Merchant Account Thailand

August 30, 2022

Card payments reign as the second most preferred payment method in all of Thailand. So whether you’re operating online or through a brick-and-mortar, now would be the perfect time to set up a merchant account in Thailand. This essential business bank account is what allows businesses to take payments from credit and debit cards.

Not everyone fully understands what a Thailand merchant account is or how it works. But getting the full picture can help you better understand how the merchant account can help you and what you can do to maximize the benefits of the financial product.


Understanding Thailand Merchant Accounts

A Thailand merchant account is a specialized type of bank account that’s established specifically for businesses. These accounts get funded whenever buyers issue payments via credit or debit card. Much of the process is performed by the merchant acquiring bank where the account is established.


Here’s what the merchant acquiring bank does when a buyer initiates a payment via card:

  • They collect information. Of course, they need to make sure they locate the right account to debit. For in-store purchases, the bank can collect data by asking the buyer to insert their card into a point-of-sales terminal. Online, data collection happens when the buyer inputs their card info through a digital form.
  • They take the information to a payment gateway. This secure facility protects the accounts on the card issuer’s end. For the gateway to open, it needs to ensure that all of the collected information is correct and that the buyer’s account is sufficiently funded for the transaction.
  • They collect the payment. If the payment gateway confirms that all of the information checks out and that the buyer’s account has enough funds to pay for the purchase, the card issuer gives the merchant acquiring bank the go signal to take the money out of the buyer’s account.

This is then held temporarily in an escrow under your merchant acquiring bank. Depending on your contract, disbursal to your account can happen on four different schedules:

  • Immediately after the process is completed
  • At the end of the day
  • Once a week on a day of your choice
  • Any other schedule agreed upon by the business and the bank


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Are There Fees for Using a Merchant Account in Thailand?

Yes, of course, there are fees. Your merchant acquiring bank earns off of the service by charging every electronic payment they process for your business. The rates aren’t set in stone and fluctuate widely depending on a number of factors. But statistics suggest that they’ll rarely go under 0.5% or over 5.0% of the transaction’s total cost.

This amount is included in the grand total that your buyers pay. So they’re not going to see it in the price breakdown. For instance, if the products or services they’re buying cost more than US$100 (inclusive of taxes, shipping fees, and other purchase-related charges), they’ll pay just that.

Ultimately, the merchant acquiring bank takes their cut from your supposed profits. So to offset that deduction, some businesses may impose a ‘processing fee’ for credit and debit card purchases amounting to the percentage of the purchase that their merchant acquiring bank is set to deduct.


Aside from the charges for the processing of electronic payments, your acquirer will also impose penalties on chargebacks. When buyers request a refund, your merchant acquiring bank bears the brunt of the payment reversal. And since no one wants to return a perfectly good payment, banks clap back with sky-high charges on refunds.

According to surveys, an acquirer can charge between US$20 to US$100 for every chargeback, depending on several factors. The more chargebacks you incur, the higher the rate goes. In some cases, a contract might even be automatically terminated if a business breaches an indicated chargeback limit.

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What are High-Risk Merchant Accounts in Thailand?

A high-risk Thai merchant account is essentially an account with a higher likelihood of chargebacks. Banks are conservative and are careful to engage in business with clients who might turn out to be a liability down the line. So they look into a range of factors to anticipate the potential risk of dealing with a specific business.

Here’s what can make your business high risk:

  • Located outside of Canada, Australia, Japan, EU, USA
  • Upwards of US$20,000 in monthly revenue
  • Most transactions cost more than US$500
  • International consumers and clients
  • Payments accepted in different currencies

  • Involved in high-risk industries (see here)
  • Recurring payment structure
  • Low personal and business credit scores
  • Deals mostly with card-not-present transactions

Businesses that tick off most of the items on this list will be perceived as high risk since these factors can significantly increase the chances of buyers asking for refunds. That also means that Thailand’s high-risk merchant accounts can struggle to get approval from banks, no matter how many applications they might send out.


How to Apply for a Thailand Merchant Account

Most businesses will have no issues opening a merchant account in Thailand, especially if their acquirer already knows them. That’s because banks take their time to fully understand their clients and who they are through a process called know-your-client or KYC.

So if you’re applying for a merchant account in Thailand, you’ll be required to submit a range of documents and paperwork to help the bank get the full picture of your business and who you are.

If you’re dealing with a bank that you’ve had a partnership with before for whatever account or service, then it should be easier to get approved. In fact, most low-risk businesses can get approval for their Thailand merchant account in as little as 15 minutes.

But then again, the story isn’t the same for everyone. High-risk merchants in Thailand can struggle to get approval after multiple tries simply because banks don’t usually prefer working with high-risk clients. In fact, even businesses categorized as moderate-risk merchants can still be met with rejection.

If that’s the case for you, it can feel pretty hopeless. But you can still get that coveted approval by turning to the right providers. At Shark Processing, we offer tailored assistance to business owners hoping to open a merchant account in Thailand but just can’t seem to find the bank that will approve their application.

image of how to apply for merchant account in thailand

Who are We?

Shark Processing is a merchant account specialist that’s particularly invested in finding the right placement for high-risk merchant accounts in Thailand. We do this by working together with reputable banking institutions from all over the globe who are willing and happy to sign contracts with hard-to-place merchants.

Our team works to carefully assess all of the applications that come through our virtual doors so we can assist our clients in finding not just any random bank that will say yes — but the perfect banking institution for their needs.

As expert matchmakers, we ensure to examine every aspect of your business to make sure you’re getting partnered up with a bank that’s set to see you through to monumental growth — whether on or offline. We work carefully with all of our clients to ensure low rates and flexible contracts that keep your best interest at heart.


How to Apply With Shark Processing

Rejection? Long waits? Unanswered emails? You won’t find them here. At Shark Processing, we understand how disheartening it can be to get your application declined, especially after having put so much effort into the process. So we streamline the whole experience to give you comfort and confidence every step of the way.

  • Fill out our pre-application form. No need to share sensitive details — we want you to feel secure. Our pre-application form asks for just the basics so it’s easy to fill out and you won’t have to worry about sharing sensitive particulars.
  • Wait for us to contact you. Our team works round the clock, so you should expect a call just a few moments after submitting your form. Make sure you have other important details and documents ready to support the application process.
  • Let us do the work. Just sit back, relax, and we’ll do the rest. With all of the important information in our hands, we’ll get to work to find you a banking partner that will give you the best shot at seamless electronic payment collections.

We work fast, so you can expect to get your approval in just 24 hours or less. We also negotiate rates on your behalf, so you can enjoy affordable charges and fees to go with your fresh new merchant account in Thailand.

  • Fast results
  • Proven outcomes
  • Professional staff
  • Low rates
  • Flexible contracts

  • Tailored solutions
  • Easy application
  • Guaranteed placement
  • Safe and secure

image of shark processing logo

Contact Us Today

We know how hard it can be to place your business in the hands of a service you can’t trust — so we scratch out the fees to prove just how dedicated we are to your growth. Shark Processing charges zero fees for application, placement, and set-up, so when you work with us, you can be sure there’s nothing to lose.

Contact us today to get approval in 24 hours, or start out by filling out our pre-application form and waiting for our friendly staff to reach out to you. Because here at Shark Processing, approval is just a day away.

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