March 23, 2009
Are merchant account providers run by non-US companies?
Cheryl asked:
I heard that merchant account companies are not run by American firms, is this true? Are they still safe then?
I heard that merchant account companies are not run by American firms, is this true? Are they still safe then?
Leave a Comment
Comments on Are merchant account providers run by non-US companies?
They are perfectly safe. It is true that some operate off American shores but they are partnered with European banks that will only accept legitimate businesses as partners. Check out eMerchant Pay.
If you are operating within the US the overwhelmingly vast majority of processors are American based. It is rare, and unnecessary, to go to a company based outside of the US for a merchant account.
As far as safe goes, it isn’t so much a matter of location as it is of type of merchant account provider. Companies that offer true merchant accounts must register with Visa and MasterCard and pass a rigorous series of checks before they are allowed to offer merchant accounts. Third party processors on the other hand do not undergo this kind of scrutiny. As a result many have shut down owing their merchants thousands of dollars or they suddenly find themselves unable to process some credit cards as is the case with CCAvenue with MasterCard (see sources).
To summarize, if you are located in th US the majority of merchant account providers you will encounter will be US-based and safe to use.