Merchant account for an online shop
Merchant account for an online shop
For the past 20 years, online commerce has been a major way of doing business, thanks to the availability and expansion of the internet around the world. However, it is worth noting that the standard business structure controlled by banking institutions has not changed in over a century. According to a report by the World Economic Forum, decentralized payment systems based on blockchain technology have the potential to change these practices and show the world more secure and reliable formats for internet transactions.
Blockchain has been shown to be able to outperform and update these outdated systems and create a more open, fast and low-commission flow of worldwide payments.
These factors led to the development of a new direction in the company’s structure and as of 2018, after several years of intense development, we are pleased to offer you a new service – the opening of a merchant account to accept payments in cryptocurrencies. This innovation has already been appreciated by customers on our merchants’ websites as well as WELLCOINEX partners.
What is a merchant account?
A merchant account is a special account that receives money from different payment systems for goods or services sold. Payment systems can include bank cards (Master Card, Visa, American express, etc.), electronic money (Qiwi, Yandex Money, Web Money, PayPal, etc.).
WELLCOINEX now offers a merchant account for cryptocurrency acceptance.
The online payment process with a merchant account is as follows:
- The buyer clicks on the “Buy” button (or similar) and is taken to a page where they can choose the most convenient method of payment and click on the appropriate button.
- It takes you to a secure payment page, where you enter the necessary details Depending on the method chosen, these are different, as are the different methods of identification – for payment by card you will need to enter a one-time password, which will come in a text message. For Yandex Money and Qiwi, you will first need to enter a password to access your e-wallet and then enter a password from a text message to make the payment.
- If the payment is successfully completed, the buyer will see a notification. In the event of rejection, the reason will be given.
To operate this scheme, in addition to the buyer and seller, it involves an acquiring bank which provides the seller with a merchant account and a processing center which carries out secure communication between the seller, the buyer, the acquiring bank and the issuing bank or electronic payment system.
Having a merchant account greatly simplifies online trading, thanks to the following advantages:
- Versatility – customers can pay for goods/services in any way they like – with a bank card, with their e-wallet, with cryptocurrency.
- Reliable – all operations are securely protected by special software.
- Convenience for the seller and the buyer.
Together, these qualities of a merchant account allow you to increase your trading volume and earn more profits.

What problems can I forget about using a cryptocurrency merchant account?
- Complex and time-consuming integration;
- Rolling reserve from 10% for 180-360 days;
- Difficult to withdraw funds from the merchant account;
- Frequent failures in payment acceptance and consequent client loss;
- Dependence on conditions and fees of issuing banks and acquiring banks;
- Account blocking by the acquirer for an arbitrary period with no ability to influence the outcome;
- High risk of refunds and chargebacks;
- Many intermediaries and long feedback times.
In the past, connecting a merchant account required overcoming a series of bureaucratic hurdles, waiting for the favour of the banks and receiving disappointment instead of the promised solution, but thankfully that is history. Progress continues and cryptocurrency, a digital currency based on blockchain technology, has replaced fiat currency. Thanks to the improved payment system, it is possible to make payments without any information leaks and without any third-party payment partners. The WELLCOINEX merchant system only offers proven, promising cryptocurrencies such as BITCOIN, ETHEREUM, IOTA, DASH, BITCOIN CASH, LITECOIN, RIPPLE, EOC, WAVES, ZCASH, NEO.
The main reason for opening a merchant account in cryptocurrency is to reduce costs, consequently gaining customer loyalty due to low commissions when paying for your products or services. Also, don’t miss the main advantage of connecting such an account by simply installing a payment button on your website, so that within 24 hours of contact, your site is ready to accept funds from your customers using e-cards. Regardless of the factor that influences your decision, you will receive a number of undeniable benefits from our partner.
The main benefits of a cryptocurrency merchant account:
- No lengthier negotiations between your company and the Equator bank, which can slow down or dispute payments from your customers.
- 24/7 you enjoy a hassle-free system that includes, merchant account, cryptocurrency exchange and funds transfer to your merchant account.
- Compared to the bank fees we are accustomed to; you will save significantly on all transactions. Use the familiar blockchain-enabled credit and debit card service.
- A new geography for your business. Your customers will now be able to pay for goods or services with a wider geography that was closed to you by the customer’s IP or BIN of their card.
- There is no excessive monitoring of transactions, as the necessary data is in the public domain and thus eradicates the possibility of fraud. All changes to customer data are instantly disseminated to blockchain participants.
- Transactions made through a cryptocurrency merchant account are not likely to be charged back, as compared to transactions made by bank card. The chargeback procedure for your dishonest customer will now be difficult to implement.
Of course, such a decentralized system implies that any entrepreneur on the Internet will be able to accept payments using this innovation of the currency system, and the minimum requirement for this is a website for your company.
However, our team is careful in selecting merchants and activating accounts. We do not cooperate with companies that violate the law. Due to the simple system of approving merchants, we will have to constantly monitor the privacy policy and pages of your website for changes. Our KYC/AML processes are reduced to a simple automated check and we have the necessary base of security knowledge to prevent individuals who are blacklisted from executing transactions or attempting to buy/exchange cryptocurrencies.
Merchant account for an online shop – what are the benefits
Having a merchant account and a cryptocurrency merchant account expands the payment options for the buyer. In this way, a wider audience of potential buyers is reached.
For online shops related to high-risk businesses (medicines, precious metals, drugs, 18+ industry, etc.), having a cryptocurrency merchant account can greatly expand the audience of customers (cryptocurrency is known to be particularly in demand in this kind of business because of its anonymity). Plus, there is no chargeback, which, again, is very relevant for such a business.
To these advantages are added those already mentioned earlier:
- minimal commission;
- no acquiring bank in the scheme, whose actions may interfere with the activities of the online shop;
- significant reduction in the likelihood of fraud.
Let’s stress it again. You can open a merchant account and a cryptocurrency merchant account at WELLCOINEX.
How does cryptocurrency payment technology work on the website?
It’s time to learn the hard-to-understand words: blockchain, decentralization, cryptocurrencies, merchant account, transactions, issuing bank, acquiring. Because making a decision today and using this innovative payment method will save you time and money, which are vital resources for your business.
Blockchain is a continuous chain of blocks lined up according to certain rules with matched keys, each one encrypting a key from the previous block and linking everything into one network. The main advantage is that it is impossible to replace past data.
Decinralisation – there is no single server to store the data. The database is stored on all the PCs that are part of the blockchain structure.
Cryptocurrencies are digital currencies whose creation and control are based on cryptographic methods.
A merchant account is a technological solution that allows you to accept bank cards for payment for goods or services. Such a merchant account has a capacity for many transactions per minute.
A transaction is a meaningful and fully completed transaction, a term usually used in the world of payments and or financial exchange.
An issuing bank (or issuing bank) is a bank that issues banknotes or bank cards and cheques.

Cryptocurrency acquiring how does it work?
Thanks to our group of companies, Merchant can fully cover its payment acceptance needs regardless of whether it is resident in an Offshore jurisdiction, whether or not it has a license (for cryptocurrency, gambling, betting, forex).
The merchant signs a SaaS agreement to rent our software solution and installs a payment button on their resource. Merchant can then accept cryptocurrency payments under our license.
The WELLCOINEX service acts as a kind of counterpart to coinbase – a secure infrastructure in which cryptocurrency, all analytics and transaction history are stored. From there, Merchant is also able to transfer cryptocurrency to other users or receive cryptocurrency cash to Merchant’s wallet or to his ‘account’.
If Merchant accepts payment in a cryptocurrency other than the one the User has, the User is immediately offered the option to make an exchange via our cryptocurrency exchange service when paying via the widget. These options will be mutually integrated and automated.
This functionality is accompanied by a fiat part, which allows a user who does not have a cryptocurrency, or who wants to pay by card, to automatically purchase the desired cryptocurrency directly in the widget via our cryptocurrency exchange.
The user is shown the cryptocurrency purchase rate online. The merchant, on the other hand, can receive funds from the User either in cryptocurrency or in fiat currency. In this case, we reverse the conversion from digital currency to fiat currency and make the payment to the Merchant in his current account.
For the user, this card payment transaction will go through MCC 6051 instead of 6211/7995 etc. and will go through both the issuing bank and the acquiring bank smoothly and legally.
As an additional option the User and Merchant will be offered to use our crypto-exchange… This will allow both Merchant and User to more quickly dispose, exchange, send, receive fiat and crypto as this wallet will be integrated into all services and companies described above in the near future. It is also an additional guarantee of security for all parties involved in the transaction and a faster way of connecting and consequently easier access to funds.
The WELLCOINEX team believes that every company client will be able to appreciate all the benefits of paying on their website in cryptocurrency. Our goal is to be a long-term partner and leading provider of payment services for organizations of all sizes, enabling all participants to successfully compete and progress in today’s marketplace.
Ways to connect a merchant account
A merchant account can only be opened in the name of a legal entity. If you want to have a merchant account with a bank, you must meet certain, quite stringent criteria and undergo a complex and time-consuming verification process.
The standard requirements include:
- Provide the necessary documents – list of business activities, information on the company’s beneficiaries, including tax returns, agreements with counterparties, suppliers and show which model of KYC and AML procedures the entrepreneur is following.
- Post information on the company’s customer service policy, privacy policy, how the company combats terrorist financing and money laundering.
In our experience, when a merchant company contacts a bank about opening a merchant account, the latter starts a long KYB check.
To speed up the process, we recommend contacting our company WELLCOINEX, which deals with this issue every day. You can apply through our representatives on the website.
Our experts can help reduce and simplify the process of obtaining a merchant account for your company. This is especially true for legal entities wishing to operate in foreign markets. In this case, they need to:
- A bank account with a foreign bank. And to do this you need to find a bank that is willing to work with you. This can be a long process, especially if your business is high risk.
- Connect your website to international payment systems.
With WELLCOINEX, all these problems can be solved much more easily.