Germany Merchant Account Solutions

The German e-commerce market is one of the largest and fastest-growing in the world. Total sales are expected to exceed $ 70bn in 2020, which is more than 10% of total sales.

In this article, we will try to understand how a merchant can open his own ecommerce business in Germany and what payment solution is needed.

The most commonly used digital payment methods in Germany are:

1. PayPal – 52%;
2. Invoice payments – 26%;
3. Credit and debit cards – 12%;
4. Direct transfers – 6%;
5. Cash on delivery – 1%.

How to Get a Germany Merchant Account?

The German market is in constant development and obtaining a merchant account will allow merchants not only to accept payments on the site but also to get the opportunity to enter a new competitive market.

To open a business in Germany, you first need to apply for a merchant account.

After that, in order to receive the German payment gateway and open a merchant account, the bank will ask you to provide certain documents.

The most basic requirements include:

• Provide a document proving the identity of the owner of the company;
• Provide information about the corporate bank account;
• Social Security number or tax identification number;
• Submit tax return and financial statements;
• Have a ready-made website;
• Provide a working payment page and proof of the security of the customers’ payment data received.

After collecting and submitting all the necessary documents, your application will be considered and you will receive a German merchant account. Then, you will be able to accept payments from the customers online.

How to get a payment solution without a merchant account?

Sometimes online companies choose to use third-party payment processors. One of the main advantages of these organizations is that the business owner does not need to open a merchant account. The third-party processor provides a completely out-of-the-box payment platform and processes payments through its own merchant account, on behalf of the merchant.

Such companies charge a commission on each payment. The fee depends on the type of business, the size of the transactions, and the country of processing.

Most internet payment operators offer special solutions for corporate clients. The onboarding applications are considered on an individual basis. The site on which the payment gateway is connected must comply with the requirements of the Visa and Mastercard payment systems demands.

The onboarding procedure

• The client applies for the service providing the connection to the gateway.
• Service managers review the application and determine if the site meets the requirements.
• If the site meets the requirements of the service, a tripartite agreement is concluded: between the client, the service, and the aggregator bank.
• Software is installed on the client’s website that allows online payments.

If a website is created with popular shopping platforms, merchants can be integrated within hours.

If you have any questions related to implementing a payment solution for the website, please contact our support team. We are always happy to clarify any details and offer the best solution for your business.