Payment solutions for agribusiness: banks and payment systems

In an era of rapidly expanding prospects, the undeniable importance in ensuring the activity and scaling of business, both at the domestic and international levels, is occupied by correctly selected financial instruments – payment solutions. Every day there is a growing need for innovative and reliable tools that can simplify financial transactions and ensure the security of transactions. In the agricultural business industry, where every step is filled with challenges and opportunities, effective payment solutions become an integral part of successful business operations. They not only provide convenience and security in financial transactions, but also help optimize management processes.

In this article, we will look at a variety of payment solutions specifically tailored to the needs of agricultural business and analyze their advantages.

Passing compliance for the agrosphere

In today’s business, it is extremely important to choose the right banking or financial institution that perfectly suits the needs of the business. Particular attention should be paid to the challenges facing companies engaged in agricultural activities, since not every Bank or payment system is willing to take the risk and open an account for such a business due to the potential risks and high degree of regulatory requirements associated with this area. Understanding that such activities will be accompanied by enhanced compliance on the part of Banks is a key. However, it is important to remember that in such situations nothing is impossible – the main thing is to deeply study the peculiarities of the functioning of banking and financial institutions, as well as the terms of service, in order to choose the optimal payment solution that will meet the requirements and goals of the business.

Since the compliance procedure will play a crucial role in relationships with banking or financial institutions, we want to focus on this point. This is not just a formal step, but a key stage that determines the successful further interaction between business and Banks.

The bank will require a list of identification documents for directors, founders and account managers for the company. We recommend paying special attention to the correct display of your income.

The Bank will also ask you to provide not only the constituent documents, but also to disclose in detail the company’s activities, including providing contracts and invoices for the counterparties with which the company does business.

It is important to display the structure of activities as simply and transparently as possible in order to dispel any doubts of the Bank and the compliance procedure will be quick and simple.

What is important to know when looking for a financial solution?

When passing compliance, as previously mentioned, the Bank will ask you to provide the proof of business, namely contracts and invoices with partners. Here it is important to take into account the features of the Bank or payment system where you want to open an account. Since Banks have a list of prohibited countries with which they do not do business. And often the list of such countries goes beyond the boundaries of the sanctions list.

It is important to keep this aspect in mind given that the Bank may spend a significant amount of time assessing documents, especially when it comes to the agricultural business sector. The discovery of companies from countries with restrictions in the list of partners may immediately lead to a refusal to open an account, and there is no guarantee that the same company will be able to re-apply to the same Bank. This can result in wasted time and effort without achieving the desired result.

Each Bank and payment system has such a list of prohibited countries, and it differs in each institution.

To minimize the time and effort, we strongly recommend that you contact our team of lawyers. Our specialists constantly update information on the requirements and conditions established by Banks and payment systems. We can select for you the optimal payment solution that fully corresponds to the features and specifics of your agricultural business.

Payment solutions for agricultural companies

To open an account for a company whose activities are involved in the agricultural business sector, we recommend considering the following payment solutions:

Payoneer is a prestigious American licensed electronic money system, founded in 2005, which has deservedly won the trust of more than 5 million customers over the period of its successful activity.

This system specializes in long-term cooperation with agricultural companies, providing impeccable service to the agricultural sector.

Service Features:

• Payoneer offers customized account details in various currencies including USD, CAD, EUR, GBP, MXN, AUD, JPY and also provides efficient payment solutions for bulk payouts, which is a useful feature for the agro sector.
• For clients with large turnovers, individual tariffs are applied, providing favorable terms of cooperation. In addition, clients are provided with direct account details in American and European banks, which provides convenience and accessibility in interaction with global financial markets.
• Payoneer is active in 190 countries and supports over 70 currencies, providing its customers with global coverage and the best possible user experience. In addition, the system offers its users minimal commissions on transfers, which makes interaction with Payoneer even more attractive and profitable.

PayDo is an English payment system that offers virtual banking services to companies of all risk levels. The company is headquartered in the UK and is regulated by EMR 2011 and PSR 2017 standards.

Service Features:

• Paydo offers IBAN numbers with 18 currencies and 9 payment schemes for international and local transfers: SWIFT, SEPA, SEPA Instant, Target2, FasterPayments, CHAPS, Bacs, Fedwire, Kronos2.
• PayDo works with more than 25 industries, including high-risk industries.
• PayDo uses various security measures including 3DS, fraud protection and 2FA.
• PayDo provides a mass payment solution for merchants.

Bank account for agricultural business

Opening an account for companies actively involved in agricultural business is a strategic step that requires careful selection of a banking partner. In this context, banks in Switzerland and Montenegro present attractive options focused on long-term cooperation with agricultural enterprises. They offer loyal and tailored terms of service for similar companies. Among the advantages provided, we can highlight the ability to make payments through the SWIFT and SEPA systems, the absence of limits on outgoing payments, as well as a high level of security for storing assets.

However, it is important to take into account the specifics of each bank, since many of them have their own requirements. For example, some banks may require confirmation of the company’s actual presence in the country of registration or the provision of financial statements. In addition, some Banks set minimum limits on incoming payments or refuse to open an account for companies registered in tax-exempt jurisdictions.

Considering the complexity of the process, it is important to take an individual approach to choosing a banking partner abroad in order to minimize time costs and ensure a quick and successful onboarding process, taking into account the specifics of each bank.

Thus, in the field of agricultural business, opening an account with banking or financial institutions is an important step that requires a careful and thorough approach. The difficulties that companies face when opening an account abroad highlight the need to consider many factors and conditions before applying. Various requirements and standards, as well as the specifics of agricultural business activities, make this process complex and multi-stage and requires competent selection of a banking partner.