The foreign exchange market boasts an impressive scale, surging to $753.2 billion in 2022 and projected to ascend further to more than $ 1.1 trillion by 2028. Given such skyrocketing popularity, an abundance of forex brokers has surfaced to serve the needs of forex traders.
To thrive in such a dynamic market, forex businesses need seamless payment processing and a range of additional features tailored to their specific needs. What are these features and how do they help forex businesses stay competitive?
We communicated with our customer success team, seeking their expertise on the essential payment processing features for forex businesses. Let’s delve into their insights!
Top payment processing features for forex businesses
Refunds, partial refunds, and multi-refunds
Forex trading involves a high volume of transactions, and occasionally, refunds are necessary. For instance, a user might deposit some funds to their account to trade but then change their mind and ask for a refund. They might ask for a full or partial refund. And fulfilment of this is required by law.
Given this, the ability to deal with refunds is obligatory. But there is another capability that gives even more freedom of choice for your traders and makes your business stand out – multi-refunds. We’ve recently added the multi-refund feature to our payment orchestration platform. Now, with just a few clicks, our forex merchants can subsequently initiate multiple refunds on various sums from one invoice to the same card via the same channel. It increases security due to minimising the risk of error.
This feature streamlines the refund process and ensures that clients receive their funds promptly, enhancing trust and satisfaction.
The fees for processing a refund with certain providers are lower than that of a payout. Thus, forex brokers often use this trick to make payouts and save costs on transaction processing.
Lead Customer Success Manager at Corefy
Accurate financial records and their reconciliation are the backbone of a successful forex business and are required by law. Timely reconciliations allow forex merchants to check if all transaction statuses and resolutions within their records match with those of providers.
As your forex business grows, you use more payment providers, currencies, and payment methods. Tackling reconciliations with a constantly growing number of ledgers with various data becomes a true headache. However, it can be relieved by a payment platform with rich reconciliation capabilities. This feature can greatly facilitate the whole procedure, minimising manual work and the risk of human error while increasing the accuracy of the process.
See how Reconciliations work in detail 👇
Private and public API
Flexibility in integrating payment systems is a priority for forex businesses. When choosing a payment platform, ensure it offers private and public APIs along with mobile SDKs, allowing businesses to customise their integration based on their needs and customers' preferences. A payment solution for forex businesses should be flexible to work with both desktop and mobile applications.
Streamline your forex payments💸
Leverage the advantages of a scalable white label payment solution to facilitate payment processing and expand your forex business.
Featured merchant account for card or card bindings
Due to the high-risk nature, forex businesses often face payment declines. This has a negative impact on conversion rates and the company’s revenue. That’s where the game-changing card binding feature comes in handy.
The card bindings feature allows a payment system to streamline processing and increase payment acceptance. Here’s how it works: the system recognises through which MID a certain transaction was processed successfully and binds the card to it for further transactions. Thus, the next time this user pays with that card, the payment will be sent straight to this MID for higher success rates.
We at Corefy have recently added the card bindings feature to our stack to help our forex clients increase their conversion rates and reduce the risk of payment failures due to expired cards or incorrect payment details.
Customer Success Manager at Corefy
Smart payment routing and cascading
Foreign exchanges deal with multiple currencies and markets and require a payment processing system that can handle complex routing scenarios. Moreover, the performance and success of a forex business depend on the region where the processing takes place, its currency, and the country of the card issuer and acquirer.
A payment routing and cascading feature allows businesses to configure custom routing schemes based on a range of parameters, including regional customer preferences, currency, or even time of payment. After you set up your routing schemes, the system will follow them and automatically select the most suitable payment route for each transaction, ensuring its cost-efficiency and high acceptance rates.
Payment routing explained📚
Responsive support of a payment team as a service is invaluable for the streamlined performance of forex businesses. Prompt reaction to any technical issues or other queries that may arise ensures their quick resolution. A reliable account manager with years of expertise can help businesses delve into in-depth analytics of their payment operations, identifying areas for improvement to boost efficiency and conversion rates.
Given the global scope of forex operations, businesses often collaborate with a range of local payment providers. A dedicated account manager is instrumental in managing these partnerships, finding the best providers for certain regions, and streamlining communication processes.
Virtual merchant accounts
Virtual merchant accounts are a great strategy to maintain secure and compliant payment processing, which is essential for forex businesses.
Certain jurisdictions impose stringent requirements for businesses to segregate client funds from their operational funds to minimise the potential for misuse or mishandling of these funds. Holding clients' funds in separate virtual merchant accounts helps achieve compliance with such regulatory requirements.
Implementing virtual merchant accounts may add complexity to payment operations, but it offers ample opportunities for flexibility. You gain the ability to design and manage payment flows independently, offer country-specific payment methods, and easily compare sales through aggregated reports and forecasts. It’s a winning strategy for forex businesses.
Corefy’s Co-founder & CBDO
As long as all forex projects are high-risk, not all providers are eager to cooperate with them. Thus, getting a merchant ID (MID) can become a real challenge for them. Moreover, high-risk businesses often get higher fees for processing. Our payment orchestration platform possesses a network of providers and a PSP catalogue that can accelerate the onboarding process, allowing forex businesses to start accepting payments quickly and efficiently.
A payment processing solution that possesses these cutting-edge features is a real game-changer in the competitive landscape of forex trading. By investing in it, forex enterprises can enhance their operations, attract and retain more clients, and ultimately achieve sustained success in the industry.