The traditional ways of receiving deposits for online forex brokers is slowing becoming a thing of the past, especially for brokers who are not based or licensed within the EU. Forex brokers licensed in jurisdictions such as Belize, Mauritius, and Seychelles are experiencing extremely difficult times when it comes to being able to receive deposits from their traders, and we wanted to find out if there is a new way for these companies to take deposits.
We contacted Andrew Anastasiou, an entrepreneur in the Fintech industry who is an expert on the subject of payments and banking. Andrew Anastasiou has been featured in some seriously high-level online publications due to his knowledge of the industry and for bringing payment solutions to some of the most hard up industries.
Andrew Anastasiou told us that for non-EU forex brokers, it is becoming more and more apparent that if they want to continue taking deposits in a traditional way, namely via Visa or Mastercard they will need to obtain access to an extremely risky environment known as “miscoding”. Andrew Anastasiou firmly put forward that he in no way endorses such services and that he does not support nor advise the practice of “miscoding” when it comes to online brokers trying to navigate the payments world. Instead, Andrew told us that a viable and legal solution for receiving online deposits from traders of a broker is eVouchers.
The term “eVoucher” is a wide term, but Andrew Anastasiou told us that the use case scenario for forex brokers is pretty simple. The way it works is that a forex broker will integrate with any of the current digital eVoucher solutions that are regulated and support forex brokers, then a system of purchasing an eVoucher is implemented whereby the trader can purchase an eVoucher with their credit or debit card, receive a 6-10 digit code to their email inbox and then redeem this code on the broker’s website. Andrew Anastasiou is also in the final stages of setting up his eVoucher solution which is specifically tailored for the forex industry and is expected to launch in Q1 2021.
The service also plays a large role in combatting chargebacks, which have historically been a hindrance to forex brokers and can even cause payment services to be terminated if chargebacks rise too high. With eVouchers, as the depositor is purchasing a voucher and then redeeming it, there is a two-step process and therefore the possibility of chargebacks is significantly reduced.