Opening a Merchant Account with a Cyprus company.

Opening a Merchant Account with a Cyprus company.

A Cyprus company is a European Company. As such a Cyprus company is acceptable by European banks for the opening of merchant accounts provided that certain preconditions are met on behalf of the applicant.

What is a merchant account?

A merchant account is a special kind of bank account that exists for the purpose of holding funds captured from credit and debit card sales. If you’ve ever used your card and actually wondered where the funds just disappeared to, they went into a merchant account. From there they are transferred out to a normal business bank account, normally on a daily or weekly basis.

Why do you need it?

If you want to accept credit card payments online, you need either a merchant account provider that issues merchant accounts to businesses. Or, you can use the services of an aggregator (Example: PayPal) a company that processes transactions through their own merchant account on behalf of other companies.

Can you open a merchant account in Cyprus?

Our law firm can assist you open a Merchant Account in Cyprus.

To do that it is important to have a company incorporated in one of the European Union’s member states.

As noted above a Cyprus company is suitable for this purpose as Cyprus is a European Union member state.

So the answer is positive. However prior to obtaining approval the company that provides the Merchant Account needs to be satisfied that the application is genuine, that there is nothing illegal in the activities of the company and certain financial criteria are met.

Prior to applying for a Merchant Account, the company must open a normal bank account.

What information will be required?

Please contact us for more information about opening a Cyprus company with a Merchant Account at office@lawyer.com.cy