Binary options & Forex firms are among the most strictly regulated markets in the world. In an industry where payment processing is vital to success, it is increasingly challenging to obtain payment processing accounts.
In late 2014, the National Futures Association announced a ban on funding trading accounts via credit cards beginning with January 2015. The restriction was put into play to address situations in which customers risk and lose large sums of money which were paid for with a credit card. Although transactions can still be funded via debit cards, it was a clear indication on where payment processing for the industry was headed.
Another recent event dealt a blow to binary options brokers in the United States. SpotOption.com, the highly influential binary trading platform that offers technology to the vast majority of brokers, decided that it will not accept customers residing in the United States. Although the reasons behind this decision have not been stated publicly, one can speculate that the reason is connected to the ever stricter regulations under which that binary options brokers have to operate.
The industry will surely fall back on its proven historical ability to adjust to the direst circumstances, and will find a way to survive in spite of setbacks. For example, Forex and binary option merchants may be forced to migrate to other trading platforms to maintain their American customers. And will find ways, including international merchant accounts, which enable customers to be able to easily and quickly fund trading accounts.
Creating a solid relationship with a credit card processor plays an essential role in maintaining the profitability of a trading business. While finding a trading platform has become recently more challenging recently, obtaining accounts from credit card processors has always been problematic for binary options and Forex merchants.
The difficulty of finding the right credit card processor results from the high risk associated with the industry. Binary trading can lead to either great gains or considerable losses. If traders are dissatisfied with an unfavorable outcome of trading, they may consider a chargeback as a means to obtain a refund, in spite of the fact that they do not qualify for it.
When it comes to chargebacks, the odds are stacked against you. It is notoriously easy for customers to file a chargeback,and banks often side with their customers, at your expense. Since a high chargeback rate introduces a liability that most credit card processors do not feel prepared or willing to handle, few processors and banks accept the industry type.
Still, card processing accounts are still available for the industry. In the US, informational services and software can get card processing accounts. Trading platforms are now moving to international merchant accounts for card payments.
Echecks are the most popular alterntive payment method in the US. Millions of Americans regularly pay for goods and services with electronic checks rather than cards.
When you accept electronic checks online, you give traders another convenient method to fund accounts. And give US traders an effective means of trading with you.
Internationally, add bank transfers and other localized payment options to get more orders. The more ways you accept funds, the more orders you will receive.
Forex and binary trading are popular throughout the world. Yet, to maximize profits, reliable payment processing is required.
US card processing accounts are available for binary options and forex informational and software services. Trading platforms that need card processing establish international merchant accounts.
Adding alternative payments to your checkout page gives customers another convenient way to fund orders. Accept electronic checks online for your US customers. Add bank transfers and localized payments for your international customers.
Are you interested in payment processing for binary options and Forex?
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