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Merchant Account & Payment Processing

Merchant Account and Payment Gateway

Merchant accounts and payment processors are a necessity for any e-commerce website. Simply put, without them, you cannot sell goods and services online. Many people want to know more about how to properly choose them and what needs to be configured properly to help their business. Whether you are looking to create an online store or you have a business that wants to switch providers, here is some information that you might find useful regarding merchant accounts and payment processing.

Merchant accounts are types of accounts that help merchants process payments. The payment gateway stores the funds obtained from sales into the merchant account. Then the funds from the merchant account are automatically deposited into the business bank account of the owner. Remember that a merchant account is not the same as a business bank account, which is something still many people think it is. The merchant account is only for storing deposits before they are transferred to the business account. The reason why the money from sales cannot be deposited straight to the owner`s business bank account is that sometimes products are returned by customers, and sometimes the store needs to pay back money to the customers.

Not all merchant accounts are the same either. There are a few main things that separate them. First, some merchant accounts make global commerce much easier than others. While some can receive money only in one currency, others can accept many different currencies. Second, some are aggregate accounts, which means they are shared among many merchants that use the same payment gateway. Third, some merchant accounts use a more advanced underwriting process, which helps in avoiding shutdowns of the account in case there is some miscalculation.

What Is Payment Processing?​

Customers have plenty of options when it comes to paying for services. Cash is the simplest payment method, but it has taken a back seat to pay with debit or credit cards. Because most transactions today are made with cards, businesses must have a merchant account and a payment processor.

Payment processing is a process where several steps must be taken so the transaction will be authenticated and approved. After the transaction is approved, there are a few other steps that are taken for the funds to be transferred to the account of the merchant. Simply put, payment processing is necessary for any transaction that does not involve cash. This includes all debit and credit card transactions and electronic payments.

A payment processor is an intermediary between the merchant and the bank. The payment processor authorizes the payment and checks whether the buyer has enough money in their account, whether their card is valid, or if they have any limits on their account. After all of that is verified, the money is being transferred to the seller. Some payment processors also handle all security aspects of the payment setup. They ensure that payments are going through an encrypted connection and do other necessary things to keep everything secure.

Still not sure what the difference is, check out this amazing video

High Risk Merchant Accounts and Replica Merchants

Those businesses that sell replica products know how hard can it be to open a high-risk merchant account. Many reasons put replica merchants into the category of high-risk merchants. The main reason is that these merchants sell products that many countries and jurisdictions consider to be illegal. Most of these merchants are doing their operations from China and the replica products they sell include clothing, shoes, bags, fashion accessories, and other things. Replica merchants must have a good payment processor that guarantees secure and safe transactions to avoid being sued by different countries. They are a few different types of replica merchant accounts, but the setup times and their pricing is not the same.

Why Replica Merchants Are Often Rejected​

Replica merchants are often forbidden to be established in the western countries because there are many risks associated with the payment processors and banks. However, many offshore banks do process payments for these types of merchants because they sell physical goods that can be easily tracked when they are shipped. This solves many of the potential problems that may arise. Many chargebacks occur when the product takes very long to arrive at their destination or when it does not arrive at all. Sometimes customers cannot find out exactly when their product has been shipped, or if it has been shipped, where it is. All of these problems are eliminated when there is a tracking number provided by the replica merchant. Usually there are no chargebacks when people see that the products they have ordered are coming to them.

Why Get A High-Risk Merchant Account​

Many choose to get an offshore high-risk merchant account because that gives merchants an advantage in comparison to getting a typical account and standard payment processor. High-risk accounts provide a great daily overview and accurate reports. Also, high-risk replica merchant accounts use very advanced tools for protection against fraud. The merchant has the liberty to modify the sensitivity and quality of fraud protection. Technical support is also better and they can usually fix problems very quickly.

Another benefit of having a high-risk merchant account is that these accounts can process very large volumes without any caps. Many are seeking offshore merchants to help them establish their business and get a merchant account quickly without too much paperwork involved. Of course, pricing, terms, and conditions are variable, depending on the type of business. In any case, these merchant accounts can be approved within several workdays and the setup requires a couple of days. All of this applies to offshore places.

This was the basic information about replica high-risk merchant accounts. They do have their pros and cons, so you should examine in more detail whether that is the type of account you want. They do have many advantages, but they are considered high risk in many countries and many jurisdictions do not allow them. Some offshore countries do allow them, but the process of opening and other details differ from one place to another.


Mentor Group Gold
SMB Global High Risk Merchant Services | SMB Global Payments

They are specialized in High Risk payment processing they claim. I believe they are not worth or better compared to any of the many other companies that claim to board high risk merchants.

Anyway, you want to try them if you fail with any of the many others around.

They offer offshore merchant accounts, whatever this may cover, you may pay attention to that it is not in the meaning of "offshore" as we discuss here on OCT but it means they are boarding merchants from all over the world.

GAC Limited

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Just try to make sure when using a broker service you get full disclosure up front so you are not caught by surprise with the fine print
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