The global forex market is one of the largest markets in the world. It has the potential to deal in foreign exchanges at all levels. Since access to the market is easy- with 24*7 availability, low cost market and significant leverage. Many of the young forex traders quickly enter the market but then quickly exit after facing losses and setbacks.
Learning about Forex is essential to a trader’s success. While it is a fact, that the majority of the trading knowledge comes from live trading and experience. A trader is required to learn everything about the forex market. It includes the geopolitical and economic factors that affect trader’s preferred currencies.
Eventually, a FX merchant will require a Forex Trading Merchant Account so that they can easily accomplish the payment transaction that goes through their business.
The wrong ways to choose A Forex Merchant Account
Make sure you select a high-risk processor when looking for payment processing for forex. Because selecting a low-risk option like Paypal could lead to account termination.
It happens far too frequently to not educate oneself about payment processing or to not have a team member do so. Unfortunately, if you don’t know how to interpret a credit card processing statement, this could lead to greater expenses for your company.
Last but not least, be sure to look for indications of excellent customer service on the payment processor’s website with high-risk merchant account. You ought to see a statement like “24/7 customer service.” It may be a hint that a business is one you don’t want to partner with if you can’t discover a contact email or phone number.
Instant account approvals are typically not a beneficial thing in payment processing outside of convenience, therefore selecting an alternative that offers them might also be a mistake.
What is a merchant account for Forex?
Customers can purchase several types of Forex with a credit or debit card by opening a Forex payment gateway. The following factors are the main reasons why most merchant account providers view currency exchanges as high-risk:
Significant volatility: The market for FX is notoriously unstable, frequently experiencing unanticipated price rises and losses.
CNP transactions, or card-not-present transactions, denote purchases made with a credit or debit card that was not physically present at the time of the currency purchase.
FX has the potential to be used in money laundering because it is not backed by a centralized body and has no physical presence.
The impact of credit card fraud on online retailers
Because we are making more purchases online, online sales for eCommerce businesses are consistently rising.
The risk for credit card fraud is enhanced with higher sales, which is the flip side of the coin. The added risk has a bad effect on customers, online retailers, and payment processors.
For instance, the consumer first contacts the bank when an unlawful transaction is performed using a hacked credit card. The bank then starts a chargeback, freezes the money, and makes a request for more details.
The expense of starting a chargeback is borne by the merchant. Plus, businesses with a high rate of chargeback are labeled “risky” and may have access to their merchant accounts restricted. If their merchant accounts are not held with high-risk merchant account processors, this is considerably more likely to happen.
When goods that have been fraudulently purchased are dispatched to clients before a chargeback is started, eCommerce merchants also suffer losses. This is common, especially for eCommerce retailers who offer speedy shipping. The merchant usually bears the financial burden because the fraudulent customer rarely returns the item(s) they purportedly purchased.
How to lessen credit card fraud as an online retailer?
Merchants must be ready to reduce the risk of possible fraudulent transactions given the rise in credit card fraud. Here are some steps you can take as an online retailer to safeguard your clients and keep credit card thieves at bay.
Select a dependable payment processor. Your selection of a payment processor is your most effective tool as an eCommerce merchant for reducing credit card fraud. Pick a PCI-compliant payment processor that includes CCV, address verification, and other fraud prevention tools.
Purchase an SSL certificate. It is crucial to obtain an SSL certificate in your name because it aids in the security of your payment page.
Evaluate unusual declines manually. Perform a manual check for several refused payments on the same card to see if any odd patterns are showing up. Do different payment addresses come from the same IP? If so, this raises a big red signal and shows you shouldn’t complete the transaction.
Review the volume of your transactions. Unaccounted-for high volumes of transactions occurring quickly could be a sign of organized fraudsters trying to utilize stolen cards on your website.
Install 3-D Secure. If you haven’t already, turn on 2-factor authentication for each transaction since this can assist shield you from liability in the event of a chargeback.
The worldwide forex market is lucrative to many traders because of the low account requirements, 24*7 accesses to the market, and high amount of leverage. Though, if it is approached as a business, then Forex trading can be profitable and rewarding, chasing success in this field can be a difficult task and at the same time can take a long time. However, traders can choose to improve their odds by taking steps to avoid losses; doing research, involving sound money management techniques and accepting forex trading as a business. A Forex Trading Merchant Account will accelerate the process of accepting online payments for your FX business. Get a merchant account to start accepting payments for your FX business.