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Today, banks are reluctant to work with companies and non-resident citizens who permanently reside abroad and do not have citizenship of the country whose bank they applied to. Making a deal with such a bank and being able to open an account is a long and difficult job.
That is why an alternative service appeared on the market, which allows to avoid the process of opening a bank account.
The payment system is a key part of the modern monetary system, providing an opportunity to provide money transfer between individuals and legal entities.
Eternity Law International cooperates with more than 30 payment systems operating worldwide.
The payment system is a company whose job is to ensure the exchange of funds within the economy and across national borders between the participants – private and legal entities. This is the basis of the laws, rules, mechanisms, systems, procedures and agreements that govern payments.
It is noteworthy that the payment system is not a bank, but an organization engaged in the provision of financial services with an appropriate license.
Payments can be classified at high and retail value, taking into account the cost of the payment and the type of party that initiates the transaction.
Large payments tend to be high-value payments made by financial institutions, while retail payments are made by individuals and have a relatively low cost.
In different payment systems, an account is opened in different ways. Some organizations provide the opportunity to open an account through a meeting with the head of the company, others through customer identification online or by exchanging emails.
To open an account, a company must provide a registration document and a charter, may also require additional papers.
By the way, not every organization will work with clients representing risky operations (for example, firms engaged in the sale of excisable goods or online casinos).
The advantage of payment systems is that they can open a multi-currency account, with which you can make payments using multiple currencies to most countries of the world. This function is relevant for entrepreneurs working at the international level.
Also, this service is suitable for online stores and companies that provide an opportunity to make payment for goods purchased directly on the organization’s website, opening a “merchant account”.
It is important that the account in the payment system is created in order to make payment, transfer of funds. Many payment systems provide a full range of necessary services needed by both individuals and legal entities.
The advantages of opening an account in the payment system:
– customer identification is more loyal;
– the possibility of opening a multi-currency account;
– more favorable rates for services and transactions;
– the account opening procedure takes several hours or days, depending on the system;
– round-the-clock payment;
– issue of cards VISA, MASTERCARD and others;
– creation of universal, registered or payroll cards (relevant for international companies that pay salaries for employees from different countries)
ability to connect merchant account.
Cons of payment systems:
– some systems provide the ability to open an account with one currency;
– some systems offer only SEPA transfer (only euro) or SWIFT (only dollars) and do not work with transfers in other currencies;
– in case of positive and successful identification, additional documents may be required, without which the account will have limited functions;
– The provision of an account identification number (IBAN number) in some systems is impossible; without it, the payment will be sent to the general account, and already within the system – to the desired one.
It is difficult to find a good payment system and open an account on it, without understanding the peculiarities of the client’s business and the jurisdiction of his company. It is necessary to calculate which currency will be used, which type of account is needed, with whom the organization will cooperate, and what turnovers.
Also, it is necessary to find out if the company providing the service to open a payment account had any problems with financing or customer support.
Creating a payment account is not a difficult task if you contact our specialists, who will answer all your questions.
The international company Eternity Law International provides professional services in the field of international consulting, auditing services, legal and tax services.