The Forex Marketplace
The Foreign Exchange market, known as Forex, is the largest trading market in the world, averaging over $5 trillion/USD a day in volume, nearly 20 times the daily volume of the New York Stock Exchange. The Forex market attracts users from all over the world, trading every kind of currency against another at all hours of the day.
In a market that is trading for 5 straight days a week, the marketplace for Forex brokers is a substantial income earner and the need to accept Forex credit card processing payments is essential. Setting up a Forex merchant account is one of the highest risk and difficult types of merchant accounts that can be set up today.
Forex Credit Card Processing Requirements
Since 2015, the National Futures Association has restricted the use of credit cards to fund forex and futures trading accounts. This restriction has been a driving force behind the difficulty for merchants to establish reliable payment processing services.
Regulation of the Forex industry is loose compared to many of the other high risk industries that operate over the internet. Beside regulation that might be enforced on a national level, the global marketplace for Forex remains generally open to brokers and traders looking to get involved with this nearly $100 trillion dollar industry.
Brokerages starting in the Forex industry can either be set up as a licensed or an unlicensed brokerage, depending on the country of incorporation and the financial capacity of the owners. Unlicensed brokers run the risk of having traders' fund held due to banking regulations against brokerages operating in that capacity; thus making a license neccesary for the longevity and profitability of a brokerage.
How a Forex Credit Card Processing Transaction Works
Once a trader has determined the amount of money that is to be deposited into a brokerage, the trader will enter their card account information into the payment gateway. The gateway provides a secure connection for the brokerage to transmit cardholder information from their website to the card association via the payment processor.
Once information is received at the card association, the type of card and the card issuing bank is determined and information is passed along. Once the request hits the card issuing bank, the cardholder account is checked for available credit and any suspected fraudulent activity and a response is sent back to the merchant through the same channels nearly instantaneously.
Importance of a Forex Payment Gateway
Having a payment gateway to handle secure transactions is essential for any business operating online and handling Forex credit card processing transactions through their website. Though there are many different payment gateway options available to merchants, partnering with a PCI Compliant Forex payment gateway will not only provide the needed security during the transfer of information, but will also prevent any potential fines from the credit card associations due to data breaches or fraud.
Working with Island Payments
Partnering with Island Payments will provide Forex brokers and brokerage firms the tools and connections to establish reliable and secure Forex credit card processing services.