Eternity Law International — News — What do you need to open a merchant account

What do you need to open a merchant account

Published:
April 20, 2017

A merchant account is a needed option for many entrepreneurs, but not everyone is aware of what it represents. This account enables customers to pay for goods and services directly on the website of the company. To transfer funds using banking cards.

Particularly relevant the opening of accounts will be for organizations, leading their activities only through the world wide web. In this case, you should consider opening multiple accounts. The main function of merchant accounts is the growth of sales.

If we consider the technology in details, a merchant account is a special identification code of the client in a single system of electronic payments. This system integrates financial and transaction processing organizations, so it is possible to conduct transactions online. This number is issued directly by banks, which are included in the payment system.

The merchants for financial institutions are equivalent to credits. A feature of such accounts is the fact that the money deducted from the card of the buyer, are transferred to the merchant only in a few days. By itself, the Bank can withdraw the money only after the end of the reporting period.

Today, there are dozens of choices for merchants. You can open an account in the US States, in Britain, in Germany, in Ukraine, in all other countries. In this diversity lies the problem: what kind of merchant would be best. How to choose the account that’s perfect for your business?

And if it is associated with high-risk transactions, then the problem takes on even greater urgency. For example, if you trade on the stock exchanges, or open your own betting shop. Therefore, the choice of the merchant should take into account the specifics of the business.

How to choose a merchant?

In order not to miscalculate the choice, you need to take into account several factors. We consider them in details.

1)  In what country the Bank should be registered?

2) What is the currency you plan to work with?

3) What are the conditions for a chargeback?

A Chargeback is a feature that allows returning the funds deducted from your account illegally. It is necessary in case attackers managed to steal information from your card, or other fraudulent actions that lead to the loss of the money from the account.

It is important to know that post-Soviet States refer to the list of countries with an increased risk of major payment systems. Therefore it is recommended to refuse the payment if there are certain doubts.

European and American processing companies and financial institutions closely monitor the level of Chargeback operations. Allowable amount is no more than 3%, otherwise, banks can apply sanctions, or even refuse to cooperate. All these provisions must be specified in the contract specifying the maximum level of Chargeback operations.

4) What is the optimal percentage and term of the reserve fund?

First, you need to understand what is a reserve fund. It is a special part of the funds that are not intended for circulation. In other words, it is a frozen percentage of the amount stored on the merchant. Standard percentage of the reserve fund is 7-10% of the turnover amount for the first six months of activity. After a six-month period, the allocations to the reserve fund are terminated and the account holder has the right to fully use all the money saved in reserve accounts.

The described percent and terms for different financial institutions may differ significantly, so this point must be agreed.

5) What is the maximum amount of transactions to enter?

6) How much money can you withdraw per day or per month?

7) Is there a daily or monthly transaction limit and what is it?

8) How much money will be charged monthly or annually for account maintenance?

9) What is the size of the commission for incoming and outgoing transactions?

10) How to withdraw money from the account?

The last question we also dwell. In this case, you need to know if you can transfer money to another trading account or transfer them to your partner.

Did you manage to answer these questions? Based on the received information you need to select a merchant account. For example, if you intend to work with the US or the UK, it is recommended to stop at PayPal.

What will it take to open a merchant account?

To open a personal merchant, you will need to provide the following information and documentation:

  • the current account in a financial institution;
  • certificate of state registration of the company, Memorandum of Association, license, Charter;
  • the Internet address of the website of the company;
  • information about the refund ways in the company;
  • recommendations from the industry companies;
  • photocopy of the passport.

All the information is provided to the bank for obtaining information about the applicant and verification of the company legality.

Requirements for the payment form

There are specific requirements for the payment page. You will need to create a special form that includes the following information:

  • user data;
  • name/surname of the user, as indicated on the card;
  • telephone number;
  • e-mail address;
  • place of residence;
  • postcode;
  • the destination of the payments

Our specialists are ready to help you with opening and connecting to a merchant account in any country of the world. We will help you to choose the best option and will perform all the necessary operations, you will receive the result without any effort.

Eternity Law International specialists will provide you with expert advice on opening a merchant account in a suitable jurisdiction.
If you have any questions or need advice on opening a bank or merchant account, call us at the numbers on the website or write in the CRM form at the bottom of the page.

You could be interested

BANK ACCOUNT FOR ICO

By the number of users of Bitcoin Ukraine is in the TOP-10 countries of the world, despite this, to establish a company for the development of crypto business and properly build financial flows is quite difficult, since the legal status of electronic currency has not yet been determined. The only document on the basis of...

Swiss asset management companies after the transition period to FINMA

In line with the Swiss law, entities providing asset management services are necessitated to acquire special permission from the regulative authority FΙNMA to continue running their operations. FINIA sets a period to transit (3 years) for Swiss asset management companies that delivered their services prior to 2020 to send their requests. However, this timeframe expires...

Offshore bank license in Cayman islands

The Caymans have acquired the status of an important financial center in their region. Despite their compact size, many banks and financial institutions, including international ones, are concentrated here. In recent years, the islands have become a popular location for digital asset businesses, attracting numerous cryptocurrency exchanges and other firms in the space. Despite its...

PI license in the Czech Republic

An authorized payment institution (API) in the Czech Republic is the perfect solution for pan-European and trans-border payment processing. It facilitates processing payments and money transfers of private individuals, companies, and internet merchants. To ensure the proper operation of such institutions and the protection of customer funds, the EU PSD entered force in 2007 and sets...

International exchange of tax information

International exchange of tax information within the framework of BEPS. Globalization, which has marked the 21st century, has revealed many problems of some separate states. Moreover, one of the most important and significant was the problem of creating so-called offshore holes, where significant financial assets can be hidden, regardless of their origin. First time they...

Redomiciliation of companies in the Marshall Islands

The re-domiciliation of companies in the Marshall Islands is a pressing issue. You should not close your offshore company if it no longer brings you income, but, on the contrary, has become a source of additional problems. You will be able to use the company for many more years and make a profit. All you...

Related posts

How to open a Merchant Account?

Online trading has become quite popular lately. This means that stores need to acquire payment acceptance systems. Some online companies use the services of intermediaries or aggregator systems, but there are also stores where payment is only possible through electronic wallets, such as Yandex.Money, Webmoney or QIWI. Moreover, this does not suit all clients, but...

Open an offshore bank account

Open an offshore bank account – why do you need to open it today? Most of legal entities and individuals use internal bank accounts. In some cases, this is sufficient for making payments. However, if you are serious about international investing and pay special attention to protecting your savings, then it is not recommended to rely...

Open a bank account in Poland

Poland is a very perspective country both for traveling and providing services. So we prepared a short guide with the main information for the bank account opening. Required documents The requirements differ to the residents and foreigners. If you have Polish citizenship the procedure is fast and simple. You need to check a bank policy...

Open a bank account in Estonia

Estonia is one of the most stable countries in the European Union. For the last years the government here introduced some changes into the financial sector regulation. Among them, we should name an electronic system of interaction with the authority. Also, Estonia is situated near developed European countries and can become a launching pad for...

Open a bank account in Cyprus

Cyprus is the most attractive country for business registration. It proposes low taxation, simple procedures for incorporation and subsequent business management and stability in politics and law. If you plan to form your company in Cyprus, you have to open an account in one of the local banks. It will be a profitable investment, as...

Why do you need a merchant account?

A merchant account is a specific account that allows you to make payments for goods and services directly on the website of the company. The organization that has registered the merchant receives its own identification code, which helps to allocate it among a huge number of enterprises on the entire planet. This code is present...

Discover our services

The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.

Ready-made companies for sale

Companies with a bank account around the world

Banks for sale

Established Banks for sale

Ready-made licenses for sale

Forex, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Licensing

Forex licenses, cryptocurrencies, gambling, EMI, PSP, SVF, MSO, DLT

Offshore company registration

Expert advice on the acquisition of an offshore company

Open a bank account

Open bank accounts in more than 120 banks around the world
Fill the blank: