Panama Merchant Account

August 31, 2022

Statistics have found that in Panama, electronic payments are the most popular choice for shoppers both on and offline. To be exact, Panama locals use Visa and MasterCard most frequently to pay for their purchases. That’s why any business in the country would do well to adopt the technology and set up a Panama merchant account.

Intended specifically for businesses, a Panama merchant account is the doorway to accepting and processing electronic payments. With this type of bank account, your venture can expand its reach and increase customer satisfaction ratings all in one go.


About Panama Merchant Accounts

If you’ve ever tried paying for purchases either physically or virtually with your card, then you should have a rudimentary idea as to what a Panama merchant account is. As a bank account intended specifically for businesses, a merchant account in Panama serves the purpose of a storage facility for payments issued via debit or credit card.



Here’s how it works:

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  • Data is collected from your buyer. Once your buyer is done browsing and is ready to pay for their purchase, they start off the payment by offering up their information. For in-store purchases, this happens when they stick their card into a payment terminal. If they’re buying online, they have to manually key in their information through a digital form.
  • The merchant acquiring bank takes the information to a payment gateway. This merchant acquiring bank is the financial institution where your Panama merchant account is established. They take the information to the payment gateway for verification.
  • The buyer’s information is assessed. The payment gateway is a facility that exists on the end of the card issuer. It protects the account, so to speak, and makes sure that the transaction is legitimate. Information from the card is verified for correctness, and they also check to see if the buyer has enough funds in their account.
  • The account is debited. If all the information is correct and the buyer’s account has sufficient funds, then the card issuer gives your merchant acquiring bank the green light to perform the debit. They then subtract the amount from the buyer’s account.
  • Funds are disbursed into your Panama merchant account. The schedule of disbursal into your merchant account in Panama depends on what you agree on with your bank under your contract. The most common arrangement is to have all transactions funneled into your account at the end of the day. Some contacts can disburse immediately, while others require banks to release funds on a specific day of the week.

Save for the disbursal, all of these steps take no more than a few seconds. Buyers get immediate confirmation of their payment, and sellers can feel comfortable knowing that the money for the purchase is being held in a safe escrow on the side of the merchant acquiring bank.

Any fees for the transaction are also baked into the amount that the buyer sends. Rates vary for each individual merchant account in Panama, but the range stretches from 0.5% to 5.0%. That’s why some vendors impose a 5% ‘processing fee’ for credit or debit card payments, so as not to subtract from the amount of the products and services being purchased.


Who Can Open a Panama Merchant Account?

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To be clear, any business that wants to process and accept electronic payments can open a Panama merchant account. The process entails simply preparing your documents and taking them to the banking institution you want to partner up with.


Requirements change from bank to bank and depend on how extensive your relationship with the bank is. For instance, businesses that have an established record with a bank may be able to get approval faster because the institution already knows its business and its capacity to meet obligations.

On the other hand, there are businesses that can be met with challenges along the way. Some people will struggle to open up a Panama merchant account because of what’s called ‘risk’. A high-risk merchant account in Panama is simply an account that’s more likely to experience chargebacks or fraudulent activity.

When buyers ask for refunds, merchant acquiring banks take on the responsibility of reversing the transaction. And since no one wants to reverse a good payment, banks typically avoid partnering up with businesses that are more likely to get refund requests.

But what exactly are those businesses? Here are some factors that increase your risk rating:

  • History of frequent chargebacks over 0.9% of your total transactions (regardless of chargeback reasons)
  • Revenue in a month reaches US$20,000 or more
  • Individual transactions cost US$500 or more
  • Transactions from around the globe
  • Accepting payments in different currencies

  • Involved in a high-risk industry
  • Payments are recurring (subscriptions)
  • Most payments are issued online (card-not-present)
  • Both business and owner have low credit scores
  • Headquartered outside of the US, EU, Japan, Canada, or Australia

If a bank sees that your business ticks off most of the items on this list, then they might reject your application for a Panama merchant account. It’s important to point out however that some of these factors bear more weight than others.


For instance, you might only meet a few of the items on the list. But if they include a high-risk industry, then your business may still be regarded as high risk despite only ticking off two or three of the other qualifiers.

High-risk merchant accounts in Panama can be tough to get approval for. But if you get the right assistance, then there shouldn’t be a problem. And that’s where Shark Processing comes in.


What is Shark Processing?

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We’re a merchant account specialist that’s especially invested in assisting hard-to-place businesses in finding a reliable, reputable partner bank. We do this by working hand in hand with a long list of banking partners who are dedicated to giving all businesses an even chance at growth.

Our service is set apart from the rest by way of our ultra-fast turnaround time that gets you an approval in no more than a day. With the help of our team of professionals, we work round the clock to assess your business and handpick a partner that will work best for your needs.

We also make sure to get you the best rates possible. Lots of banks will charge steep fees and penalties for high-risk merchant accounts in Panama, but we work to lower those charges so you can enjoy the benefits of your new account without having to worry about exorbitant fees.

And if you’re not convinced yet, there are loads of other reasons to work with Shark Processing, including:

  • ZERO setup and application fees
  • 24-hour approval
  • Reputable banking partners only
  • Low rates and client-centered contracts

  • Safe and secure placement
  • Guaranteed approval for all businesses
  • Professional assistance and customer support
  • Easy application

Unlike other services that demand fees and payments prior to processing your application, Shark Processing provides placement services for no charge. So, when you submit your application to our humble office, you can be sure there’s nothing to lose.



Do You Need a Panama Merchant Account?

Sure, a merchant account in Panama might sound like a useful tool. But do you really need one? If you were still on the fence about setting up your merchant account in Panama, here are a few reasons why it might be exactly what your business needs:

  • Reach international clients – It’s time to go global. A Panama merchant account lets you accommodate card-not-present transactions from anywhere in the world. This means that if you can figure out a way to ship out orders from your offices to various other parts of the globe, then your international virtual storefront should be fully functional.
  • Seamless shopping – Buyers place a high value on a seamless shopping experience. So, if there are any parts of the buying process that calls for more effort than they’re willing to dish out, you might find yourself dealing with lots of cart abandonment. Panama shoppers use electronic payments as the number one payment method of choice. So, offering credit and debit card payment options just makes sure they won’t have a reason to leave their purchase unpaid.
  • Faster ship out – If you operate your business online, then most payment options may require manual confirmation. Some even post the next working day, so it might take you some time to ship out orders. But because electronic payments are confirmed on the spot, you can ship out orders much faster to keep customers happy with rapid order fulfillment.


Get Your Panama Merchant Account Approved in 24 Hours

With Shark Processing, you can say goodbye to rejection. Fast, simple, and secure, our services promise to get your Panama merchant account approved in just 24 hours. Contact us for more information on our assistance services and what we can do for you, or start your application by filling out our digital form. Because at Shark Processing, approval for your Panama merchant account is just a day away.

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