The Future of Cross-Border Payments: What Will it Look Like?

The cross-border payments landscape is constantly evolving. New technologies and approaches are always emerging, making it difficult to predict what the future will hold. However, some clear trends suggest where the industry is headed.

So, what are these trends? And how will they shape the future of cross-border payments? We’ve created a complete guide to answer these questions.

In this guide, you’ll learn about:

  • What are cross-border payments?
  • How cross-border payments work today
  • The benefits of cross-border payments
  • The future of cross-border payments
  • What is SWIFT and how can it help?

Read on to find out everything you need to know about the future of cross-border payments.

What are cross-border payments?

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Cross-border payments are electronic money transfers between two countries. The majority of these payments consist of a sender and receiver who do not share a common ledger, and the transactions between the two countries will involve a series of intermediary transactions.

They can be used for a variety of purposes, including:

  • Paying suppliers in other countries
  • Receiving payments from customers in other countries
  • Transferring money to friends and family members in other countries
  • Making investments in foreign companies or securities

Let’s say you’re a CFD broker. You have clients in the UK, Europe, and the US. To settle trades with these clients, you need to be able to send and receive payments in all three currencies. 

Types of Cross-Border Payments 

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SWIFT

The society for Worldwide Interbank Financial Telecommunication (SWIFT) is a system that allows for cross-border payments to be made in any currency via a swift code. It’s used by businesses all over the world and is considered to be extremely secure. 

SEPA

The single Euro payments Area (SEPA) is a system that allows for cross-border payments to be made in Euros. It’s used by businesses in the European Union (EU) and European Economic Area (EEA).

Credit card payments

These are cross-border wire transfers made with a credit or debit card. 

Alternative methods of payments

E-wallets, apps, and cryptocurrencies. These are all new methods of making cross-border payments that are becoming more popular.

How cross-border payments work today

Cross-border payment options are typically made through banks or other financial institutions. The sender will initiate a transfer through their bank, and the recipient’s bank will receive the payment and credit it to their account.

In most cases, cross-border payments take several days to complete. This is because the banks involved need to convert the currency, process the payment, and then send it through the international banking network.

The process can be further complicated by things like different time zones, holidays, and weekends. All of these factors can delay payment and add to the overall cost.

The benefits of cross-border payments

Despite the challenges, there are a number of reasons why you might need to make cross-border payments. In many cases, they offer a number of advantages over traditional payment services. Some of the benefits include:

Achieve a greater ROI

With cross-border payments, businesses can save on operational costs and improve their bottom line. That’s because they can take advantage of better foreign exchange rates and avoid costly bank fees.

Businesses can also save on costs associated with having a local presence in another country such as rent, salaries, and other overhead costs. Outsourcing services from emerging markets can also be a cost-effective way to get the same quality of work without having to pay high prices.

Suppose you’re an online gaming company that makes most of its revenue in US dollars. However, you have servers and other operational costs in Euros. With a cross-border payment solution, you can get the best exchange rate for your transactions and save money on every transaction. This can add up to significant savings over time and improve your bottom line.

Increase the number of buyers and affiliates

With cross-border payments, your high-risk business can expand its customer base and tap into new markets. That’s because you’ll be able to accept payments from buyers in other countries.

For example, let’s say you run an e-commerce store that sells products to customers in the United States. With a cross-border payment solution, you could start selling to customers in Europe and Asia as well. This would open up a whole new revenue stream for your business.

Comply with international tax and regulations

Cross-border payments can also help businesses stay compliant with international tax and regulatory requirements. This is because they provide a paper trail of all transactions. This can be helpful in the event of an audit or investigation.

For high-risk businesses, cross-border payments can also offer a number of other benefits. For example, they can help businesses avoid chargebacks and fraud.

The future of cross-border payments 

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Despite the benefits, there are still a number of challenges with cross-border payments. 

But the good news is that things are changing. With the advent of new technologies like blockchain, the future of cross-border payments looks promising.

Here are some of the ways that cross-border payments are expected to change in the future:

Cross-Border Payment methods will continue to evolve

There’s no doubt that payment methods will continue to evolve and in turn enhance cross border payments. In the past, cross-border payments were typically made through banks or other financial institutions. But this is changing. SWIFT GPI, SEPA Instant, and other innovations are making it possible to make cross-border payments in real-time.

Cross-Border Payments will be instant

One of the biggest changes to cross-border payments is that they will become instant. This is possible with the use of blockchain technology. With blockchain, payments can be processed in real-time, without the need for intermediaries.

Suppose you’re a high-risk business. In the past, you may have had to wait days or even weeks for your payments to clear. But with blockchain, your payments will be processed immediately, giving you the working capital you need to keep your business running smoothly.

Cross-Border Payments will offer differentiating features

Another way that cross-border payments are expected to change is that they will offer differentiating features. This is because the market is becoming increasingly competitive. As a result, businesses are looking for ways to stand out from the crowd.

One way that businesses are doing this is by offering unique features that appeal to specific niches. For example, some cross-border payment solutions are designed for businesses that need to send large amounts of money. Others are designed for businesses that need to make frequent payments. 

Each of these solutions offers differentiating features that appeal to a specific group of customers. This is expected to continue in the future as more and more businesses enter the market.

Cross-Border Payments will be more transparent

In the past, there’s been a lack of transparency with these payments. However, cross-border payments are evolving and APIs are playing a big role in this.

With APIs, businesses will be able to connect to a network of central bank and financial institutions. This will allow businesses to compare prices and find the best deals. It will also allow businesses to track their payments and receive notifications when the funds have been received. This increased transparency will help businesses to avoid hidden fees and charges.

Cross-Border Payments will meet every business’s needs

In the past, cross-border payments were often seen as a niche product. But this is changing. As the world becomes more connected, there is a growing need for this solution. 

This is because businesses are increasingly doing business with partners in different countries. By tracking international payments with a single, ubiquitous standard, businesses can streamline their operations and save money. Plus, transparency on fees, remittance and FX information will help businesses to avoid hidden charges and improve the customer experience.

Final Thoughts

The future of cross-border payments looks promising. With the advent of new technologies, the process is becoming more efficient and transparent. This means that businesses will be able to save money and conduct transactions more quickly and easily.

SWIFT payments Can Help Your Medium or High-Risk Business:

One of the most popular methods for making cross-border payments is SWIFT. 

SWIFT is a global network that connects banks and financial institutions. It allows businesses to send and receive money quickly and securely.

SWIFT is an ideal solution for businesses that need to make large or frequent cross-border payments.

At Capitalixe, we offer SWIFT-enabled cross-border payment solutions that can help your medium to high-risk business save time and money. It’s designed for businesses of all sizes and can be customised to meet your needs.

Interested in learning more about our solutions? Contact us today!

How to find the best banking provider for your crypto exchange business

How to find the best bank provider for your crypto exchange company

So, you’re a crypto company wanting to expand your business, but you need to secure the right banking partner. How do you go about finding the best bank account for crypto? And how can you tell which is the best for your needs?

The world of crypto is still facing a lot of challenges, not least because it has a tendency to be volatile and unregulated. Despite this, there is a huge interest from various companies in cryptocurrencies and blockchain technology – especially considering the possible benefits that they could bring to businesses all over the world.

In recent years, there are now some banks that have been trying to establish themselves as leaders in crypto-related services and some of them have already entered the crypto sphere – but not all of them are suitable for every crypto business. 

This means that crypto companies need to make sure they choose the right banking partner for their particular needs. However, this isn’t as easy as it sounds. But don’t fret. We’ve put together a comprehensive guide that will help you choose the right partner and explain what you need to look out for.

Challenges Facing Crypto Companies

Before we get started, let’s take a quick look at some of the challenges facing companies who choose the wrong bank account for crypto merchants:

Chargebacks and fraud 

Chargebacks and fraud are a huge concern for any company accepting and operating with cryptocurrency. The right banks will be able to mitigate this risk and protect you from fraudulent activity and chargebacks.

Compliance and regulation  

Banks that specialise in cryptocurrency tend to work closely with regulators, ensuring they’re aware of the business you’re doing and helping to maintain compliance. Banks that do not specialise in cryptocurrency will often struggle with regulation, leaving you exposed.

AML and KYC 

There are some banks and financial institutions out there that don’t comply with Anti Money Laundering (AML) and Know Your Customer (KYC). If you choose one of these banks, it will put your business at risk of unlawful activities. Banks and financial institutions that specialise in cryptocurrency are fully compliant with AML and KYC.

Choosing the Right Banking Provider for your Crypto Company

When it comes to choosing a banking partner, there are a few different things that you need to consider. The right choice depends on your profile and what your business is looking for in a bank.

You’ll also want to determine which features are the most important for your particular business model. This will help you find an institution with the appropriate infrastructure and expertise while also ensuring that you get a positive banking experience.

Here are five steps you need to take when choosing a banking partner for your crypto company:

Step 1: Do your research and make a list of potential banks and financial institutions 

The first step is to compile a list of potential banking partners – and this is very important. Make sure you include all the relevant institutions that might be able to help your crypto company grow.

You’ll also want to do some research around each prospective bank, such as reading reviews from other businesses using them and checking their latest news online (you can find more information in addition to what’s provided on their website).

You’ll want to pay special attention to:

  • Regulation: You’ll need to ensure that your bank is compliant with relevant regulations so they are able to handle crypto transactions. 
  • Security of funds: You’re going to be trusting these bank providers with your money, so they must have high levels of security in place. Make sure the funds are held in segregated accounts away from their own company funds, protecting your funds in the event of insolvency or bankruptcy.

Once you’ve compiled your list of potential partners, it’s time to move on to step two in our guide.

Step 2: Figure out which bank is the best fit for your company

After you’ve drawn up your list of potential businesses, you’ll need to evaluate how each one can help your digital currency business move forward. You should look at the available features that they offer and compare them against your requirements. For instance, virtual IBANs for crypto in multiple currencies are essential when it comes to doing business internationally, so if your top priority is simplifying the virtual currency transaction process then this feature should be high on your list.

Step 3: Consider how easy it is to open a virtual account with the bank

In order to do business with a digital currency company, banks will need to set up a virtual account. This makes it possible for your business to transfer virtual currencies and deal with fiat currencies as well – something that might be important for your digital currency exchange.

Make sure to assess how easy it is for digital currency companies to open virtual accounts with your prospective bank and if they’re willing to do this in a timely manner. 

Step 4: Check if your cryptocurrency company is being treated with good customer service

Even though banks are generally very responsive when it comes to meeting the requirements of their customers, some institutions have more experience dealing with virtual currency-related issues than others. These banks generally offer dedicated services for businesses that work with cryptocurrencies – so it’s important that you find an institution that is willing to help your digital currency business thrive.

Step 5: Determine how easily you can transfer funds and open IBANs (or other payment channels)

Once you’ve established which bank offers the services you need, it’s important to find out if there are any fees or restrictions involved with transferring currencies – such as setting up an IBAN for crypto. You should also check if there are certain rules that affect how you can pay your suppliers and customers.

There might be certain banking procedures and actions associated with your business type – so you’ll need to work out whether they’re appropriate or not. For example, if you deal with a lot of small-scale transactions, then it’s likely that different rules will apply compared to taking large sums across borders.

Final Thoughts

It’s important that you do your research and seek advice from other cryptocurrency companies and people in the industry when choosing a banking provider for your business. 

As crypto is still a new industry and widely unregulated, there’s going to be a large portion of financial institutions that won’t work with any sort of crypto companies, but don’t get disheartened. This is where we can help! 

At Capitalixe, we specialise in helping crypto companies obtain high-risk merchant accounts, bank accounts in multi-currency which includes both SWIFT & SEPA, and banking solutions for crypto. 

Our consultants are more than happy to discuss your banking options and give you all the information you need before making any decision.

Contact us today!

Digital Payment Trends Dominating 2022

Digital Payment Trends Dominating 2022

The Covid 19 pandemic has resulted in a rapid increase in both the volume and value of digital payment options. In fact, according to Statistica, the total transaction value in the digital payments segments is projected to reach $7,860,739m in 2022 and $10,715,390m by 2025.

Mobile wallets, cryptocurrency and voice-activated payments – it’s all changing so quickly that it’s hard to keep track. But at Capitalixe, we’ve got your back. 

Below are some of the biggest trends in digital payments today and what the future holds for them. So grab a pen and paper (and a lovely hot cuppa) because here are the trends you’ll be discussing at your next dinner party…

Mobile Wallets 

Now one of the most used digital payment methods by consumers, mobile payments use will continue to rise with 26.93% of CAGR projected between 2020-2025.

These services offer customers convenient, instant payments with no need for cash or PIN numbers. And they’re changing more than just the shopping experience, they’re even revolutionising how we make utility bill payments and send money abroad.

Today, we can use our mobiles to pay for groceries and petrol or even delve into the world of digital currencies by transferring Bitcoin and other cryptocurrencies between wallets. And we can do it all with just a tap of our phones.

However, there’s still room for improvement in this sector as many retailers are still reliant on cards as an alternative to cash. This is mainly due to the fact that not everyone has a mobile wallet and some customers still don’t trust them.

BNPL Schemes

Buy Now Pay Later schemes are quickly becoming the preferred payment method, especially with millennials and Gen Zs. StudentBeans found that 42% of UK shoppers aged 16 to 24 used a BNPL service for big-budget fashion items and expensive tech purchases. 

These schemes allow users to spread the cost of expensive purchases over time. Let’s say you want to buy a product for £200. You can split this purchase into three or four monthly instalments with zero interest.

Klarna is one of the leaders in this field, with an impressive 90 million users utilizing their services. They are quickly replacing traditional credit cards, especially for internet shoppers. Last year, the company announced it had raised $639 million in funding rounds, bringing the company valuation to $45.6 billion.

Voice-Assisted Payments

If you own an Alexa, Google Home, or Siri device, you probably use it to get the weather report or book a cab. But did you know that these devices can also make your shopping easier?

Statista found that 35% of users use smart speakers for buying products like home care, groceries, and clothing.

So how does voice-assisted shopping work? You simply tell your digital assistant to order you a new pair of shoes, and they do it for you – there’s no need to type in any payment details as they are already logged into your account!

Cryptocurrency Payments

The future of digital payments is undeniably crypto. And with mainstream providers like PayPal, Stripe, and Square now accepting Bitcoin as a form of payment, it’s easier than ever to use these new currencies.

40% of large corporations in the Americas, Middle East, and Africa are considering using digital currencies for purchases over the next year. Plus cryptocurrency is helping a number of our clients who have high-risk merchant accounts. 

This includes the online gambling industry which has been completely revolutionised by cryptocurrency. Our Co-founder Lissele Pratt discussed how in Fintech Times

Named one of the biggest trends in the payments industry by PYMNTS, crypto is becoming an increasingly attractive payment option. If you’ve still got doubts about them, here’s why more and more companies are looking into crypto payments.

Artificial Intelligence & Machine Learning

AI is already changing the way we live, and now, it’s also revolutionising digital payments.

Machine learning algorithms are helping to identify fraud and prevent them, as well as providing real-time security measures against hacking.

AI can also help companies personalise the customer experience. Algorithms can identify a user’s shopping habits, preferred payment types, and any special requests – all in real-time!

As people become increasingly reliant on AI to provide a better user experience, these technologies will continue to gain in popularity.

AI Banking

As well as improving the user experience, AI is also starting to take on some of the back-end tasks that are traditionally handled by humans.

For example, AI can now provide automated financial advice based on individuals’ spending habits. Meanwhile, chatbots are also helping customers manage their accounts and complete simple transactions – without ever having to speak with a human being!

In the future, we may even see AI-enabled financial advisors replacing some of the roles of human advisers. For example, rather than recommending a specific assortment of products to invest in, an AI system would be able to provide financial advice based on individual circumstances.

Final Thoughts

So there you have it. Our top digital payments trends for 2022.

As technology continues to advance, we can expect to see more innovative payment technologies – particularly in the fields of artificial intelligence and cryptocurrencies. These could all become integral parts of our daily financial routines over the next year, from voice-assisted purchases to chatbots.

Capitalixe

At Capitalixe, we leverage the latest in financial technology solutions to help high-risk companies like those in the gaming and cryptocurrency sectors. We can help attain high-risk merchant accounts, multi currency IBANs or even bank accounts for financial institutions and the latest payment solutions. 

Contact us today to find out how we can help your business grow!

Capitalixe: How is Cryptocurrency Revolutionising the Online Gambling Industry?

The online gambling industry is still relatively new, with the first internet gambling site introduced in the mid-90s. Although it’s still in its infancy, the market is growing rapidly. According to a report by Research and Markets, it is expected to reach $72.02 billion by the end of 2021, at a compound annual growth rate (CAGR) of 12.3%.

One of the main reasons for this growth is its willingness to adopt new technological advancements. Many industries remain wary of accepting these changes in fear that they will be detrimental to the future of their business. However, this isn’t the case with online gambling. Known for being the industry to take risks, online casinos and gambling sites constantly adopt new trends to meet the ever-changing demands of the market. 

As Co-Founder at Capitalixe, Lissele Pratt helps companies in high-risk industries obtain the latest financial technology and banking solutions. Here she shares her thoughts on how cryptocurrency is revolutionising the online gambling industry. 



Cryptocurrency & Online Gambling

Lissele Pratt, Director & Co-founder of Capitalixe

A recent trend in the online gambling industry has been the adoption of blockchain technology. Bitcoin paved the way for this change as the first blockchain-based currency adopted by casinos in May 2012. This was shortly followed by other popular digital currencies, including XRP Ripple and Ethereum. We’ve recently seen the emergence of new cryptocurrencies, specifically for the online gaming industry, such as CasinoCoin. 

Cryptocurrency casinos allow people to deposit money and withdraw their earnings in digital currencies. These casinos have completely revolutionised the industry as more people are reaping the benefits of their use.

Benefits of Casinos and Players Using Cryptocurrency

Increased Security

Many people who gamble online fear that they may be at risk of their banking information being stolen by fraudsters. This year, Experian found that the surge of online gambling during the global pandemic increased online fraudulent activity. 

Anyone who understands how cryptocurrency works will likely know some of the benefits of blockchain technology. Blockchain can be defined as a database of information that records the provenance of a digital asset in a way that makes it very difficult to change. It is a digital ledger of transactions and provides an open database of every transaction involving value.

This makes using this technology extremely secure. Cryptocurrency is easy to track as each transaction comes with its own unique identifier code. However, it is impossible to manipulate these transactions because all digital currencies are encrypted. This ensures that payments made using blockchain technology are safer than traditional currencies. It also reduces an internet users’ chance of making unauthorised transactions. 

Anonymity 

Blockchain technology also offers users complete anonymity whilst they play. Because no identification is attached to a bitcoin wallet, players can feel secure knowing that nobody can obtain their personal information. Instead, they can focus solely on their games and not have to worry about other users seeing their progress. 

Online gaming also won’t have a negative effect on player’s credit scores or their chances of loaning money. Cryptocurrency will not be visible on any bank statements. When applying for a loan, banks will sometimes look through these statements to better understand spending habits. If they spot any gambling activity, they’re much more likely to refuse this loan. 

Speed 

One of the most frustrating issues a player faces when gambling online is the number of hurdles they must jump through to receive their money. This is especially true when their payouts are made from international businesses. SWIFT payments can take anywhere between 1-5 working days to receive casino payouts, resulting in many players turning to brick-and-mortar stores rather than playing online. 

Playing with cryptocurrencies such as Bitcoin, Ethereum or Litecoin prevents users from waiting long periods of time to receive their winnings. Cryptocurrency winnings are transferred into a player’s digital wallet instantly so players can spend their winnings faster.

Cost-Efficiency 

Because cryptocurrencies are decentralised, they do not have a governing body examining the validity of the transaction. When transactions are made with traditional currency, there are always additional costs and transaction fees required by banks. For example, if you use your credit card for gambling, you will be charged a cash advance. According to Finder, These transactions attract a cash advance fee between 3% and 5% and a high cash advance APR. This fee is considerably higher if it is an international transaction.

These additional costs apply both to the player and the casino. Gambling with cryptocurrency means that these fees are either removed entirely or significantly less. You can also convert this cryptocurrency into fiat currency without having to visit a bank. 

Final Thoughts 

The use of cryptocurrency is still widely debated. Some feel it is too unstable for the average investor; others believe it is the way of the future. But could the integration of cryptocurrency in online gambling be a perfect match? It would seem so.

Offering this payment option to players will allow online casinos to attract new clients and provide additional benefits to existing customers. In Addition, this digital currency appears to solve a lot of the problems facing the online gambling industry. Using cryptocurrency can be a faster, safer and more cost-efficient solution to both players and online casinos. 

 

What Is A Payment Gateway And How Can It Help High-Risk Merchants?

Because of the rise in fraudulent and scam activities, more and more individuals are becoming extra cautious about disclosing their financial information to other parties. All of the major corporations and enterprises are attempting to devise methods of making safe payments without having to worry about their data being compromised. One of the most popular and secure methods has been presented by technology professionals and has been widely used.

The Payment Gateway is the name given to this system. The purpose of this article is to provide you with all the necessary information regarding this technique, including whether or not payments made during certain periods will be beneficial to your company in any kind. So, let’s get started.

What is a payment gateway?

Payment gateway for high-risk merchants is technology that enables businesses to accept payments made by credit and debit cards from their consumers. Through the facilitation of safe digital transactions, they assist not just online companies but also businesses with physical locations. Investment in a payment gateway not only protects your company from liabilities, but it also allows you to welcome new clients by accepting payments via a variety of ways. For companies looking to scale their business, a high-risk merchant account would be the best to save the merchant from greater risk of fraud.

How does a payment gateway work?

The payment gateway procedure is straightforward—especially if you invest in the appropriate technology or service provider. The following are the stages involved in the whole process:

 

Step1- An order is submitted by the client. There are many options for this, including online or at a physical shop, in which case you would be placing the order for them.

 

Step2- The data is encrypted via the use of a web browser. The information provided by the consumer (if they are buying online) is sent securely from their browser to the merchant’s web server using SSL (Secure Socket Layer) encryption.

 

Step3- It is the merchant’s responsibility to transmit transaction data to the payment gateway. This is also accomplished via the use of SSL encryption.

 

Step4- The transaction is sent via the gateway to the payment processor. The payment processor connected with the merchant’s acquiring bank is notified of the transaction details and receives them.

 

Step5- Once the transaction has been completed, the payment processor transmits it to the card association for processing. VISA and Mastercard are only a few examples of card organisations.

 

Step6- The transaction is verified by the bank that issued the credit card. If the request is accepted, the bank will acknowledge receipt of the request and provide a response number for the transaction. If your application is denied, the bank will give a reason, such as inadequate money, to explain why.

 

Step7- The issuing bank provides a response code to the payment processor, which the payment processor uses to complete the transaction.

 

Step8- The payment processor transmits the code to the payment gateway, which then sends it to the customer.

 

Step9- In order to complete the transaction, the payment gateway provides a code to both the business and cardholder.

Despite the many stages involved, the whole payment gateway procedure is completed in a matter of seconds rather than minutes. It is a safe and convenient method to take payments from consumers, regardless of whether they engage with your company online or in person.

What level of security does the payment gateway procedure provide?

One of the most significant advantages of utilising a payment gateway is the high level of security it provides. According to Pixelmattic, major card associations have established a set of regulations and security requirements, known as the Payment Card Industry – Data Security Standard (PCI-DSS or PCI), that must be adhered to by anybody or any organisation that has access to sensitive credit card information. All payment gateways, in turn, must satisfy these criteria in order for the service business to connect with payment processors. If they are not authorised, the service company will not speak with them. You will be shielded from any liabilities or fraudulent transactions as long as you are utilising a secure payment gateway for your business operations.

Importance of Payment Gateway

The importance of a payment gateway to any business and e-commerce website can be explained by a variety of factors. According to a research conducted by Shape Security, 90 percent of all login attempts to online stores and companies occurred as a result of unauthorised hacking efforts throughout 2018. Payment gateways are crucial for preventing hacking efforts such as this one, and they are particularly important for small and medium-sized companies.

 

The following are some of the most significant benefits that both large and small companies and eCommerce sites may get from the use of a payment gateway:

 

1.      All the alternative online payments are accepted

A payment gateway is a tool that allows merchants and business owners to accept and process payments made using credit cards and debit cards, among other methods. It also opens the door for companies to accept alternative forms of online payment that may become accessible in the future. The increased number of payment alternatives makes it simpler for company owners to meet the diverse requirements and expectations of their customers.

 

2.      The risk of Credit Card fraud is reduced

Payment gateways are primarily intended to reduce the occurrence and potential of online payment fraud, which is why they are so widely utilised. Payment fraud is a problem that online companies and merchants often face when processing transactions that require the usage of credit cards to collect payments from consumers. Using a payment gateway, companies may benefit from specific security measures that guarantee that both the operators and the purchasers have a safe and secure means of processing information, money, and the entire transaction.

 

3.      Smooth site surfing

Some payment gateways provide a feature that allows companies to create unique checkout pages for their customers. Customers will no longer be required to be transferred to another website when placing purchases or making payments as a result of this.

 

4.      Customer data is in safe hands

Security and encryption of consumer information are enhanced by payment gateways. Because of the increased level of client security, it is highly recommended as an additional layer of protection against online fraud for online companies. Businesses that use payment gateways often get positive feedback from the vast majority of their consumers.

 

5.      Easy installation and maintenance

The fact that a payment gateway may be completely automated means that it does not need frequent maintenance or a hefty installation price. The majority of payment gateways simply need companies to establish an account before the software can be activated. Frequently, further software upgrades are planned, and companies are notified when it is time to upgrade their current payment gateway.

Where to find the best Payment Gateway?

There are a variety of payment gateway service providers accessible, and it is the duty of online company owners to identify and choose the payment gateway that best meets the requirements of both their business and their consumers. Furthermore, they must consider the safety of their website as well.

Payment gateways that are reliable and efficient should be equipped with SSL certificates issued by authorised organisations in charge of validating the gateway’s credentials to operate. Payment gateways must also be PCI-compliant and adhere to policies and procedures that ensure the security and privacy of customer information throughout all transactions.

The success of an online company may be guaranteed while at the same time ensuring that client pleasure is completely satisfied by carefully selecting a trustworthy and appropriate payment gateway. In addition, business owners may develop a checklist that outlines the requirements of their company and consumers, as well as their firm’s previous errors in online transactions, if this is beneficial.

Summary

We hope that this article has provided you with a good understanding of how Payment Gateway for high-risk merchants would work. If you would like some further insight on the best payment solutions available for your business, please don’t hesitate to get in contact for a free and non-obligatory consultation.

 

What Is A Virtual IBAN and How Does It Benefit High-Risk Merchants?

The IBAN, in general, is that unique code that helps identify a particular bank during a cross-border transaction. You must know the IBAN of your beneficiary to ensure that you are receiving the money properly.

If you are doubtful about the IBAN or input the wrong one, it is most likely that the beneficiary bank will restrict the transaction. Moreover, you will be charged a retrieval fee against the failed transaction. In this post, we will give you details about virtual IBAN, which is more important in the era of digitisation. Besides, it is highly beneficial for high-risk businesses in the UK. Let us now dive into more details.

A virtual International Bank Account Number or virtual IBAN is a non-tangible account issued to a person to receive and send money from one country to another hassle-free.

Having an IBAN means that you do not need several bank accounts to carry out international transactions. That’s also the reason why high-risk merchants prefer to use an IBAN to make payments and receive money from other countries. Moreover, not having to maintain too many physical accounts saves so much time and money too.

Virtual IBAN- What is the meaning?

For any high-risk merchant across Europe, having a proper bank account is mandatory, especially if international transactions are taking place. However, it is often very challenging to manage international transactions using only the local bank accounts.Moreover, it is very tedious, time-consuming, and costly due to the constantly changing monetary transaction policies and total resources.

IBAN is that unique number that is part of a standardised international banking system capable of identifying overseas bank accounts. The concept of IBAN was first introduced by the ECB or the European Committee for Banking Standards.

The same body developed and also implemented the IBAN concept to make the process of international payments smoother. A proper IBAN can be divided into distinct parts that are all mandatory. The first two digits make for the country code, then there are two numbers, and the rest are 30 alphanumerical characters.

When the concept of IBAN was introduced, it was supposed to be used especially for cross-border transactions within Europe only. Gradually, other countries also started adopting the concept, which is now used extensively worldwide. Licensed under ISO 13616:1997, presently, the Caribbean and Middle-Eastern countries apart from Europe are the ones that use IBAN the most. These are also countries where high-risk businesses such as gambling and casinos are more popular.

Since virtual IBAN is merely a verification process, you will have to stop using an existing account number under no circumstances. Instead, when you require an IBAN, the bank will issue additional details that have nothing to do with your existing bank account. While IBAN is highly beneficial for high-risk merchants, it may not be the best option for organisations carrying out massive amounts of international transactions.

Each IBAN account is usually linked to a single primary account, which means that irrespective of the amount of money exchanged, all of it will automatically route to the primary account. Also, while using IBAN, one of the most difficult situations is when you have to keep track and reconcile various incoming payments made by clients sitting at multiple locations across the world. Now, virtual IBAN comes in at this point because it can sort out the various transaction sources.

An IBAN permits high-risk businesses to specify unique virtual details to receive money from various clients. This can be for specific currencies and product lines that will be redirected to a primary or master account. As a result, it is now possible for a business to carry out important transactions without the requirement of multiple physical accounts, which are highly expensive and tedious. Of course, the concept of IBAN and virtual IBAN is the same, but the latter has several benefits, especially for high-risk businesses.

What is the advantage of using Virtual IBAN for high-risk businesses?

Here is a list of the most common benefits that high-risk businesses have when using virtual IBANs.:

Setting up a business account is easier

Setting up a virtual IBAN account is basic and direct. Any entrepreneur comprehends the long and regulatory interaction of setting up a conventional account. For instance, in many nations, you must dwell in a nation to have a minimum financial balance. Such prerequisites are not restricting when managing virtual IBAN.

Improved transaction management

Your business can set up an actual solitary record and acquire numerous virtual IBAN accounts, which course to the one real ledger. Accordingly, the organisation can copy the impacts of having various records, in numerous nations, for various exchanges. You can set up virtual records for every customer making instalments, or for every instalment made in particular money, or for a particular product offering.

The business will want to get independent proclamations for each virtual IBAN, which improves on explanation compromise. Having separate articulations will empower your business to effectively find every instalment, henceforth simple investigation and recognisable proof of exchange designs.

Highly cost-saving

Opening and running various records in various nations are tedious and arduous as well as expensive. Envision the kind of banking expenses a business will pay to run 20 records! It’s anything but a ton of cash.

For Instance, Smiths Autotech of India, a provider for Mercedes Benz, sells 2 million yearly to the vehicle producer, yet the bank charges are just about as high as 8% in FX.

This organisation used to lose 12% of their monthly revenue in bank fees! In any case, since they embraced virtual IBAN, the expense has extraordinarily dropped. Virtual IBAN empowers organisations to make numerous virtual records that serve practically as actual records while staying away from the high FX charges for exchanging over each instalment that comes in when utilising the account.
Faster transaction

Virtual IBAN works with one real record. Consequently, settlement and steering of instalments are a lot quicker than in the actual record.

Better security

Security is a vital angle when managing monetary records. Having numerous records opens the proprietor to more dangers. As the administration gets dreary when running numerous real records, the shots at committing network safety-related errors also increment.

A virtual IBAN, nonetheless, is kept in redundant, encoded cloud servers. In this way, they have a generally safe of misrepresentation or vacation. The start to finish straightforwardness and isolation offered by virtual IBAN likewise make it simpler for organisations to follow Anti-Money Laundering (AML) Know Your Customers (KYC) security guidelines.

Conclusion

High-risk businesses that are presently using virtual IBAN have a competitive edge over others. These organisations are now saving a lot of money that would otherwise be required to maintain multiple physical accounts. Moreover, there is added transaction security now. Well, these may look like basic factors but are make or breakpoints in the industry.

How we can help you

Capitalixe is a leading banking and payments consultancy that is based in London and operates globally. With the help of Capitalixe, it is now possible for all businesses to access financial technology, payments and banking. Whether you are a start-up, a crypto, or gambling business or simply looking to enter into a new market, we have got you covered.

We leverage our network that we have with over 80+ financial institutions, EMI’s and banks worldwide.

The ultimate goal of the team here is to help take the pain away from our clients in finding a trustworthy and suitable solution that is happy to onboard their business. We understand these sectors very well and know how difficult and time consuming it can be to find a good provider.

Feel free to reach out to us for a complimentary consultation, we will be more than happy to help you.