The Foreign exchange market is the biggest liquid financial market in the world. More than a dollar five trillion transaction takes place in a day. As a result, it has attracted the attention of millions of brokers around the world. There is no centralized foreign exchange market, so most of the transactions take place electronically. Brokers can only receive payment from their clients if they have a valid merchant account.
To get a merchant account within an instance, the brokers must have valid documents and contact an acquiring bank to tie-up their business. The payment processing gateway generally works when you have a valid merchant account.
Some of the payment processing system that is often accepted in the market includes that of Visa and master credit or debit cards alongside the E-wallets. Most of the payment processing gateways are designed in such a way that they can deal with high volume of currency transaction in a single day. At the same time, they offer seamless processing and quick disbursal of the amount from client’s account to the broker’s merchant account.
The FX trading generally deals with multiple currencies. As a result, the payment processing gateways work without any hassle. Generally, payment processing gateways are approved to all the established brokerage companies since they deal with large transactions at once. They make the process of approval and setup worthwhile for other financial institutions like bank and payment processors.
To run your brokerage business properly, you need to present some financial documentation to the acquired bank. It prevents fraudulent and money laundering activity. A successful FX payment processing works when it comes up with an anti-fraud and anti-money laundering filter. The filter traces any kinds of fraudulent transactions and prevents it at once.
The payment processing gateways help all the brokers to accept payment from their clients within an instance. Most of the gateways work on a secure data transfer with PCI level 1 compliance so that the credentials of your merchant account are not visible publicly. They also offer fraud scrub technology to prevent fraudulent activities. Furthermore they also come up with chargeback prevention measure. It helps you to prevent unwanted chargeback that are often incurred by the brokers.
Some of the benefits of payment processing gateways are as follows:
In conclusion, payment processing gateways deal with a large volume of transactions and integrate all kinds of payment wallets.