It is known that foreign banks have made the opening an account much more difficult when it comes to non-resident clients. This policy is caused by the fight against fraud and money laundering. The process of opening an account in a foreign bank may take up to four months, and the complexity of the procedure does not guarantee a positive result. Therefore, as an alternative for the management of personal or corporate finances majority chooses payment systems.
Payment Service Providers (PSP) are licensed financial companies that provide the necessary set of banking services. The requirements to clients imposed by PSPs are more loyal in comparison with banks. However, their safety does not cause any doubts, because payment systems’ activity is regulated and controlled by financial operations supervision authorities.
The PSP user can transfer money from his bank account to an electronic wallet for subsequent payments.
Advantages of foreign PSPs for non-resident clients
Registration in the payment system and opening of a personal or corporate account besides access to the standard set of bank operations provides the client with a lot of additional advantages. The main ones are:
– Opening multicurrency accounts;
– Loyal identification procedure;
– Fast currency transactions;
– Low commissions and low transaction costs;
– International Bank Account Number (IBAN);
– Access to SWIFT, FPS, SEPA, CHAPs;
– Various convenient ways to integrate the API with other services;
– Mobile banking with a wide range of features;
– Access to a large number of currencies;
– Favourable exchange rates;
– Acquiring.
To register and opening an account in the payment system, first of all, you need to determine the main currency payments will be made in, the desired functionality, geography of use, and other criteria.
Reasons of blocking foreign bank accounts
The blocking of a bank account always happens unexpectedly and untimely. Unfortunately, such a situation can not only ruin your mood, but also affect your business reputation. The understanding of the normal operation of the account by the bank and by the client may differ markedly. The bank has its own criteria for assessing transactions, which sometimes leads to blocking.
For example, if a non-resident company’s corporate account receives a certain amount of money, and on the same day they are transferred to another account (or several accounts), the bank will consider these transactions to be transitory. And such transactions are unequivocally interpreted as unacceptable.
Attention and control by banks is due to the fact that they are strictly audited. If the audit detects the existence of transit accounts and making payments without a clear purpose, the bank will be subject to serious sanctions. It can be both high fines and deprivation of the license.
PSPs are subject to the same checks. That is why it is not enough to register and open an account in a payment system. It is necessary to make sure that all transactions comply with the declared type of activity. You should also not ignore requests from PSP managers for documents and explanations of transactions that they consider questionable.
Diversification
The reasons of blocking an account may be very different. The above-mentioned transit transactions, some changes in the bank’s policy, reorientation of the client portfolio, “black” and sanctions lists, and many other reasons can lead to a blockage. That’s why experts recommend opening several accounts in different places.
Thoughtful diversification of risks will allow you to switch cash flows to other accounts, in case the main account is blocked.
How to choose a PSP?
Opening an account in a payment system is an ideal solution for those who operate internationally or plan to expand the geography of their business. Besides, registration in a payment system will be very useful for online stores. It will greatly facilitate and simplify the procedure of payment for goods and services and other payments.
Account opening procedures in different PSP systems may differ significantly; the same can be said about the systems functionality, and other conditions. Request a consultation with UNONAPAY specialists to get comprehensive information on the matter.