Any business needs a payment gateway to authorize and process payments as well as a merchant account to receive the funds it was paid. While there are payment service providers (PSP) that provide both services, businesses that use payment service providers are more likely to have their funds frozen or their accounts terminated, especially if their PSP deems them to be high-risk. Losing the ability to accept electronic payments is a huge blow, particularly for startups or medium-sized companies.


Many companies that are active in high-risk industries, such as forex, cannabis, and igaming, have experienced this first hand. Besides having to deal with high PSP processing fees, these companies also have to deal with frozen funds or accounts on a regular basis. While there is also the option of using a combination of a merchant acquirer and a payment gateway instead of a PSP, this often is a more expensive alternative than using a PSP.


Payment service providers vs merchant acquirers

While payment service providers group all companies into one large merchant account, merchant acquirers provide each business with an individual merchant account. However, this comes with extra fees and is generally more expensive.


Merchant acquirers have multiple payment structures, such as interchange-plus pricing, which consists of a fixed fee as well as a fee that consists of a certain percentage of the transaction and a markup, or tiered pricing, which means that the riskier the purchase is deemed, the higher the processing fee will be. Because these transaction fees are variable, high-risk merchants will get worse terms and higher fees.


PSPs, on the other hand, usually just charge a flat fee, but they are more likely to freeze funds or terminate accounts if th

ey deem a business to be high-risk. They also don’t offer the customer service that merchant acquirers do, which means it can be worth it to have separate service providers if a business is big enough.


What is the solution to this dilemma?                                                   

Since both options come with problems, especially for startups or medium-sized companies that are active in high-risk industries, like forex and cannabis, it can be hard to find the right service. PSPs are cheaper than merchant acquirers, but they still have high fees for businesses they deem to be risky, and they are likely to freeze funds. Merchant acquirers are less likely to freeze funds, but they are also more expensive and might not even do business with a high-risk company in the first place.


At Universal Crypto, we provide banking solutions tailored to our clients’ needs by applying what we learned in the cryptocurrency and forex world. For example, we have helped several clients in getting their own EMI license – meaning we helped them become their own institution and drastically reduce their fees. Clients have also reduced their PSP fees significantly with our partners in the industry.

Tired of paying your PSP hefty fees for processing your transactions? We have a solution. Tired of having to fight your providers over frozen funds? We have a solution.

Because we onboard with a Canadian bank based upon our clients’ cumulative deposits every month, we can offer the transaction fees that are usually only available to large companies. This means that the fees we offer are between 0.5 and 2.5 percent, depending on what services are required.

If you are looking for a solution to your specific banking problem, fill out our questionnaire, and hear back from us in 48 hours.