Finding payment processing for NFT 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 items, which 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.
