Payment Service Provider
After the forex broker has attained a corporate that could allow the receiving and transmitting of funds, the next thing would be to apply for another account that could help them receive payments through credit cards and other payment gateways. This kind of ‘merchant account’ allows the broker to accept deposit payments from their clients at the convenience of their websites, accepting through payment gateways such as Visa, Mastercard, AMEX, UnionPay, Diners, JCB or even Bitcoin. The broker will apply for this merchant account via a Payment Service Provider, PSP in short.
The merchant account functions almost similar to the corporate bank account. When clients successfully deposit funds into their forex account, the amount is almost immediately transmitted into this merchant account after deduction from the clients’ credit cards or debit cards, and the company can manage fund movement from this account and accept different form of payment. Credit card, debit card, wires, Bitcoin, and other payment gateways. Some payment providers through their technological advancements are able to credit funds immediately into the trading accounts of clients so that clients could be able to trade immediately after funds are successfully accepted through their gateways. A corporate bank account, an online merchant account to accept credit or debit card payments, a forex website, are the essential tools to run a successful forex broker, cryptocurrency exchange, or any web-based business.