International Merchant Accounts for High-Risk Businesses: Cross-Border Acquiring Guide
An international merchant account is not simply a way to accept a card issued in another country.
For businesses with more complex payment requirements, international acquiring can involve several separate questions:
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Where is the merchant legally incorporated?
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Where is the business actually managed?
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Where are its customers located?
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Which countries does the payment provider support?
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Where will transactions be acquired?
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Which legal entity will contract with the acquirer?
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Which entity will receive settlement?
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Does the provider support the merchant's business sector?
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Are licences or regulatory permissions required?
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Which currencies and payment methods are needed?
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Does the business need one acquiring relationship or several?
These questions become particularly important for businesses operating in higher-risk, regulated, cross-border or harder-to-place sectors.
Merchant Advice Service provides free, independent guidance to businesses comparing merchant accounts and payment providers, including merchants requiring international acquiring, overseas coverage or more complex payment structures.
Read more about how Merchant Advice Service works.
What Is an International Merchant Account?
An international merchant account is an acquiring arrangement that supports a business processing card payments across international markets.
However, the phrase can mean different things depending on the provider.
It might describe:
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A UK merchant account that accepts cards issued overseas
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A UK business using an acquirer with wider international coverage
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A merchant using an acquiring relationship in another European country
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A global business using different acquirers for different regions
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A higher-risk business using a specialist international acquirer
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A business with several legal entities and different acquiring arrangements
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A merchant using one payment gateway connected to several acquirers
This is why asking for an "international merchant account" is often too broad.
A provider needs to understand where the business is based, where customers are located, what is being sold and how the payment flow needs to work.
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International Acquiring Is Not the Same as Accepting Foreign Cards
This distinction matters.
A UK merchant may already be able to accept Visa or Mastercard cards issued overseas through its normal acquiring arrangement.
That does not necessarily mean the business has an international acquiring strategy.
For example, compare these two businesses.
Business A
A UK retailer takes 95% of its sales from UK customers and occasionally accepts cards from visitors from Europe or the US.
It may not need a specialist international merchant account.
Business B
A UK-based online platform sells across the UK, Europe and North America, operates several websites, processes significant overseas turnover and needs different currencies, payment methods and acquiring routes.
Its requirements are considerably more complex.
The second business needs to think about the structure of its acquiring arrangements, not simply whether an overseas-issued card can technically be accepted.
If your main requirement is accepting and settling different currencies, see our guide to Multi-Currency Merchant Accounts and International Card Payments.
What Is Cross-Border Acquiring?
Cross-border acquiring broadly describes an acquiring arrangement where the merchant, customer and acquiring relationship span different countries or regions.
For merchants, the important question is usually:
Where is my transaction being acquired and does that acquiring structure properly support my business?
An international payment can involve several locations at once.
For example:
UK company + Spanish customer + EUR transaction + European acquiring relationship + settlement to the merchant's approved account
The provider will need to understand the whole structure.
Visa and Mastercard both operate international card networks with rules applying to merchants, issuers and acquirers, including regional and country-specific requirements. Their formal rules can change, which is one reason merchants should confirm the final arrangement directly with their provider.
The Three Locations an International Merchant Should Understand
When businesses tell us they need "international payments", one of the first things to establish is which locations actually matter.
1. Merchant location
Where is the company that is entering into the merchant agreement?
This may be different from where the founders live or where customers are located.
2. Customer location
Where are the people or businesses making payments?
Providers may be comfortable with customers in some countries but restrict or prohibit others.
3. Acquiring location
Where is the acquiring relationship supporting the transaction?
For larger international businesses, acquiring location can become part of the wider payment strategy.
These three locations should not be treated as interchangeable.
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Can a UK Business Use an International Acquirer?
Potentially.
Whether an international acquirer will consider a UK business depends on the provider, its acquiring licences and structure, the merchant's activity and the countries involved.
Providers may consider factors including:
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Company incorporation
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Director and UBO locations
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Customer countries
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Business sector
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Merchant Category Code
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Processing history
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Transaction values
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Monthly turnover
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Chargeback exposure
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Fraud profile
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Licences and regulatory permissions
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Settlement requirements
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Payment currencies
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Website and customer journey
An international provider should not be viewed simply as a way around the underwriting requirements of a UK provider.
The merchant still needs to disclose its business accurately and pass the provider's own due diligence, compliance and underwriting checks.
Why Do High-Risk Businesses Look for International Acquiring?
There are several legitimate reasons.
The required sector is not supported by the existing provider
Some acquirers specialise in particular industries or business models.
A business might need an international provider because its current UK provider does not support the activity.
The business is expanding into new markets
A provider suitable for a UK-only business may not support the countries required as the merchant expands.
The merchant needs broader geographic coverage
This may apply to businesses operating across several regions or customer markets.
The business requires a second acquiring route
Larger or more complex businesses may want to reduce operational reliance on one provider.
Any secondary acquiring relationship should be properly disclosed, approved and technically integrated.
The merchant's existing account is being withdrawn
A merchant may need to explore alternative acquiring arrangements after receiving notice that an account will be terminated.
If this applies to your business, read our guide to Understanding Terminated Merchant Facilities.
The current provider cannot support the required payment structure
The issue may relate to countries, currencies, payment methods, transaction values, integration or business model rather than risk alone.
International Acquiring Is Not a Way to Hide a High-Risk Business
This is particularly important.
If a UK provider declines a business because it does not support the sector, applying overseas does not mean the underlying activity should be described differently.
A specialist international acquirer will still want to understand exactly what the merchant does.
Businesses should be transparent about:
A business is usually better served by finding a provider that knowingly supports the activity than by trying to make the application look lower risk than it actually is.
Our High-Risk Merchant Account Application Guide explains how businesses can prepare before approaching providers.
Which High-Risk Businesses May Need International Merchant Accounts?
International acquiring can arise across many sectors.
Examples include:
Online gambling and gaming
Operators may have players across several countries, different licences, multiple currencies and different deposit or withdrawal requirements.
Read our guide to Online Gambling Payment Processing.
Travel
Travel businesses frequently sell to customers in different countries and may also have higher future-delivery exposure, high transaction values and multiple currencies.
Read our guide to Merchant Accounts for Travel Businesses.
Cryptocurrency
Crypto exchanges and other cryptocurrency-related businesses may operate internationally while also facing additional regulatory, AML, fraud and underwriting considerations.
Read our guide to Crypto Merchant Accounts and Card Payment Processing.
Forex and trading businesses
Foreign exchange and trading businesses can have specialist regulatory and acquiring requirements.
This is different from ordinary merchants looking to reduce foreign exchange costs on international sales.
Subscription businesses
Subscription companies may acquire customers across several markets and need recurring payments, stored credentials, multiple currencies and appropriate acquiring coverage.
Marketplaces and platforms
Businesses collecting or moving funds between several parties need to establish whether their model creates additional payment-services or regulatory considerations.
The FCA notes that certain marketplaces and businesses receiving customer money before passing it to another party may be providing regulated payment services, depending on the model.
Read our guide to Marketplace Payment Gateways.
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Does the Country of Incorporation Matter?
Yes.
The legal entity applying for a merchant account is a fundamental part of the application.
A provider may ask:
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Where is the company incorporated?
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Where does it trade?
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Where is management based?
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Where do the directors live?
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Where are the ultimate beneficial owners based?
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Which entity owns the website?
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Which entity contracts with customers?
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Which entity receives settlement?
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Does the company have genuine operations in that jurisdiction?
Creating or using an overseas entity does not automatically make payment processing easier.
It can introduce additional due diligence, banking, tax, regulatory and operational requirements.
The acquiring structure should reflect the real business.
Does the Director or UBO Location Matter?
It can.
International payment providers often look at more than the company's registered address.
They may also examine the residency or location of:
A provider may support companies incorporated in one country while restricting ownership or management from certain other jurisdictions.
The exact criteria are provider-specific.
This is another reason why two businesses incorporated in the same country can receive different underwriting decisions.
How Do Customer Countries Affect Merchant Account Approval?
Customer geography can materially change the risk assessment.
A provider may want to understand:
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Where customers are located
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Percentage of turnover by country
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Whether certain countries are blocked
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Where cards are issued
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Whether the merchant actively markets into those countries
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Whether licences are required
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Whether the products or services can legally be supplied there
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Fraud levels by territory
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Chargeback levels by territory
Businesses operating internationally also need appropriate sanctions and compliance processes.
The UK Government maintains the UK Sanctions List and current sanctions regimes, and UK businesses may need to consider sanctions obligations when dealing with customers, counterparties and transactions in international markets.
Where a business is unsure about its regulatory or sanctions obligations, specialist legal or compliance advice should be obtained.
How Do Licences Affect International Merchant Accounts?
For regulated or restricted industries, a provider may need to understand not only whether the merchant has a licence, but also:
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Who issued it
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Which legal entity holds it
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Which activities it covers
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Which territories it covers
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Whether customers in the target country can legally use the service
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Whether the acquiring entity is comfortable with that licence
This can be particularly relevant for activities such as gambling, financial services and certain cryptoasset businesses.
A licence in one jurisdiction does not automatically mean the merchant can trade or acquire payments in every other jurisdiction.
The regulatory assessment is separate from the payment provider's own underwriting decision.
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What Is the Difference Between International and Offshore Merchant Accounts?
These terms are often used interchangeably, but they should not be.
International acquiring
An international acquiring structure supports a merchant processing across different countries or regions.
There may be clear commercial reasons for using it, such as geographic expansion, local acquiring or specialist sector support.
Offshore merchant account
"Offshore merchant account" is generally used to describe an acquiring relationship in a jurisdiction outside the merchant's main home market.
That does not automatically make the arrangement good, bad, cheaper or easier to obtain.
The real questions are:
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Who is the acquirer?
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Where is it regulated?
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Which entity signs the contract?
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Where is settlement held?
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What protections apply?
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Which card schemes does it support?
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What happens if funds are withheld?
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Which law governs the contract?
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Is the arrangement appropriate for the merchant's actual business?
Businesses should be particularly cautious about any proposition that suggests an overseas merchant account will remove normal due diligence, regulatory or card-scheme requirements.
When Does International Acquiring Make Sense?
It can make sense where there is a genuine commercial requirement.
Examples include:
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Significant international sales
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Expansion into new customer markets
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A specialist high-risk sector
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Regional acquiring requirements
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Several legal entities
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Multiple currencies
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Local payment methods
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A requirement for more than one acquiring bank
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Business continuity planning
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International subscription billing
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Marketplace or platform requirements
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A provider that cannot support the required countries
It is usually a poor reason to choose an international acquirer simply because the provider appears easier to apply to.
Do International Merchants Need More Than One Acquirer?
Sometimes.
Using more than one acquirer can be relevant for larger or more sophisticated businesses.
Potential reasons include:
However, multiple acquiring relationships also create additional complexity.
The merchant may need to manage:
This is why a multi-acquirer strategy should solve a genuine problem rather than simply add more providers.
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Can One Payment Gateway Connect to Several International Acquirers?
Potentially.
Some gateways and payment orchestration platforms can connect a business to several PSPs or acquiring relationships.
This can make it possible to route transactions according to factors such as:
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Country
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Currency
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Acquirer
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Payment method
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Transaction type
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Provider availability
But gateway compatibility should be checked before agreeing to the acquiring structure.
Important questions include:
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Does the gateway support each acquirer?
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Who owns or controls the payment token?
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Can existing tokens be migrated?
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How are refunds routed?
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How are recurring transactions handled?
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How is 3D Secure managed?
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Can reporting be consolidated?
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What happens if one acquiring relationship ends?
See our Payment Gateways Guide for more detail.
International Acquiring and Multi-Currency Payments
International acquiring and multi-currency processing overlap, but they are not the same thing.
A business may use an international acquirer but still settle everything in GBP.
Another business may use a UK acquiring relationship while allowing customers to pay in several currencies.
If currencies are the main issue, establish:
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Presentment currencies
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Settlement currencies
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FX conversion
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Settlement accounts
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Cross-border charges
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Local payment methods
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DCC
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Currency reporting
Our Multi-Currency Merchant Accounts and International Card Payments Guide covers those areas in detail.
What Documents Do International High-Risk Merchants Need?
Requirements vary considerably between providers.
A more complex international application may include:
Company documents
Financial information
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Bank statements
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Financial accounts
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Management accounts
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Forecast turnover
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Funding information
Payment history
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Previous processing statements
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Monthly turnover
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Average transaction value
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Maximum transaction value
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Refund rate
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Chargeback ratio
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Fraud information
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Previous acquiring relationships
International activity
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Customer countries
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Revenue by territory
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Currencies
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Settlement requirements
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Overseas entities
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Local licences
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Country restrictions
Website and customer journey
Regulatory and compliance documents
Where relevant, this may include:
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Licences
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Registrations
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AML policies
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KYC procedures
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Sanctions controls
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Compliance contacts
Providing a clear application pack does not guarantee approval, but it gives the provider a better basis on which to assess the business.
How Much Does an International High-Risk Merchant Account Cost?
There is no standard international high-risk processing rate.
Pricing may depend on:
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Industry
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Customer countries
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Card mix
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Acquiring region
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Monthly volume
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Transaction values
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Chargeback history
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Fraud exposure
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Processing history
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Settlement requirements
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Currencies
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Reserve requirements
Commercial terms may include:
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Percentage processing fee
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Per-transaction fee
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Gateway fee
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Cross-border charges
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Currency-conversion costs
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Chargeback fees
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Monthly fees
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Rolling reserve
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Minimum monthly processing commitments
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Settlement delays
The lowest headline processing percentage is not necessarily the lowest overall cost.
Businesses should compare the full commercial arrangement.
What Is a Rolling Reserve on an International Merchant Account?
A rolling reserve is a proportion of processed funds temporarily retained by the provider to cover potential future liabilities.
Whether one is required depends on the provider's assessment.
Factors can include:
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Business model
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Future-delivery exposure
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Chargeback history
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Refund risk
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Transaction values
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Processing history
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Customer geography
Reserve terms should be understood before signing the merchant agreement, particularly where the business processes significant volume.
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What if my UK Merchant Account has been declined?
A declined UK application does not automatically mean an international provider is the answer.
First establish why the application was declined.
Possible reasons include:
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The provider does not support the sector
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The provider does not support the countries required
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The transaction values are outside appetite
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The business does not have sufficient processing history
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The regulatory structure is unsuitable
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Website or application information is incomplete
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Chargeback or fraud exposure is too high
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The provider cannot support the technical requirements
Once the reason is understood, it becomes easier to determine whether another UK provider, a specialist acquirer or an international acquiring route is more appropriate.
Read What to Do If Your Card Processing Application Has Been Declined.
What if my existing Merchant Account is being terminated?
If a provider has given notice that it intends to close an account, do not assume moving the processing overseas automatically solves the issue.
Try to establish:
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Why the facility is being terminated
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Whether the provider's risk appetite changed
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Whether chargeback or fraud levels triggered the decision
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Whether the merchant activity changed
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Whether card-scheme action is involved
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Whether settlements are being withheld
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Whether the termination must be disclosed to future providers
A replacement provider will normally need an accurate picture of what happened.
Read our guide to Terminated Merchant Facilities.
Questions to Ask an International Merchant Account Provider
Before signing an international acquiring agreement, ask:
About the acquiring relationship
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Which acquiring bank will process my transactions?
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Where is the acquiring entity based?
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Which legal entity am I contracting with?
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Which countries can you support?
About my business
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Have you fully approved my actual business model?
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Which MCC will be used?
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Are all my customer countries approved?
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Are there prohibited territories?
About settlement
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Where will funds be settled?
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Which settlement currencies are available?
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What is the normal settlement period?
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Can settlement terms change?
About reserves
About costs
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What is the processing rate?
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Are there cross-border charges?
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What are the FX costs?
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What are the chargeback fees?
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Are there gateway or monthly fees?
About the contract
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What is the minimum term?
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What notice is required?
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Which law governs the agreement?
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What happens to unsettled funds if the account closes?
About technology
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Which gateways are supported?
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Can the provider support my existing integration?
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Can I use more than one acquirer?
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Who controls stored payment tokens?
For high-risk merchants, these questions can be more important than simply asking which provider has the lowest advertised rate.
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How Merchant Advice Service Helps With International Merchant Accounts
Merchant Advice Service provides free, independent guidance to businesses comparing merchant accounts, acquiring arrangements and payment gateways.
International requirements can be particularly difficult to compare because the answer depends on much more than where the payment provider is located.
1. We establish the business structure
We look at:
2. We identify the actual acquiring requirement
A business may need:
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A UK specialist acquirer
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Wider international acquiring coverage
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A provider with specific sector appetite
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A second acquiring route
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Multi-currency functionality
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A different payment gateway
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An international payment structure
3. We look for providers whose criteria appear relevant
Where appropriate, MAS may identify payment providers or specialist brokers whose stated services and current appetite appear suitable for the requirements provided.
You can also explore The Payments Directory®, where providers can be filtered by factors including business type and location.
4. The provider makes the final decision
Merchant Advice Service does not approve merchant-account applications.
The acquirer or payment provider carries out its own due diligence, compliance assessment and underwriting before deciding whether to accept the business and on what terms.
Read more about how Merchant Advice Service works.
Looking for an International Merchant Account?
International acquiring is rarely just a question of finding a provider based outside the UK.
The right arrangement depends on your business model, company structure, customer countries, processing history, regulatory requirements, currencies and technical setup.
Merchant Advice Service can help you understand those requirements and identify potential payment-provider routes.
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Sources and further reading
This guide has been prepared using current card-scheme, regulatory and UK Government information alongside Merchant Advice Service's practical experience of complex merchant-account requirements.
More Guides From Merchant Advice Service
Merchant Advice Service is not tied to one provider and does not make underwriting decisions. Businesses do not pay MAS for its initial matching and introduction service; MAS may receive a commission from a partner following a successful introduction.
This article provides general payments information and is not legal, accounting, regulatory or tax advice. International acquiring, licensing, sanctions, tax and regulatory requirements depend on the individual business model, jurisdictions and countries involved. Obtain specialist advice where required and confirm current requirements with the relevant authorities and payment providers.
