Open a Merchant Account in Croatia

Investors who start a company in Croatia have the possibility to open a merchant account and manage their online businesses. Through a merchant account in Croatia, payments are accepted in multiple ways, usually using debit or credit cards. In order to open a merchant account in Croatia, you need to address an acquirer which is typically a bank or other financial institutions. Our lawyers in Croatia can assist you in setting up a merchant account with one of the local banks which provides this service.

Situations that require a merchant account in Croatia

Irrespective of the type of company you set up in Croatia, if you want to receive online payments, you are required to open a merchant account. This is a special type of bank account, where the funds stay between the time they are sent by a client and the moment they reach your bank account. There are several business situations that require a merchant account in Croatia:

•    Starting an e-commerce business;
•    Expanding your Croatian company in the online world;
•    Accepting credit cards directly without using a payment gateway;
•    Having high sales volume and needing a more flexible payment and processing schedule;
•    When you need to set different time intervals for which payments are made into your actual bank account or business account – this applies to companies and individuals who need a steady cash flow, but have a volatile inflow of funds.

With professional expertise in company formation, our law firm in Croatia can help you open a merchant account.

How to open a merchant account in Croatia

If you want to apply for a merchant account, your business will have to undergo an extensive credit card check and underwriting process. Opening a merchant account in Croatia usually takes time and implies gathering bank records and other relevant information. Given these circumstances, it is highly advisable to turn to the professional services of a Croatian law firm. Here is a list of the things to do in order to open a merchant account in Croatia:

•    Gather your company's financial statements;
•    Consider your processing history: number of transactions, number of refunds, total chargeback volume, total transaction volume;
•    Write a cover letter explaining why you need a merchant account – take into consideration the product risks specific to your industry, the trading volumes of your business and deal with your bad credit history, if applicable;
•     Pay the merchant account application fee with the bank you want to open this account with.

If you need further information about the process of establishing a merchant account in this country, don't hesitate to contact our attorneys in Croatia.