Mastercard Puts Unregulated Forex, CFDs and Binary Brokers under “high-risk security” category
One more opportunity for unregulated forex and CFDs brokers has been dismissed. Mastercard company has sent an email informing payment processors about the changes that will be applied to some of the trading companies.
Mastercard has mentioned forex cryptocurrency options, ICOs, CFDs and binary options under the mark “high risk”. It means that any business that operates on financial market without a license or not being authorised will categorized with the highest risk and payment processors will pay a special attention to this category.
All of the mentioned brokers will be placed under the category of high-risk securities merchants and their transactions will categorized into a particular group under particular code. This code will mean that the chargebacks will still be possible within 540 days after the transaction.
These new changes are expected to put into action from the 12th of October, which means that the payment processors will have around half a year to revise this new set of rules and guidelines. Each payment processor who is processing the transaction from the high-risk security merchant will have to show the proofs from the legal authority. Such proof can be a license that was issued by the regulator agency or official authority and also the proof that the trading platform is also licensed. Payment processors will have to terminate the high-risk security transactions till the the needed documents are presented.
These new standards will affect all transactions globally, processed via Mastercard and its services Maestro and Debit Mastercard.