Merchants in the United Arab Emirates especially those applying to payment processors for e-commerce payment processing they often complain about lengthy onboarding times, even though their businesses are entirely legitimate. So, what is the reason behind this? While there can be numerous reasons for delays in merchant account applications, the issue isn’t always just the risk factor; sometimes, the sequencing of documents poses a risk as well.
You might submit all the requested documents such as your trade license, Memorandum of Association (MOA), and Emirates ID and yet the underwriting process stalls. Why? Because they also require a UBO (Ultimate Beneficial Owner) declaration, address verification, and confirmation of the settlement bank account.
Any mismatch among these documents halts the application process. To grasp this fully, you need to understand the underlying reasons. Payment processors adhere to strict identity-matching standards; this applies equally to UAE-based merchants who sell products or services internationally and wish to accept credit card payments.
Whether it is a Mainland LLC, a Free Zone entity, or an offshore holding structure, each business model requires a specific set of documents. You must provide the documentation relevant to your specific business structure to the payment processor. Any discrepancy regarding the entity type or the settlement bank account acts as a red flag for the payment processor and yes it is not merely an administrative error.
Let us now look at the concrete steps you can take to resolve this issue. First, ensure that your business entity name is identical across all documents, including your trade license, bank account details, domain registration, and WHOIS business registration proof.
If your settlement bank account is not easily compatible with the acquiring bank, you should plan for additional verification steps. Also, ensure you have all the necessary documentation ready before submitting your application to the payment processor.
You can contact a payment solution reseller, such as QuadraPay; our team will guide you on the specific documents required for the application.
Simply submitting basic documents does not guarantee approval; it is crucial to gather all required documents and submit them together to your payment gateway provider to successfully open a merchant account and payment gateway in the UAE.
Another important point to consider is that if you are a UAE resident selling services in the United States, you have the option to establish a company there such as an LLC (Limited Liability Company) and then open a local bank account based on that entity. However, before opening the bank account, you must obtain an EIN (Employer Identification Number) from the IRS. Once you have the company, the EIN, and the bank account, you can approach US-based payment service providers to review your profile and application for approval. This allows you to get a US domestic payment processing solution. If your application is with a UAE or US payment gateway and is stalled, and you are a UAE national requiring assistance, please feel free to contact our team.
Our team can help you create a US LLC from UAE in few days and can potentially guide you to get a US merchant account.