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se7enhell

se7enhell

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Jul 31, 2020
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#1
Hello,

I have company in Estonia (with e-residency). I was using Stripe but it closed my account. I applied to many places (paysera, adyen, quickpay, reepay, bluesnap etc.) but I cannot get approval. I keep getting negative answers like this: high risk, unsupported business model, company owner must reside in the same country as the company. Where do I go to get approval easily? I sell digital products such as logo design, website design, seo service. I will use TransferWise or Paysera for withdrawal.

Monthly transaction: 10,000 EUR
Minimum transaction: 5 EUR
Average transaction: 20 EUR
Maximum transaction: 100 EUR

Thanks in advance to everyone who helped.
 
#5
Are you resident in the EU/EEA?

If not, the volumes are probably too low for most processors to take the risk of onboarding you. The fine varies from 25,000 to 250,000 USD (or none/just a warning). That's how much of a hit the processor could take if Visa/Mastercard see that they are processing for what's not actually an EU/EEA company.

If you are, you could try SecurionPay. They have a business model similar to Stripe but a bigger risk appetite. Pricing isn't great but you don't have many options.

Might be worth speaking with Worldpay as well if you haven't already.
 
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#6
Sols said:
Are you resident in the EU/EEA?

If not, the volumes are probably too low for most processors to take the risk of onboarding you. The fine varies from 25,000 to 250,000 USD (or none/just a warning). That's how much of a hit the processor could take if Visa/Mastercard see that they are processing for what's not actually an EU/EEA company.

If you are, you could try SecurionPay. They have a business model similar to Stripe but a bigger risk appetite. Pricing isn't great but you don't have many options.

Might be worth speaking with Worldpay as well if you haven't already.
Click to expand...
I am not a citizen of a European Union country. I don't reside in European Union countries. But I have company in Estonia (with e-residency).

SecurionPay said that they do not allow the sale of services such as software and graphic design. I tried again now. I'm waiting for a result.

Stripe accepted me, but unfortunately it closed my account after 6 months. No other providers like Stripe that can easily approve (company certificate and proof of address)? Which providers should I contact?
 
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#7
Processors like Stripe and Braintree (and Mollie, and others like them) are quick to approve but also quick to shut you down once they actually look more closely at your company. Your company is not compliant with Visa and Mastercard regulations for card acquiring in the EU region. Any processor which accepts you is taking a risk of fines and penalties from the card schemes, because your company is not operated from within EU/EEA. E-residency is useless, I'm afraid.

There are a lot of processors that make exceptions to this but I've almost never seen it done for anything under 100,000 EUR/month.

You might have better luck with PayPal, since they aren't bound by the same rules but be careful about your "SEO services". PayPal doesn't like link farms, buying followers/likes, and things like that.
 
#8
Sols said:
Processors like Stripe and Braintree (and Mollie, and others like them) are quick to approve but also quick to shut you down once they actually look more closely at your company. Your company is not compliant with Visa and Mastercard regulations for card acquiring in the EU region. Any processor which accepts you is taking a risk of fines and penalties from the card schemes, because your company is not operated from within EU/EEA. E-residency is useless, I'm afraid.

There are a lot of processors that make exceptions to this but I've almost never seen it done for anything under 100,000 EUR/month.

You might have better luck with PayPal, since they aren't bound by the same rules but be careful about your "SEO services". PayPal doesn't like link farms, buying followers/likes, and things like that.
Click to expand...

I have company in Estonia. I work with a consultancy firm that carries out my legal transactions (such as accounting, watt reporting) in Estonia. Isn't this the solution?
 
#9
se7enhell said:
I have company in Estonia. I work with a consultancy firm that carries out my legal transactions (such as accounting, watt reporting) in Estonia. Isn't this the solution?
Click to expand...
No, it is not. The card scheme regulations require that acquirers (card processors) only process for merchants which have their place of business in EU/EEA.

So unless your accountants are designing logos and doing webdesign work, your company is not considered as having its place of business in EU/EEA.
 
#11
Probably easiest is to abandon the Estonian company and form a local company where you are based and find a local payment processor.

But if you want to keep using your Estonian company, try to grow your business with other payment methods such as PayPal and other e-wallets (Ecopayz, Skrill, Neteller), crypto, bank transfer, and vouchers. Paysera has an OK gateway with decent pricing for small businesses. Lower your expectations and start speaking with high risk merchant processors; some are listed here on this website (https://www.offshorecorptalk.com/resources/) and many more can be found on LinkedIn and Google. Keep in mind that the more high risk and dodgy you go, the higher the risk that the processor will get shut down or run away with your money so be careful. Some will not give you dedicated merchant accounts and instead either miscode or aggregate, which is very risky.
 
#12
Is there someone who can provide useful information on this subject?

My company is in Estonia. I don't reside in Estonia or any other European Union Country. How can I accept credit card payments from my customers?
 
#13
What @Sols said.....

I know this can be a bit hard to understand and accept but the essence is that in todays world you cannot just open up a company in a country - like Estonia - and expect everyone else to accept that this is an Estonian company.

True, the more activity you actually have in Estonia the easier it is to convince both payments processors and tax auhorities that it should be considered an Estonian company. If you get a proper office and employees in Estonia, you are pretty safe.

There are a large number of payment processors out there that has a high risk appetite. You can also use a number of other payment options, or you can see if it is poosible to adapt your business model to fit into other companies gateways.
 
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#14
se7enhell said:
Is there someone who can provide useful information on this subject?
Click to expand...

Yes, @Sols is that "someone" who actually gave you useful information about the subject.

Stealing credit cards it's an easy job and that's why payment processors have their own rules, it costs money when customers reports their stolen cards being used.

You should keep trying to apply all payments processors as you can, if your business is legit I think @reesek offers a solution for that (but I'm not sure)
 
#15
se7enhell said:
I am not a citizen of a European Union country. I don't reside in European Union countries. But I have company in Estonia (with e-residency).

SecurionPay said that they do not allow the sale of services such as software and graphic design. I tried again now. I'm waiting for a result.

Stripe accepted me, but unfortunately it closed my account after 6 months. No other providers like Stripe that can easily approve (company certificate and proof of address)? Which providers should I contact?
Click to expand...

Why did Stripe close your account? Just say that you are a EU resident, they cant verify it.
 
#17
You might have to create a physical presence in Estonia based on the companies operational history,as you mentioned you have a very low charge back percentage,which is attractive in relation to payment gateways and banks.

enhance what you have established thus far,with having a physical office, hire a few estonian based interns short term,look at creating substance of some nature, run a few ads about your services on estonian local listings etc.
Above activities if executed would sure be a strong case to the estonian tax and banking authorities,and a few payment processors..
 
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