Card processing for UK company - non EU director

[mrbraxo]

Hi,
I have recently incorporated a UK company for my online business, I dropship physical products, no high-risk activities involved.
But since I'm not an EU resident or citizen I'm getting rejected by almost every payment gateway.
It would mean a lot if anyone could suggest a payment processor for my situation! thanks

 

[TurnedToRobot]

It would make it alot easier if you mentioned which payment processors you have tried‌ with.

In the meantime, try with Instabill, Stripe, 2co and CCBILL!

 

[mrbraxo]

Thanks for the reply !
I contacted instabill , they didn't have a solution⁠ for UK companies,
I'm not considering Stripe because payout to transferwise is not possible.
2co rejected my request but there was no reason, I guess it's because I'm not an⁤ EU or US resident.
Braintree also rejected but didn't state a reason.
Bluesnap has rejected⁣ my application too
and I haven't contacted CCBILL yet, will do that today !

 

[Sols]

Where are the products dropshipped from and to? What type of products do you process?‌

Do you have any kind of presence in EU?

 

[mrbraxo]

The products are dropshipped from China, I have agreements with a fulfillment center there.
Customers are‍ mainly from the US and CA. Products are car accessories and car-related clothing (we don't⁠ sell automotive parts but we sell interior car accessories).
No, I don't have any kind⁤ of presence in the EU at all.

 

[Sols]

Even if you manage to find a payment processor (acquirer) in Europe, you are going‌ to run into a problem when most of the cards processed on your MID (merchant‍ account) are US and Canadian cards. There rules aren't entirely clear cut but, generally speaking,⁠ the card schemes (Visa, Mastercard) give acquirers a hard time if MIDs are used mostly⁤ for extra-regional traffic.

Sincecard processing is so much cheaper in Europe than elsewhere, the card⁣ schemes are worried about merchants using EU/EEA acquirers to avoid the higher costs of processing⁢ domestically in US or Canada. Especially if all you have in terms of EU presence︀ is a registered address. You can get rejected even as a fully EU-based merchant with︁ company, staff, and warehouse in Europe if you plan to sell to just non-EU/EEA customers.︂

I'm not saying it's impossible, but it's going to be very difficult.

What are your︃ monthly volumes and chargebacks like?

 

[mrbraxo]

Thank you for the information.︃
I process £7k to £10k / month , chargeback rate is 1%.

 

[Kabapy]

I am planning to do a similar setup with a UK company, i am not‌ an EU resident. Which payment processor you end up using with transferwise.

Any suggestions for‍ a payment processor that works with Payoneer account and card

 

[mrbraxo]

See here : List of Banks, EMI's, Payment processors and BTC to FIAT institutions.
Depends on where your passport is from and where you're selling to (I found EU to⁠ be easier than US), you may be able to work with one of the processors⁤ in the list above. Also if you have high volume (€50k+/month) finding a processor will⁣ be much easier.

 

[JohnLocke]

In the past I would have suggested WireCard but today I would look into companies‌ like GlobalCollect and similar.

 

[Kievcash]

Hello,
I like this forum but sometimes its look nooby
All EU processor under license‌ MUST I SAY MUST Follow almost same rules from European Union.

I mean they accept‍ clients that must follow at least this

1- Not to be blacklist by MC AND⁠ VISA
2- Have resident company and directors at the same country in the EU (REAL⁤ COMPANY not PO Box or VO)
3- Have normal business model and with high potential⁣ turnover to cover chargeback risk (small sellers are not welcome usually)
4- Better if you⁢ can proof historic

If you have a UK company, with real office in UK, with︀ only UK director and some normal business model and a UK business bank account.
And if it is not very new company you can apply in UK and you will︁ get a payment gateway.

If it is not like this you will not have, and︂ no processor in Europe will accept you, if they accept you with foreign director it︃ is a breach of License for them and they risk their license.

For Example Klikandpay︄ as I understood lost or is in process to lost is Luxembourg license for this︅ reason, because they breach rules.
so this company will not be able to operate in︆ the EUR very soon or already.

It is not a paradise to process cards, it︇ is closer to hell, you can do it only if you are fully onshore business︈ with high turnover.

Have a nice day