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

Regulation of Payment Institutions in Poland

In an era characterized by the intricate interplay of global economic networks and the ubiquitous presence of digital exchanges, the paramount function of transaction facilitators takes center stage. As a member of the European Union, Poland has scrupulously devised a multifaceted legal framework with the aim of enhancing the resilience, security, and fluidity of monetary...

Opening a payment system account in Canada

Canada is in list of most-developed countries in terms of fin-technologies and innovatory payment mechanisms. With its sustained economic environment and strict regulative basis, Canada attracts organizations wanting to get accounts in payment systems. Canadian authorities are actively supporting the progress and wide involvement of fin-technologies; it creates a benevolent basis for business-activities in niche...

General Data Protection Regulation (GDPR)

The General Data Protection Regulation (GDPR) is the EU Regulation No. 2016/679 dated 04/27/2016 “On the protection of individuals with regard to the processing of personal data and their free movement” and the repeal of the Directive on General Data Protection Provisions of the European Union No. 95/46. This algorithm began to operate on May...

Corporate tax in Hong Kong

Jurisdiction of Hong Kong refers to corporate tax as income tax, labor tax and tax levied on real estate. In general, this region of China is attractive for foreign entrepreneurs for the reason that it has a transparent and simple system of doing business. However, even the most democratic jurisdiction nevertheless imposes an obligation on...

Gaming license in Portugal

Portugal is a prosperous country that has proven itself as a good jurisdiction to start many enterprises. Now we will look at all types of gambling permits in country. Varieties of Permits Existent Permits The adjustment authorities have not established a maximum limit on the number of permits that can be issued. Qualification To be...

ICO in the UAE

An Initial Coin Offering (ICO), also called an Initial Token Offering (ITO), is a common crowdsale mechanism (collectively collaborating to pool financial resources to invest in a project) by selling crypto coins or tokens in exchange for virtual money (usually bitcoin or ether) or fiat currency. Early investors usually buy coins or tokens in the...

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:

Zurich

Dreikonigstrasse, 31A, Stockerhof
+41 435 50 73 23

Kyiv

Baseina street, 7
+38 094 712 03 54

London

Grosvenor Gardens, 52
+44 203 868 34 37

Washington

1629 K St. Suite 300 N.W.
+1 (888) 647 05 40 Toll Free

Vilnius

Gediminas Avenue, 44A
+370 52 11 14 32

Tallinn

Kesklinna linnaosa, Tuukri 19
+372 880 41 85

Edinburgh

Lochrin Square, 1
+44 203 868 34 37

Nicosia

Jacovides Tower, 5 floor
+371 665 550 51

Riga

Esplanade, 7 floor
+371 665 550 51

Hong Kong

18 Harbour Road, 35/F, Central Plaza, Wanchai
800938622 Toll Free

Singapore

Level 42, Suntec Tower Three, 8 Temasek Boulevard
+6531594300

Sydney

20 Martin Place
+61 2 888 00 365

Porto

2609 Avenida da Boavista
+351 800 500 206 Toll Free

Tbilisi

Revaz Tabukashvili Str., N 45, area N 7
+995706070360