Recommendations on choosing a Bank and payment system, legal expertise and protection from online fraud. The material was prepared with the support of the Maxpay.
If the company enters the international market, it should be ready no problem to accept money from overseas customers. For this you need an account in foreign Bank. The law does not prohibit Russian companies to open accounts abroad, but foreign banks are sometimes reluctant to cooperate with companies registered in Russia. On vc.ru — material on how to start the development of foreign markets, and how to avoid common mistakes and to prevent fraud.
Maxpay helps companies who sell through the Internet, to develop new markets and accept payments from around the world. The service examines the business of the client and selects the most appropriate payment solution. Then prepares all the documents for company registration in your desired country helps to open a Bank account for receiving electronic payments, it connects to the site of the payment system and protects the business from fraudulent transactions. For example, the owner of an online store or other e-business decided to grow and enter foreign markets.
In order to accept money from foreign customers need to open a foreign Bank account and connect your website to payment systems. So the first thing the entrepreneur should find the Bank that works with the ecommerce, i.e. business that sells products and services via the Internet. A pick up Bank rates and open an account where less Commission, but doing so is not worth it. First you need to study the requirements of the Bank. The fact that the Bank may not serve a high-risk e-business.
Forex, Dating sites, auction sites, games sites and those who sell goods and services via subscription. If you do not take this into account, the Bank may block the account and put the business at risk. Most often businessmen from Russia and CIS countries open Bank accounts in Latvia and Cyprus, but the banks in these countries to the CIS consumers are wary, suspecting them of “laundering” money.
Banks begin a detailed inspection, which is often delayed by time. A good solution in this situation is to open an account in a financial institution which has a license for conducting of payments and issue electronic money. Such institutions are not banks, but have the right to maintain merchant accounts. An entrepreneur can apply to the company, which will open a foreign Bank account through an intermediary firm, but in this case it is necessary to notify about opening of accounts and tax each quarter to provide information about the movement of money in the account with a notarized supporting documents. So often, the entrepreneur registers a subsidiary company abroad.
Ideally, if the acquiring Bank, accepting payments from clients and issuing Bank whose card paying customers, are in the same country. This helps to increase the conversion of orders due to a decrease in the percentage of cancelled transactions and support popular payment methods. But the final country selection for registration of a company depends on the type of business, geostructure traffic of payments, marketing strategies and the specifics of legislation and taxation. Typically, entrepreneurs turn to a law firm to help them prepare the necessary documents for company registration and account opening.
If your legal company works in good faith, then it will first examine the clients business will determine which Bank is best to open a merchant account to receive electronic payments. Then the Bank will examine the requirements for opening an account and then select the country in which it is most advantageous to register a company. But it is different. Sometimes legal company do not delve into the peculiarities of electronic business and working on the pattern. Register your company at your own country and open a new Bank account from a friend of the Manager.
It happens that the company is preparing an incomplete package of documents, which the entrepreneur runs the risk of losing money and losing business. In our practice we are often faced with a situation where for the services of registering a company abroad and open an account customers were paying 5-6 times. We had a client who paid for the account opening of $20 thousand, although the right account can be opened for $3 thousand. Another case when the client asked the law firm, he prepared the necessary documents for registration of the company abroad and helped to open a Bank account. Legal the company was unable to execute the necessary documents and a Bank account opened with errors.
Due to the fact that the client did not declare the type of their activity, he had problems with the service of financial monitoring of the Bank. The Bank has checked on the basis of what the client came by the money and blocked the account, because it is not working with e-business. We converted all the documents to register the offshore company in the country, has issued a Bank account and connected to the payment system. The work of the legal company you can check.
The first thing you need to ask her to provide a complete list of documents required for company registration and registration of Bank accounts. Usually to register a company you need two main document. Charter and certificate of incorporation certified by a notary. But each country has its own requirements, so the list of documents may be different. After the company opens the merchant account (the merchant), you need to ask Bank statement KUS (Know Your Customer), which will contain all the available information on the merchant.
The choice of payment system depends on the preferences of customers. For example, in Europe and the United States popular payment with credit cards and PayPal, in Africa people often pay using mobile phones, and in Asia and Latin America used e-wallets. First and foremost, you need to look whether the payment system to non-residents or serves only to companies registered in a certain country.
If the merchant marketplace (marketplace) or an aggregator of payment, it is necessary to check whether the payment system of mass payments. If the merchant sells monthly access to the product, you need to know, does the service regular subscription fees. Well, if the payment system allows you to customize the design of the payment page that it is not different from the General style of the website. If the payment page and the style of the website is very different, it may scare off buyers. You also need to pay attention to technical support.
It is important that it was available and quickly answered. When the merchant starts accepting payments, he faces fraud — fraudulent transactions. Fraudsters steal data foreign payment cards and pay for their purchases. If the cardholder will notice that his account is credited for the purchase, which he did not commit, hell go to your Bank and ask to cancel the payment.
This operation is called a chargeback. The Bank will investigate, and if the transaction was fraudulent, will refund to the card holder. In the end, suffers the merchant. He sold the goods, rendered service, but has not received the money. If the number of fraudulent transactions will reach 1% of the total amount of all payments from Visa and 1.5% for MasterCard, the merchant can be fined and even close the account.
The penalties are not small — from $5 thousand to $200 thousand. To protect yourself from fraudulent transactions, it is necessary to check the reliability of the buyer before making the payment. For example, with the 3D-secure system antipoda. With 3D-secure, everything is clear.
The Bank sends an SMS to the phone number linked to the card, and asks you to confirm the payment. This protects the seller from scammers that are trying to pay for a purchase with a stolen card, but significantly reduces the conversion. Not all banks and cards support 3D-secure and not all buyers tied to the map your phone number. In addition, an experienced fraudsters can bypass 3D-secure and intercept SMS.
Anti — fraud this service with the algorithms that protects the seller from fraudulent transactions. For a more accurate risk assessment Maxpay has developed a system of checks Covery, which uses its own Analytics, machine learning, and uploaded to the system developments merchant. Thus anti-fraud protection is configured for each merchant. Unlike standard anti-fraud systems, Covery collects information about each purchaser at the stage of registration on the website.
By the time when the buyer click “pay” Covery has already analyzed his actions and checked the buyer on the basis of global online fraud. If the buyer will cause suspicion, Covery will block the transaction. Covery uses Events API and the API Decision, while other systems only Decision API. Events API collects and analyzes even the information that is not directly related to registration and payment. It helps at the stage of transaction to make more accurate decision.
Decision API — a simple model analysis, which analyzes the data that the buyer provided for registration and payment. Each merchant can configure Covery under him. To download to the database practices of their analysts and add to the standard scenarios, analysis of their own rules. For example, it can create a rule with the following conditions. If the online store is in Germany, the card was issued in the United States, and the payer is now in China, then the transaction will get the same amount of points, which defined analyst.
The points received on all triggered transaction rules are summarized. The lower the score, the more reliable the transaction. Depending on the amount of points the transaction may be automatically rejected, returned for additional manual inspection or automatically carried out.
Now Covery checks 5 million transactions daily, and this is not the limit. To check one transaction takes 0.5 seconds. Anti-fraud need not all. It all depends on the company size, product type and payment methods.
If a company makes tables and chairs and accepts payment from legal entities by Bank transfer, the probability of fraud is very small — to be protected from whom. If the company sells virtual goods (subscriptions, tickets, applications), but the payments takes within their own country, can be limited by anti-fraud solutions payment system. Companies that accept payment from different countries, will need more serious protection, like Covery and similar anti-fraud systems. In 90% of cases the responsibility for fraud and chargeback is passed on to the merchant. Even if the company has a high turnover, but it does not control risks that it can turn millions of loss due to fraud on the part of the payer, and b2b partners.
Choosing a Bank, you need to examine its requirements for the client. Tariffs and the Commission is not the most important. Another option.
Choose a financial institution with a license to make payments and issue electronic money. 2.When you seek legal expertise necessary to ensure that the company provides quality service not working “pattern”. To check the work of lawyers can and should be. Choosing a payment system, should take into account peculiarities of the region and type of business.
Also of importance technical “flexibility” of the system. Is it possible to customize the design of the payment page, always available technical support. 4.Taking payments, you need to be able to protect yourself from fraud. Otherwise, you can “burn” on one only the fines. Anti-fraud services analyse customers and help to avoid trouble.
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