Different Overseas Merchant Accounts Processing Requirements and Solutions for Different Scenarios
There are different merchant account processing requirements for low to high risk scenarios, especially when applying for overseas merchant accounts. Low, medium and high-risk situations will get you various solutions accordingly.
Risk is measured by various parameters. From the rates to deposits requirements and from fees to rolling reserve, all of these are determined according to risk assessment. The following are some of the factors taken into account for determining the risk level. These are not all of the factors, but just the main ones that can give you a fair idea. Different banks have different criteria for judging risk factor, but the following are the common ones adopted by all:
- Financial History
The financial history of an applicant is taken into account first of all. It is a major factor and plays an important role in determining the risk level.
- Business Registration
The country of business registration is another point taken into account to determine the risk level.
- Directors/Shareholder’s County of Residence
The county in which the directors and the shareholders of the company are residing is also taken in consideration while assessing the risk level.
- Processing History [Past Record]
- The Processing Experience [History of a client’s business]
- Know-how of Business Principals
- Disclosure and Accessibility of Customer Service
- Volume Projections Business and Processing
Overseas merchant accounts can provide you with lenient laws in some cases and anonymity. But as the overseas remittance is comparatively higher as compared to wire transfers within a country, an overseas merchant account has its disadvantages. Some banks want your physical presence for opening and closing an overseas merchant account.