Posted by admin on Apr 10, 2013


international merchant, international merchant accounts, global payment processing, high risk merchants, high risk merchant accounts

To protect cash flow and liquidity, companies with high volume merchant accounts or in high risk processing categories are participating in a unique banking network.  The network provides access to multiple direct banking relationships for payment processing through a single platform.

Overview of Payment Processing through the Bank Network

The payment processing network is comprised of banks, located throughout the world, including USA, Europe, China & Asia, Middle East, Russia, and more.  All banks are connected to a single processing platform.  One plug in to the network gives access to all the banks, making it easy to quickly diversify payment processing accounts.

The network is available only to high volume merchants.  Participation in the network requires payment processing history of at least $500,000 per month.  Most merchants process much higher volumes.

The large number of banks in the network assures companies with high volume merchant accounts virtually unlimited transaction processing capacity, without caps on credit lines. Since banks are located throughout the world, business can take advantage of global credit markets for optimal liquidity origination

The technology platform controls risk and protects processing at both acquiring bank and merchant levels.  The payment processing system applies complex algorithms to all aspects of a transaction.  And simultaneously verifies transactions through a myriad of domestic and international databases, including many that are not usually not used in the payment processing industry.

Chargebacks and fraudulent transactions are kept at extraordinarily low levels.  Contingent liabilities associated with processing are drastically reduced, protecting banks and merchants.

The unique technology helps the banks maintain the capital risk/reserve ratios mandated by banking regulations.  As a result, the banks in the network have the ability, desire, and capital resources necessary to process for high volume, high risk merchant accounts.

Application Process

Application for accounts is always free.  As part of the application process, merchants are asked to submit payment processing history; business financials, company formation documents, and other pertinent information.  Once the application file is complete, it is distributed throughout the network.

The banks “bid” on the business which guarantees low rates to merchants.   Once the merchant decides to move ahead, payment processing agreements are sent from the acquiring bank(s).  Integration to the processing platform via API is completed and processing can begin.

After being accepted by the network, merchants can easily establish multiple accounts, without the need to apply to each bank individually.  Companies with international markets can setup accounts in a variety of jurisdictions.

Once payment processing history is established, the account is resubmitted to the entire network on a regular basis to guarantee that the lowest rates available are always in place.  And merchants have access to multiple capital markets, to take advantage of the most favorable conditions available at any point in time.

Banking Regulations and Payment Processing

Dependence upon a single bank for payment processing is a risky proposition in today’s volatile economic environment.  Multiple payment processing accounts are strategically necessary for any ecommerce merchant that wants to assure processing can continue uninterrupted.

New regulations, such as the Basel III Accords, are changing capitalization/reserve ratios for banks worldwide.  In some parts of the world, such as the US and Europe, government regulators are putting additional surcharges on top of the new regulations, exerting more pressure on banks.

As a result, banks are tightening lines of credit available for payment processing services.  Companies are discovering that is challenging to obtain, maintain, and grow merchant accounts to accommodate business needs.  Access to credit is becoming scarce

The changing capitalization reserve ratios are causing banks to examine merchant account portfolios.  Some banks are putting caps on the amount of processing that can be run through high volume merchant accounts.  Other banks are deciding to no longer accept high risk processing.

Participation in the banking network is the most effective and efficient way to protect liquidity and cash flow.  Contact today.