Shark Processing.
Contact us today to find out more about our services, or expedite the process and move on through to our application form.
You must be logged in to post a comment.