Why virtual merchant accounts are game-changers for forex business
August 3, 2023
6 min
The foreign exchange market is a dynamic hub for global transactions in the fast-paced world of international trade and finance. It’s the only financial market in the world to operate 24 hours a day, with over 14 million traders spanning the globe. But as the industry evolves, traders and brokerage firms face challenges in finding secure, efficient, and innovative payment solutions.
Traditional merchant service providers often struggle to meet the specific needs of forex businesses, creating obstacles in processing transactions and hindering growth potential. This is where virtual merchant account providers have emerged as true game-changers for the industry.
Join us as we explore virtual merchant accounts and how they have become a powerful tool for forex businesses to achieve greater efficiency, security, and global reach.
Understanding virtual merchant accounts
If you run a forex business, you know firsthand the importance of having a secure and compliant payment processing system. But what are the strategies to achieve it? Implementing virtual merchant accounts may be the answer.
Virtual merchant accounts are a payment account segregation practice that helps to keep funds from different sources in separate virtual merchant accounts (not sub-merchant accounts). Although the funds don’t physically move, virtual merchant accounts give forex businesses more flexibility over their funds and allow them to keep their operations organised and compliant.
Virtual merchant accounts are crucial in the forex industry primarily because they enhance compliance with regulatory requirements. For instance, in some jurisdictions, there are strict requirements for segregating client funds from the operational funds of the business to minimise the risk of misuse or mishandling of funds. Holding client funds in separate virtual merchant accounts can help achieve regulatory compliance.
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This guide provides a brief market overview and offers solutions to key forex payment challenges.
How forex businesses can benefit from virtual merchant accounts
Besides efficient compliance management, implementing virtual merchant accounts provides many other benefits for forex market players. Let’s get to know them.
Central hub for streamlined transactions
One of the primary advantages of virtual merchant accounts is their seamless integration into a centralised hub, commonly known as a payment processor. This centralised platform acts as a command centre, enabling you to track and manage transactions and financial data efficiently.
The payment processor acts as a bridge, connecting various payment methods from multiple providers, acquirers, and traffic sources. This capability allows forex businesses to provide diverse, relevant payment options to their global clientele, ensuring smooth and hassle-free transactions.
Tailored solutions for regional payments
The forex market operates on a global scale, with traders hailing from diverse regions. Virtual multicurrency merchant accounts allow businesses to cater to their international audience by offering specific payment methods for each region. This level of customisation enhances customer satisfaction and contributes to improved transaction success rates.
Flexible payment processing and customisation
Forex businesses often deal with different entities and product types, each with unique requirements. Virtual merchant accounts empower them to create independent payment processing flows and customise solutions tailored to each entity and product category. This flexibility ensures smoother operations and a better experience for both the business and its customers.
Compliance and tax benefits
Navigating compliance and tax regulations can be challenging for forex businesses due to the complexity of international transactions. Virtual merchant accounts allow companies to segregate payment traffic by source, providing clear visibility into revenue streams. This segregation aids in complying with tax regulations and simplifies financial reporting, making it easier for businesses to meet their tax obligations.
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Efficient management of multiple projects
Juggling multiple projects can become daunting without effective organisation and streamlined processes. Having a centralised platform for handling numerous transactions, forex businesses can experience a boost in their project management capabilities. It empowers them to make informed decisions and allocate resources strategically, thereby maximising profitability.
Insights and analytics for informed decision making
With virtual merchant accounts, businesses gain access to aggregated reports and forecasts for each sub-entity. This comprehensive data allows businesses to compare sales performances, analyse competition, and make informed decisions to drive growth and profitability.
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.
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Den Melnykov
Corefy’s Co-founder & CBDO
Implementing the strategy
Wondering how to leverage the benefits of virtual merchant accounts? It's simple! The first step is to team up with a reliable payment solution that can cater to all the distinct requirements of the forex industry. Look no further than Corefy. We are experts in forex payments and have a robust system for managing virtual merchant accounts. With our Forex payment solution, you can efficiently segregate payment traffic by source, streamline high-volume transactions, and effortlessly handle multiple projects.
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