High-risk merchant account for affiliate networks with a Hong Kong company

We begin by reviewing your company's advertiser verticals, traffic sources, and payout model. Based on this, we build a detailed underwriting file that includes your advertiser vetting policy, payee KYC process, and website compliance. The file presents your Hong Kong affiliate business in a clear and transparent way to financial institutions.

Our next step is to identify and approach appropriate providers. We select from our network of EEA-licensed acquirers and international payment institutions that have an appetite for affiliate marketing (MCC 7311) and experience with Hong Kong entities. We manage the application and underwriting Q&A, ensuring a smooth process.

Compliance teams focus on the source of your traffic and the legitimacy of your advertisers. They will scrutinise your advertiser vetting policy and your process for conducting know-your-customer (KYC) checks on payees. You will be asked to provide a list of your top advertisers and demonstrate how you monitor their offers.

Underwriters will also expect to see at least six months of recent processing statements to verify your transaction volumes and chargeback ratios. While inbound chargebacks are typically low for this model, the risk is concentrated in the payouts, so expect a thorough review of your payee screening and payout controls.

Using a Hong Kong private limited company is common. Acquirers will require your Certificate of Incorporation, Business Registration Certificate, and Significant Controllers Register. Banks and payment providers often expect an in-person or video meeting with the directors and UBOs as part of their enhanced due diligence.

You must have a local Hong Kong address and a licensed company secretary. While traditional Hong Kong banks are very selective, acquirers are accustomed to seeing these entities banked by virtual banks or licensed stored-value providers. We ensure your corporate structure is clearly presented to the provider.

Accounts are often declined due to the acquirer's lack of appetite for the advertiser verticals you serve, such as dating or nutraceuticals. Opaque traffic sources or weak advertiser vetting are also common reasons for rejection. Closure often results from high numbers of suspicious transactions or payouts to unverified payees, triggering AML concerns.

We prevent this by creating a file that clearly outlines your advertiser acceptance policy and demonstrates robust payee KYC procedures. By matching you only to acquirers who explicitly approve your business model, we minimise the risk of future termination.

From the submission of a complete file, you can typically expect a decision within two to six weeks. Once approved, we assist with the technical integration and help you configure your settlement accounts and payout schedules. Reserves are rare for affiliate network merchant accounts, as the focus is more on payee screening and transaction monitoring.

To keep your account in good standing, it is crucial to maintain your advertiser vetting standards and diligently screen all payees. We advise you on best practices for ongoing monitoring to ensure your operations remain compliant with your acquirer's terms of service.