Open a Merchant Account

Tariffs for opening merchant accounts:

The procedure of opening an account can be completed quite quickly, a merchant account can be opened in just a few days. Moreover, such an ideal scenario is possible in any country in the world, including Russia. However, for this, the company, its management and the bank must meet the following requirements:

1. The bank has an appropriate processing licence
2. The company is engaged in a standard, well-known business
3. The business is low-risk and permitted
4. The business is completely transparent from the moment of its foundation, all taxes are paid
5. The connecting company has all the necessary licences
6. The activity has been carried out for a long time, the financial performance is stable
7. Commercial activity is carried out only on the territory of the state of registration
8. The company and the acquiring bank are located in the same country
9. The company’s website contains the necessary user agreements
10. The company’s website is well-made and designed, the code is valid
11. The content of the website does not go beyond the scope of the main activity
12. A user support service has been created and is functioning

If you do not meet at least one of these requirements, opening an online merchant account becomes much more difficult.

The fact is that the issuance of each merchant ID and the opening of each online merchant account are risky operations for the bank. The bank risks its reputation in payment systems, risks its processing licence – if instead of a respectable online store it connects sellers of prohibited goods, the consequences can be catastrophic. Therefore, as soon as a request to open a merchant account is received, the bank launches a set of measures to check its client.

Open a Merchant Account

Bank Requirements

In addition to questions directly related to the business, the biographies of the legal entity’s owners and directors, credit histories and the origin of funds are verified. To this end, enquiries are made with other banks and government organisations. The aim is to identify facts that would indicate that the applicant company is unreliable.

It is important to understand that opening a merchant account is not a formality, and that banks are proactive organisations for whom it is very important to weed out dubious counterparties. And if a mistake is made at the time of the crucial first application, the subsequent negotiation process can be difficult.

Typically, if suspicions arise, bank representatives express a desire to hold a face-to-face meeting with the business owners, and a requirement for a security deposit of EUR 10,000 or more appears in the terms and conditions for opening a merchant account. Often the negotiation process simply ceases. Therefore, it is essential to proceed correctly from the outset.

Merchant Account

Connection Algorithm

Fortunately, many banks operate in a similar fashion. By understanding their behaviour patterns, one can prepare in advance and practically guarantee the successful acquisition of a merchant account ID. Since conducting online business on behalf of a Russian company is extremely rare, and using a merchant account with Russian banks is not economically viable, we will consider the typical requirements of a reputable foreign bank for an offshore company.

If your organisation is registered in an offshore jurisdiction and has not previously conducted commercial activities, in 90% of cases the bank’s requirements will be as follows:

• A comprehensive business plan in English with the financial section using UK accounting terminology
• Demonstration of a working company website, the quality of which and the level of detail clearly indicate that it is a genuine business website
• Presence on the website of all user agreements in English necessary for conducting the business activities stated in the business plan
• Provision of apostilled copies of the certificate of incorporation, memorandum and articles of association, licence to operate, founding agreement, and other documents, the final list of which is determined by the bank itself
• Provision of detailed information in English regarding your chargeback policy
• Description of your system’s capabilities in filtering fraudulent payments
• Provision of evidence of an English-language telephone customer support service
• Provision of copies of the company director’s and beneficiaries’ identity documents
• Provision of proof of financial solvency of both the company and the business owners
• Disclosure of the expected monthly turnover and average transaction value
• If the business has been operating, the following may also be required for an internet merchant account:
• References from industry financial institutions or banks
• Copies of recent tax returns (depends on the expected sales volume through your merchant account)
• Credit history of your company and/or personal credit history
• If the business has been operating, the following may also be required for the internet merchant account:
• References from industry financial organisations or banks
• Copies of recent tax returns (depending on projected sales volume through your merchant account)
• Credit history of your company and/or personal credit history

Offshore merchant account

Our company is a counterparty to many foreign and offshore banks. We have agreements in place to open merchant accounts in offshore jurisdictions (offshore merchant account). We are ready to assist our clients in organising payment acceptance in the most complex cases.

To do this, we:

• We will select the optimal bank and processing company specifically for you
• We will prepare the necessary licences, statements, certificates and other documents for you
• We will provide recommendations for your business from the point of view of international law in the IT field
• We will conduct negotiations with partner offshore banks and processing companies
• We will register offshore legal entities for conducting online business
• We will negotiate the possibility of billing with any chargeback rate
• We will select a suitable taxation and accounting scheme
• We will develop a legal strategy for conducting international online business

Dear Sirs,
We solve a variety of tasks, including the establishment of our own bank with a processing licence. However, this does not mean that we would not take on the merchant onboarding of a fledgling online shop. We operate with a highly individualised approach, are focused on long-term partnerships and are open to discussing any collaboration schemes. Please do not hesitate to contact us.