What is a Forex Payment Platform, and How to Get It?
Introduction
In this advanced age, currencies are not only used to
purchase goods and services but also to trade with each other. The trade
between the currencies is called forex trading. Basically, the trade of
currencies is nothing but the exchange of currencies. Here, one currency is
exchanged for another to make a profit during fluctuations. That is why it is
called foreign exchange (forex).
At the beginning of forex trading, only central banks and
government-established large financial institutions could trade in currencies.
But with globalization and the advancement of technology, restrictions were
lifted on retailers trading in forex. Nowadays, retailers play a significant
role in the foreign exchange market. FYI, the forex market is the largest and
most liquid market in the world, with a daily trading volume of $7.5 trillion.
Seeing this growth, many businesses are establishing their forex trading
platforms but are facing challenges while obtaining a trustworthy forex payment
platform. To help these businesses find a reliable forex payment solution, we
have penned this article. Let's start from the beginning.
What is a Forex Payment Platform?
Forex payment platform is a hypernym for many high-risk
merchant solutions, including Forex merchant accounts, payment gateways,
credit card processing, fraud prevention tools, chargeback management systems,
etc. Basically, all these services are fundamental needs for a secure and
reliable payment system on your Forex platform. A full-stack merchant service
provider, like WebPays, can provide all services in one place, and this united
solution is called a forex payment platform. Let’s comprehend these services
one by one.
(a)
Forex Merchant Account
Forex merchant account is a kind of bank account that is
provided by merchant service providers. It works similarly to a bank account as
it accepts, holds, and allows withdrawal of payment from customers worldwide.
It is the account where forex customer payments first arrive. After the
settlement, this amount can be transferred to your regular bank account. A forex
merchant account accepts payment in multiple currencies, and payment methods
allow merchants to build their customer base globally.
(b)
Forex Payment Gateway
On the other hand, a forex payment gateway act as a postman
that securely transfers payment information between customer account, merchant
account, and card network. It is a mechanism that obtains customers' financial
data (e.g., credit card number, bank details) from merchants and performs encryption
and tokenization before transmitting it to concerned parties for
authentication. By auto conversion of international currency, It allows
merchants to accept multi-currency payments from customers. Similarly, it
allows transactions in alternative payment
methods that help businesses boost their customer base and business.
(c)
Other Services
Similarly, other solutions also provide some kind of
essential services to streamline the forex payments. For example, credit card
processing allows merchants to accept payment via credit card. Fraud prevention
tools safeguard merchants and customers from potential fraud in forex trading.
Chargeback management systems help merchants to mitigate false chargebacks.
There are many other services that a full-stack payment solution provider
offers their merchants to smoothen their forex payment system.
Now that you know what a forex payment platform is, let's
move on to the next question you may have: "How do you get the right forex
payment platform for your trading platform? The next section will shed light on
this question and provide you with the right guidance.
How a Forex Payment Platform Works?
A forex payment platform
integrates merchant accounts and payment gateways into the forex trading
platform and streamlines the forex payment
processing. Transferring money from the customer account to the
merchant account is a prolonged journey completed in the blink of an eye. Let’s
see a step-by-step analysis of how forex payment processing works:
1.
Payment Initiation:
First, the customer chooses the currency or payment method he wants to pay in.
Next, he submits the details on the payment page of the forex trader.
2.
Securing Data:
The payment gateway obtains the data and performs encryption and tokenization
to safeguard it before transmitting.
3.
Authorization
Request: The payment processor forwards
the customer's payment details to the acquiring bank, which then routes it to
the card network (e.g., Visa, Mastercard) if a card payment is involved.
4.
Card Network
Processing: The card network validates
the transaction details and checks for available funds or credit limits then it
sends an authorization response back to the acquiring bank, indicating whether
the payment can proceed.
5.
Authorization
Response: The acquiring bank relays the
authorization response to the payment processor. The payment processor informs
the merchant whether the payment is approved or declined.
6.
Transaction
Settlement: If the payment is approved,
the funds are converted to the merchant's preferred currency and transferred
from the customer's bank to the merchant's account.
How to Get the Right Forex Payment Platform?
Getting one of the best payment
processing companies is crucial for smooth and secure international
transactions. Here are some steps to help you choose the right platform:
(d)
Security:
Security should be a top priority
when selecting a forex payment platform. Ensure that the platform uses
encryption, tokenization, and other security measures to protect your financial
information and transactions. An FPP should also employ advanced fraud and
chargeback prevention mechanisms to safeguard you from potential fraud
(e)
Regulation and Compliance:
Verify that the platform is
regulated by relevant financial authorities such as PCI-DSS, SSL, and GDPR.
Compliance with international regulations, such as anti-money laundering (AML)
and Know Your Customer (KYC) requirements, is essential to ensure legitimacy
and safety.
(f)
Supported Currencies:
Check which currencies the
platform supports. A good forex payment platform should offer a wide range of
currencies to accommodate your global transactions.
(g)
Fees and Exchange Rates:
Compare the fees and exchange
rates offered by different platforms. The transparent fee structure with no
hidden fees is mandatory for forex brokers. Some platforms may charge higher
fees or offer less favourable exchange rates, impacting the overall cost of
your transactions.
(h)
Transaction Speed:
Consider the speed of
transactions, the instant transaction is crucial in the forex trading business.
A faster processing time can be crucial for time-sensitive payments. Customers
prefer a platform that provides lightning-fast transaction speed.
(i)
User-Friendly Interface:
A user-friendly platform makes it
easier to navigate and perform transactions. Look for platforms that offer an
intuitive interface and clear instructions.
(j)
Customer Support:
Excellent customer support can
make a significant difference, especially when dealing with international
transactions. Ensure the platform provides responsive and helpful customer
service.
(k)
Integration and API Support:
If you're a business looking to
integrate forex payments into your system, check if the platform offers APIs
(Application Programming Interfaces) or Plugins for seamless integration with
your existing software.
By considering these factors and
doing thorough research, you can find the right forex payment platform that
aligns with your needs and ensures safe and efficient international
transactions. Remember that every business or individual may have unique requirements,
so the best platform for one might not be the best for another. Take your time
to make an informed decision based on your specific needs.
Conclusion
We hope that the aim of the article has been fulfilled. It
was to guide you on what a forex payment platform is, how it works, and how to
acquire the right one for your trading platform. We are confident if you follow
the mentioned guideline, you will make an informed decision for your business.
Acquire an ideal high-risk forex merchant account provider to thrive in the
world’s most liquid and largest market. After researching several payment
processors, we conclude that WebPays is a full-stack merchant service provider
offering merchants a tailored forex payment platform. WebPays is what a
merchant requires, a solution to all forex payment-related problems. So what
are you waiting for, don’t let payment processing hurdle your success; acquire
WebPays. To read more about WebPays, visit their website www.webpays.com
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