Payment Gateways for NFT Trading Platforms

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Libby James
Merchant Services Expert

Libby James is co-founder, director and an expert in all things merchant services. Libby is the go-to specialist for business with more complex requirements or businesses that are struggling to find a provider that will accept them. Libby is regularly cited in trade, national and international media.

Finding payment processing for NTF trade

The NFT market has grown substantially in recent years – with trading platforms expanding and new start-up traders launching within a growing and hugely profitable market. These platforms are often viewed as high-risk businesses by traditional acquiring banks, therefore finding payment processing for non-fungible tokens can be complex.

Why are NFT platforms high risk?

Within high-street and mainstream banking, NFT trading platforms are seen as high risk. The reason for this is the digital trading world is largely unknown and despite the hype surrounding Cryptocurrency and NTF’s there is still a lack of certainty within these market. Clients using these platforms tend to make large deposits, meaning the transaction amounts are classed as high-ticket itemswhich can be prone tochargebacks. These reasons combined can mean that finding card payment processing for NFT’s and digital assets can be tricky!

High risk Payment Gateways for NFT trading

Finding a high-risk payment gateway provider is difficult at times, there are complexities surrounding criteria which can be hard to understand. To process NFT trading platform transactions businesses will need not only require a gateway provider but also a high-risk merchant account. The company will have to meet criteria for both, not just in terms of acceptable industry type but also with location and currencies processed.


Cost of processing credit card payments for NFT businesses

The fees associatedwith any high-risk merchant account and gateway are higher than those of businesses who could be accepted on the high-street or via banks with lower risk appetite. This is particularly the case if the NTF platform is a new business, with no transaction history. Therefore, it’s important to compare accounts on a pound for pound basis, rather than headline rates alone. It’s also advisable that after a period of solid processing, NTF companies look at switching accounts to reduce costs.

Rolling reserve with NFT trading merchant account and gateway

High-risk gateway providers often ask for a rolling reserve to be kept on account, which in essence counterbalances the risk the bank and gateway onboard by processing NFT platform credit and debit card payments. The rolling reserve will be a percentage of transaction turnover, ordinarily between 10-20% which is then kept for an agreed number of days before settlement is made to the merchant.

NFT payment gateway applications

Applying for an NTF trading payment gateway can be a lengthy process, especially as a new business. It’s important to be prepared to supply paperwork such as business plans, cashflow forecasts, Director documentation etc. Submitting all the paperwork required on application will ensure there are limited delays, however banks often ask for additional paperwork which means the application process can take weeks.


Multi-merchant accounts for NFT companies

When any high-risk business reaches a point where they are processing large volumes of card payments, it’s sensible to have more than one merchant account connected to the payment gateway, NFT businesses are no different. This is due to the fact that banks often change their criteria, so having multi-merchant accounts  connected to the trading platform will limit the risk of being left without payment facilities should the business no longer meet the banks risk appetite.

Declined applications for NFT payment gateways

The landscape of NFT trading platforms is unpredictable, therefore acquiring banks who are always balancing their risk portfolio may change criteria and suddenly be unable to process NFT credit card payments, resulting in a declined application or a letter of termination being served. This is to be expected within such a new high-risk industry.


Alternative payment gateways for NFT trading companies

Despite the potential risk of declined applications or terminated accounts, there are banks who will onboard NFT platforms, largely because the financial gain can outweigh the risk involved. It’s worth seeking the help of an experienced unbiased broker, who can help advise on which banks and gateways will consider NFT applications.

Merchant Advice Service – help with finding a payment gateway for NFT

Merchant Advice Service specialises in providing non-biased advice for high-risk businesses, allowing you to make informed decisions when it comes to finding the best payment gateways for your company. By using industry experts and partnerships, our team can assist in sourcing a NTF trading gateway suited to your requirements.


Commonly Asked Questions
What makes NFT platforms high risk for traditional banks?
NFT platforms are perceived as high risk due to the uncharted nature of the digital trading realm and the potential for high-ticket transactions prone to chargebacks.
Why do NFT businesses need both a gateway provider and a high-risk merchant account?
NFT businesses require a gateway provider for transaction processing and a high-risk merchant account to meet specific criteria, including industry type, location, and supported currencies.
What factors contribute to the higher fees associated with high-risk merchant accounts?
Higher fees are attributed to the perceived risk of chargebacks and the lack of transaction history, especially for new NFT platforms.
Why is a rolling reserve required in NFT trading merchant accounts?
A rolling reserve serves as a risk mitigation measure, with a percentage of transaction turnover held for an agreed period before settlement to the merchant.
How long does the application process for an NFT payment gateway typically take?
The application process can be time-consuming, with the need for thorough documentation, and the timeframe varies. However, preparedness can minimise delays.
Why is having multi-merchant accounts advisable for NFT companies?
Multi-merchant accounts mitigate the risk of losing payment facilities if a bank changes criteria, providing flexibility and continuity for NFT businesses.
What challenges may lead to declined applications for NFT payment gateways?
The unpredictable nature of the NFT trading landscape can result in banks altering criteria, leading to declined applications or terminated accounts.
How can an unbiased broker assist in finding alternative payment gateways for NFT trading?
Unbiased brokers can provide guidance on banks and gateways willing to consider NFT applications, offering valuable insights in a complex industry.

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Libby James

Libby James Co-founded Merchant Advice Service alongside David Bird in 2016. Her finance background, coupled with retail and customer service experience, gave Libby the drive to bring transparency and non-biased advice to the world of merchant services. Having come from the heavily regulated mortgage and insurance industry, Libby found it puzzling that other financial sectors lacked regulation and transparency leaving customers confused and unable to make informed decisions when it came to accepting card payments. This was soon to become Libby’s obsession!

With the help of some of the industry’s best, Libby began to research acquiring banks, complex terminology/regulation, and the problems customers experience within merchant services and payment gateway markets. She spent years on sourcing solutions for complex clients, which previously others were unable to assist with. Libby established relationships with brokers and banks which would soon form the cornerstone of Merchant Advice Service. As a result Libby has been featured in high-profile publications across the web.

Libby is proud to be the entrepreneur’s champion, supporting start-up businesses regularly. Her industry insights can often be found on LinkedIn where she provides free of charge advice and money saving pointers. It’s safe to say she has her finger on the pulse of everything card payments related.

Libby speaks of her experience in founding and running Merchant Advice Service…

‘Merchant Advice Service is one of my greatest achievements to date. We help business owners to overcome card processing issues which can become detrimental to their business. We assist SME’s in finding suitable card payments solutions, helping them create their vision. Each and every day is different, exciting and fore filling. As technology advances I can’t wait to see the way in which the merchant services market advances, and I’m pleased that our business will play a part in educating company owners along the way.’

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