Opening an Online Payment Processor in Luxembourg

A presentation brought to you by Lawyers-Luxembourg.com

1

The Financial Industry in Luxembourg

The financial industry is the most prolific sector of Luxembourg’s economy, which is why many foreign investors open payment processors which yield good revenues.

Our lawyers in Luxembourg can offer more information on the financial industry in the Grand Duchy.

2

What is a Luxembourg Online Payment Processor?

An online payment processor is an authorized company that can process credit card transactions between sellers and buyers.

These companies let merchants to receive payments (credit card or debit) online by ensuring a bank connection. 

3

How to Open a Payment Processor in Luxembourg

The first step entrepreneurs make when opening an online payment processor is to register a company in Luxembourg. 

Then, one must apply for the necessary permits and authorizations which will allow the processor to function.

4

Types of Payment Processors in Luxembourg

There are at least two main types of online payment processors:

front-end online processors make sure that banks' merchants are being supplied with settlement and authorization services and also these kind of processors have card associations connections;

back-end online processors take settlements from the front-end ones and move the capital from the issuing bank to the merchant one (through The Federal Reserve Bank etc).

5

How an Online Payment Processor Works

The online payment processor checks the details received in an operation that takes a short time to complete and forwards them to the card's issuing bank for verification.

After it receives the confirmation that the details have been verified, the input will be passed back by means of the payment gateway to the merchant so as to finish the payment transaction.

6

Functions of Luxembourg Payment Processors

The processors are able to perform various functions, like:

evaluate the validity and existing approval of transactions;

use anti-fraud measures in order to make sure that the transaction has its starting point it claims it does.

7

Other Aspects of Payment Processors in Luxembourg

Processors do not usually market their services, preferring to stay in the background, often processing payments for partnering member service providers and independent sales organizations. 

Our attorneys in Luxembourg can guide you through the process of opening an online payment processor and explain all the details to you. 

8

Assistance in Opening a Luxembourg Payment Processor

Our Luxembourg lawyers can help you create an online payment processor in the Grand Duchy.

You can also contact our law firm in Luxembourg for information about other types of businesses in Luxembourg.  

9

Thank you for your attention!

For more information, please contact us at:

(+44) 203-287 0408 (for international clients)

www.lawyers-luxembourg.com

office@lawyers-luxembourg.com

10