Payment gateway high risk

High risk offshore payment gateway

Obtaining a high-risk offshore payment gateway is not an easy task but very important for the success of your business. Banks and payment institutions are, today, the only entities that facilitate access to virtual terminals with the supervision of Visa, MasterCard, Amex, Diners Club, Cirrus or Discover brands.

When a bank approves a payment gateway to a merchant, it is because it has passed through money laundering filters and possible risks of non-payment in transactions. If at the time of requesting the virtual POS terminal, the account that the company has in the bank doesn’t have a credit history, it is probable that the application will be declined. The internal reason alleged by the entity is that when not having sufficient credit history of the client it is hard to verify its payable ability and therefore grant it a line of credit from the brands of the cards.

The banks are intermediaries between the merchants and the credit card brands and its responsibility to approve or decline a payment gateway POS terminal. When a customer pays with a card in an online store, the money automatically enters into the account of the company associated with the payment gateway. Normally the process takes from one to two days. However, this payment is advanced by the card brands to the bank, which, in its turn, debits it to the account of the client's company. Internally the brands of the cards charge a commission for this transaction and the bank charges its client another higher commission to cover the costs. As you can see, there are lines of credit that grant the brands of the cards to the bank and the entity grants them to the merchant. When approving payment gateways, banks monitor the lines of credit given by the card brands, based on the following characteristics: nature of the business, average ticket of the operation, merchant´s solvency, incorporation date and its invoicing. If one of these points does not meet the criteria, the bank does not grant the payment gateway to a company.

Offshore payment gateway providers are a perfect alternative for the banks. Being usually small payment entities that can afford to take on more risks by having their business more centralized Payment gateway providers accept high risk merchants and businesses with a history of high chargebacks. A high-risk offshore payment gateway probably overlooks the risks related to the solvency of a legal person or the values of medium tickets, giving the possibility to a new merchant to open an offshore payment gateway more easily.

Types of high risk virtual payment gateways

PSPs that grant high-risk payment gateways have to comply with anti-fraud protocols the same way as the banks. The type of the protocols depends on the types of payment gateways. PSPs and financial entities work with two types of protocols: 3D SECURE, where the cardholder has to enter a password provided by the bank and WITHOUT 3D SECURE or TRADITIONAL. The second type of the protocol is the most desired by the merchants but at the same time it is the one that most fraudulent operations can cause for the entity. Normally when the merchant is granted the TRADITIONAL mode of protocol, the entity requests some type of rolling reserve, a monetary guarantee withheld during 1-3 months, sometimes more, that protects the entity from possible fraud. 

High-risk offshore payment gateways are not easy but possible to obtain, provided that the business is legal and does not pose an excessive risk to the entity. The collaboration and the veracity of the facilitated data will be key for the acceptance of a high risk merchant account and offshore gateway. What kind of payment gateway is considered as a high risk? A gateway is considered high risk, when the company that has contracted the virtual POS, sells an intangible service and has no way to justify the delivery of this service to the final client nor the quality. In this case if a refund or chargeback takes place, it is very hard for the entity to defend the interests of the merchant and therefore the case gets resolved to the favor of the final client. 

Advantages of opening a high risk offshore payment gateway

• Commissions in accordance with the risk of the business. Low registration fees.  
• Client support specialized in payment gateways and E-Commerce.
• Implementation of anti-fraud protocols.
• Approval of your high risk payment gateway in 99.99% and within 48-72 hours.
• Possibility to accept all brands of the cards (Visa, MasterCard, Amex, Diners Club, Cirrus, Discover).
• Opening of high-risk payment gateway without obligation to present credit history reports.
• Unlimited number of transactions.
• High risk payment gateways for newly incorporated and operating companies. There is no restriction on the country of incorporation of the company.
• Payment gateways in 3D Secure and without 3D Secure or Traditional mode.
• No physical presence is required to apply for the payment gateway.

Commissions of the high risk payment gateway

Depending on the nature of the business, the processor can charge the merchant the highest or lowest commissions for a payment gateway. The lowest commissions that we can offer for a high-risk payment gateway are the following: 

* To confirm the exact rates, please contact us via phone, e-mail, Skype or WhatsApp.

* Opening of the high risk payment gateway for physical and legal persons without physical presence. All arrangements are made through e-mail and / or certified mail.