ICO merchant account
You have an outstanding idea for a new cryptocurrency. Now you seek to find seed funding. Going directly to the bank is not your option. That is why you start an ICO and want to open a merchant account to accept investments. However, the payment processors don’t seem to be too willing to onboard you. Why so? Because this business type might involve lots of scams. Nevertheless, you do not need to panic. You do have an opportunity to open an ICO merchant account.
What is an ICO?
ICO or initial coin offering stands for startup or company funding using cryptocurrencies. ICO commonly uses a crowdfunding model, but individual ICO companies become more widespread. But what exactly does happen during the initial coin offering? Some companies invest in the other ones that have come up with an idea of the new cryptocurrency. Remember, unlike the IPO, the investing companies do not receive an ownership stake. The interest will depend on the new cryptocurrency success.
Why ICO is considered a high-risk business
As there is no chance to influence the financial gain, ICO is commonly related to the high-risk business. Somehow, it can be compared to gambling, when you make a bet and hope to win. But there are other reasons to consider ICO as a high-risk industry.
- High level of scam. ICO has little to no regulation by the legal institutions. Which means there are a lot of fraudsters that are ready to raise money and then disappear.
- Anonymity. ICO is truly international. Any user with Internet access can fund the new cryptocurrency. The frequency and volume of transactions are too fast and high that it’s close to impossible to track them. That is why ICO is often used for money laundering.
What are the core needs of ICO merchants
We dare to believe you are following the “fair play” principals and not involved in the fraud schemes. As you have an awesome idea and do require an ICO merchant account, you might need the following solutions.
- Local e-banking. This option ensures a lower decline rate. Connecting to the local bank helps to keep processing fees low. Moreover, it’s a good solution for the merchant without payment cards.
- Online bank wires. This solution is beneficial as it eliminates the chargebacks possibility with almost 100% likelihood. With wire transfers, you can track the transactions in the “real-time” mode.
- Fraud & chargeback prevention. This solution is crucial for any kind of business but especially for the high-risk ones. As ICO may involve various kinds of fraudulent activities, ICO merchants require proven fraud & chargeback prevention tools.
Ikajo International has proven solutions for merchants whose industries are considered as high-risk ones. We will eagerly provide 15+ years of our experience to solve all your problems and help you grow your business. We have our own fraud & chargeback prevention software alongside with such solutions as local e-banking and online bank wires. Make sure to contact us to find out about other benefits for your ICO company. You are only a few steps away from opening an ICO merchant account and accepting investments!
- PCI DSS Level 1
- Chargebacks & fraud prevention
- API and HPP integration
- Free recurring billing
- 100+ payment methods
- 60+ proven banks relationships
- Mobile banking
- 24/7 customer support