Merchant Accounts allow credit card transactions over the
internet. It is the perfect solution if you operate online
business and e-commerce. In this way you can obtain
privacy, and avoid all of the burdensome rules and regulations
surrounding online e-commerce in your domestic country.
To obtain Online Merchant Accounts you have to purchase Panama
Corporation with a Panama Bank Account.
Create a Panama Corporation through us whereby:
Establishing a Tax free Internet e-commerce business involves
four simple steps:
1. Incorporate a tax free Panama corporation.
2. Establish Panama bank account to deposit the proceeds of your
online credit card transactions.
3. Build your corporation's Website offering products or
4. Establish an online internet merchant account with
correspondent banks and merchant processors through an
international bank willing to accept your application.
BASIC INFORMATION REGARDING MERCHANT ACCOUNTS
Internet Merchant Account Processors: Merchant account processing services are provided by a bank,
merchant processor or a third party processor to the merchant.
Services include authorization of credit cards, settlement of
funds through the bankcard associations (MasterCard & Visa,
etc.), depositing of funds into checking accounts, merchant
billing, and account activity reporting.
Please note that most merchant providers do not accept certain
types of high risk businesses, such as pornography, gun sales,
or sales of addictive substances.
& Currencies: Merchant Processors can process
MasterCard, Visa, American Express, Discover Card, and many
The Merchant Processors can settle funds due to merchant
bank accounts in EUR or US Dollars to any bank worldwide.
The merchant processing service functions under the SSL (Secure
Socket Layer) system which codifies the information and this
security system is one of the most advanced in the market today.
It consists of one secure connection between the merchant and
the processor, which guarantees that the information is never
lost or reproduced to other parties.
For additional security the Merchant Processor requires that you
obtain a digital commercial security certificate for your
Requirements for Set Up of Merchant Account:
a. Corporate Bank Account:
This is where the proceeds from the merchant account
transactions will be deposited.
b. Financial References:
At least 1 financial reference letter (original, dated within 3
months) is required to open the account.
c. Professional References:
At least 1 professional reference letter (original, dated within
3 months) is required to open the account.
d. Letter Describing Your Business:
A letter should be provided with the following information:
1. Summary of your business activities.
2. Description of products and/or services sold online.
3. Jurisdictions your company currently doing business in.
4. Year your company was incorporated.
5. Previous or expected business volume (annual revenues, sales,
6. Estimated charge-back percentage.
7. Website URL that will be used for selling your product or
8. Jurisdiction where site is hosted.
9. Photocopy of passport for all company directors, officers,
and legal representatives or signatories of
Merchant Account FAQs:
Q: What is merchant account processing?
A: Merchant account processing services are provided by a bank
or a third party processor to the merchant. These services
include authorization of credit cards, settlement of funds
through the bankcard associations (MasterCard, Visa, etc.),
depositing of funds to checking accounts, merchant billing, and
account activity reporting.
Q: How do I get a merchant account?
A: The first step is to establish an Panama corporation. Next,
you will need to establish a bank account for your corporation.
Finally, the merchant account is established through one of our
correspondent merchant processors. The application process is
relatively simple, and just requires that you complete with the
Q: What credit card types can I accept?
A: Through our recommended merchant processors, you will
automatically be set up to accept Visa and MasterCard, while
other cards require additional authorization.
Q: How long does the application approval process take?
A: You can start accepting credit cards immediately after the
application is accepted and your merchant account is activated.
The application process takes from 2 to 4 weeks, depending on
whether all of the necessary documentation is complete.
Q: Can I start accepting credit cards immediately?
A: Yes, once your account is approved and activated, you may
commence processing of credit card transactions immediately.
Q: How will I get paid for credit card transactions?
A: Funds are automatically transferred to your business checking
account via an electronic wire transfer after a transaction has
been captured and settled for payment. The time frames for
payments range with each merchant processor, some pay within 72
hours, others within 2 weeks. Please note that certain hold-backs (generally a small percentage of the
transactions, around 5 to 10%) may apply, depending on the risk
level of your business. The hold-backs are released after
a certain time period, generally within 30 to 180 days
(depending on the risk evaluation performed by the merchant
Q: Is there paperwork to sign? A: Yes, applications will need to be couriered or emailed to
your address, you would need to return the signed applications
along with the required documentation to commence final
approval. Once final approval occurs (normally around 2 weeks
after the merchant processor receives the original paperwork)
you will then be able to begin processing.
Q: Will I need to purchase additional equipment?
A: No. All you need is a web browser and Internet access to
utilize the Virtual Point Of Sale (POS) terminal. Use this to
authorize/settle transactions, view orders, manage recurring
billing and more!
Q: Will I receive statements?
A: Yes. Merchant processors offer you Internet-based reporting,
that gives you online access to review your daily sales,
financial history, and other pertinent account information. In
addition you will receive a paper statement at the end of each
Q: What type of bank account do I need?
A: A business checking or savings account is required. Your bank
will be credited and debited via wire transfer.
Q: If I am a new start up company without a credit history,
will my company get approved?
A: There are no strict credit requirements. Any business can be
approved. The merchant provider that is used depends on the
business model of the particular business.
Q: I need a merchant account for processing online gambling
transactions for my online casino. Can I be approved?
A: Yes. We may be able to find a correspondent merchant
processor that allows online gambling.
Q: I already have a retail merchant account. Why do I need
A: Financial institutions and the Visa / MasterCard card
Associations have different criteria for evaluating the
potential risk involved in credit card transactions where the
card is not physically presented to the merchant. This type of
business is typically referred to as card not present or MO/TO (mail order/telephone order). For this reason, a
separate merchant account is needed.
Q: What is a payment gateway?
A: A payment gateway is a service that gives merchants the
ability to perform real-time credit card authorizations from a
web site over the Internet. The Gateway is an encrypted channel
that passes the transaction securely from your customer's
computer to the financial institutions to capture the
authorization and approval. Once the transaction is complete,
the information is sent back through the Gateway to complete the
order and provide you with verification. The Gateway offers many
administrative features such as: viewing orders, keeping sales
tax records, account maintenance, etc.
Q: How do I get my gateway set up?
A: Merchant processors provide you with a complete turnkey
solution. When you apply and are approved for an account, the
gateway is automatically set-up.
For further information about Merchant Accounts and our Fees,
please contact us.