- February 4, 2020
- Posted by: admin
- Category: Forex Merchant Account, Uncategorized
$1.93 quadrillion worth burgeoning industry of foreign exchange, commonly known as the forex industry, is the most liquid market in the world. There are more than 170 different currencies that are traded and 4 million retail traders globally. In recent years, technology has played an important role in the development of the foreign exchange industry and its major impact is on the mode of payment. As the forex industry is a high risk business it requires a safer and faster payment processing system.
Foreign Exchange Industry is a huge virtual market where the currencies of different countries are bought and sold. In simpler words, various national currencies are traded at the price determined by the market. The price determined is known a foreign exchange rates. This booming virtual industry has no centralized location. Forex industry is an OTC i.e. Over-The-Counter market for trading. It basically has banks, brokers, institutions and individual traders trading over electronic networks.
Foreign exchange gives you a platform for converting one country’s currency into another country’s currency. To make the exchange of currencies successful forex trader needs a payment processing system. Choosing a befitting payment processing system for your forex business is an important decision because it makes a significant impact.
Standards which should be met by a payment processing method
While choosing a payment processing method for your forex business make sure it meets the following basic standards:
- Acceptability: The payment processing solution you are using must be globally accepted. Foreign exchange deals across the border so your payment method should be widely used by traders and brokers. The ubiquitous nature of payment gateway is a must for a smooth transaction and lesser delay.
- Security: Frauds and scams prone industry requires several layers of security to secure the payment details, identification data of users and obviously amount traded. The spot forex market trades over $5 trillion a day, this volume of money attract many fraudsters. So, the movement of money should get a security guarantee from the payment processor.
- Legality: A lot of payment options and providers are available in the market and many of them may claim 100% security and other attractive offers but remember everything that shines is not gold! The payment method must be legal. Try to find out everything about the payment gateway and its provider.
- Customer care services: Your payment processing system should provide customer services to help you 24/7 and answer all your queries. Customer care services make overall transaction experience better.
- Time-saving: Go for that payment method which doesn’t take much time to complete the transaction. What is the use of such technology if it cannot give you instant services?
The most popular mediums available in the market are:
· Bank wires
· Credit/debit cards
· Digital wallets (Skrill, Neteller, Unipay, PayPal, etc.)
Bank wire and other offline payment methods are often more expensive and time-consuming than other forms of payment. In fact, the forex industry is labeled as high-risk industry by many financial institutions so they don’t easily approve forex traders. By adopting any offline method you might end up paying both broker charges and bank charges. Another drawback of this payment processing system is that in case you got trap in any scam then it is next to impossible to get your money back.
Another new concept in the market is e-Wallet or digital wallet. Though it is quick and easy to use it is not fully available worldwide. Maybe in the future its user will increase. Also, this payment processing system is completely based on your phone. If you don’t have your phone while making a transaction then you won’t be able to complete it. It may also charge you more to process a payment.
The most popular Forex payment method is using a credit/debit card. Almost all reputable Forex brokers accept them. If you are a forex broker or dealer who wants to fund their trading accounts from their clients then you need a high-risk forex merchant account. Forex credit card processing account allows you to accept payment online via credit and debit cards. You definitely need a fast and effective solution and the forex merchant account is the answer to all your questions.
Let’s discuss more about high risk forex merchant account, how it impacts your forex business and why forex traders should get a merchant account.
High-risk forex merchant account
A merchant account is a type of online account that allows your business to accept payments via debit or credit cards. Retailer, a merchant bank and payment processor make settlement of credit card/debit card through an agreement finalized by them for a merchant account. While there are businesses that are at higher risk than others like Foreign Exchange business. Such businesses have to go with a high-risk merchant account
If you’ve decided to enter into forex trading or you are already a trader then you must become familiar with the risks involved. Risks like fluctuations in the foreign exchange rate in the market, prices moving in unfavorable directions and leverage risk occurred because of low margin which permits high leverage, such kinds of risks are not really in our hands all we can do is to keep a keen eye on every small movement in the market. But apart from these risks, there is a major risk that is finding an authentic payment solution.
Main reasons why forex industry is labeled as high risk in payment processing and how a high-risk merchant will help you to cope up with them, are as follows:
- High average transaction amounts: There are many transaction fees involved in foreign exchange that’s why foreign exchange companies earn high income on each customer. Transactions in the forex industry are usually high as it deals internationally. Considerable high average transaction amounts make forex industry high risk because any fraudulent activity or chargeback may cost very high to cover. High-risk forex merchant account allows your forex business for generous volume caps and gives you the ability to process high volume sales.
- A very high volume of chargebacks: Major numbers of forex brokers are facing the problem of the high volume of chargebacks. All types of business face chargebacks but industries like the foreign exchange industry are likely to attract a high volume of chargebacks because of its wide range of transactions across the globe. Merchant account providers help you to control chargebacks by providing security tools and proper monitoring guidelines.
- Fluctuation risk involved: There are uncertain constant currency fluctuations for forex traders which makes it risky. High risk merchant account makes sure that you overcome any loss easily and your business’ long term goals meet.
- You are an international merchant: Foreign exchange deals in multiple currencies like U.S., Japan, India, Canada, China or any other country this makes your business high risk. A good merchant account will help you to deal with international transactions easily.
- Security from frauds: Foreign exchange is prone to frauds which makes it a high risk industry. Recently, many cases of fraud brokers as well as from forex brokers were reported. A high risk forex merchant account will give you an extra layer of protection by regularly employing detection methods during the exchange. Different secure techniques will protect forex business and trader from frauds and theft.
To run a forex business efficiently forex traders should select a merchant account as a payment solution. High risk forex merchant account not only allows you to make payment online via debit/credit card safely but also gives you expert guidelines to expand your business. IPayTotal, with a decade of experience and professionals, has made its name in the market and stand out as a strong competitor. . IPayTotal provides a high-risk forex merchant account which accepts more than 100 currencies in over 196 countries. 24/7 customer service is also provided to the customer for solving all the queries. As the foreign exchange industry is a high-risk industry, iPayTotal understands and provide a comprehensive solution for forex trading.
Enjoy trading and earn in six even seven figures