Merchant & Corporate Banking Setup

Establishing payment processing capabilities enables Georgian businesses to accept card payments from customers both locally and internationally. Understanding merchant account options, payment processing infrastructure, fee structures, and available technologies ensures businesses can efficiently collect payments while managing costs and customer experience effectively.

Merchant Account Establishment

Merchant accounts from Georgian banks enable businesses to accept credit and debit card payments. Applications require completed company registration with active business operations. Banks evaluate business types, expected transaction volumes, and risk profiles when considering merchant applications. Established businesses with operating histories face easier approval than brand-new startups without track records. Most banks offer merchant services though specific terms and requirements vary by institution.

Application documentation typically includes company registration certificates, tax registration confirmation, business descriptions detailing products or services sold, website URLs for online businesses, expected monthly transaction volumes, and average transaction sizes. Banks want to understand business models and revenue patterns. Retail businesses need physical location information while e-commerce operations must demonstrate legitimate online presence. Complete applications with thorough documentation process faster than incomplete submissions.

Processing timelines for merchant account applications typically range from one to two weeks for straightforward businesses. Complex business models, high-risk industries, or international operations may require additional due diligence extending approval times to three or four weeks. Banks conduct background checks on businesses and principals, evaluate business viability, and assess risk levels before approval. Providing comprehensive information upfront and responding promptly to bank inquiries accelerates processes.

Risk assessments by banks determine merchant account approval and pricing. Low-risk businesses like established retail stores or professional services generally receive favorable terms. Higher-risk operations such as travel agencies, digital products, or subscription services face more scrutiny and potentially higher fees or restrictions. Understanding how banks perceive your business type helps set realistic expectations and enables addressing concerns proactively during applications.

Multiple bank relationships provide backup payment processing options. Establishing merchant accounts with two banks protects against service disruptions from technical issues, policy changes, or account problems with single providers. While managing multiple relationships adds complexity, the redundancy proves valuable for businesses depending heavily on card payments. Some businesses use different banks for physical and online payment processing optimizing each channel.

Physical Payment Solutions - POS Systems

Point-of-sale terminals enable businesses with physical locations to accept card payments from customers in person. Modern POS terminals support chip-and-PIN, contactless, and magnetic stripe cards. Georgian banks provide terminal rental services eliminating large upfront equipment purchases. Terminal rental fees typically range from ten to thirty GEL monthly depending on terminal model and features. Basic countertop terminals cost less while wireless and mobile terminals command premium rentals.

Terminal placement strategies affect customer experience and payment efficiency. Retail stores typically position terminals at checkout counters for cashier operation. Restaurants benefit from wireless terminals enabling tableside payment acceptance. Mobile businesses like delivery services use portable terminals accepting payments at customer locations. Understanding business operational flow determines optimal terminal configurations. Many businesses utilize multiple terminal types accommodating different payment scenarios.

Contactless payment adoption in Georgia is widespread with most terminals supporting tap-to-pay functionality. Contactless acceptance provides faster transaction processing and improved customer convenience particularly for small purchases. Most Georgian consumers use contactless cards or mobile wallets making this capability essential for modern businesses. Contactless limits typically allow transactions up to fifty GEL without PIN entry, with higher amounts requiring PIN authentication.

Terminal maintenance and support services from banks ensure continued operation. Banks provide technical support, replace malfunctioning units, and update terminal software as needed. Merchant agreements typically include maintenance services within rental fees. Prompt reporting of terminal issues enables quick resolution minimizing payment acceptance disruptions. Backup payment methods like mobile payments or manual card imprinters provide redundancy during terminal outages.

Receipt printing and digital receipts provide transaction documentation. Traditional paper receipts suit retail environments where customers expect physical records. Digital receipt options via email or SMS reduce paper consumption and costs while appealing to environmentally conscious consumers. Many modern terminals support both options allowing customer choice. Proper receipt documentation aids accounting, returns processing, and customer service.

Online Payment Gateways and E-commerce

Payment gateways enable online businesses to accept card payments through websites or mobile applications. Georgian banks provide gateway solutions integrating with e-commerce platforms. Technical integration requires web development capabilities or third-party platform support. Most major e-commerce platforms like Shopify, WooCommerce, and Magento support Georgian payment gateway integration enabling relatively straightforward setup for businesses using these systems.

Gateway integration methods vary by bank and technical approach. Hosted payment pages redirect customers to bank-operated secure payment environments, simplifying integration and reducing merchant security obligations. Integrated APIs enable seamless payment experiences within merchant websites but require more technical expertise and greater security compliance. Businesses should evaluate technical capabilities and security comfort levels when selecting integration approaches.

Security requirements for online payment processing mandate compliance with payment card industry standards. Merchants must implement SSL certificates encrypting data transmission, maintain secure servers and databases, avoid storing sensitive card data unnecessarily, and follow security best practices. Banks provide guidance on security requirements and may conduct security assessments before gateway activation. Professional web developers familiar with payment security ensure proper implementation.

International card acceptance enables Georgian online businesses to serve global customers. Payment gateways typically support Visa, Mastercard, and major international card networks. Currency handling options allow accepting payments in foreign currencies with automatic conversion or maintaining multi-currency pricing. International card transactions typically incur higher fees than domestic cards due to network costs and foreign exchange risks.

Fraud prevention measures protect merchants from payment fraud and chargebacks. Gateway features like address verification, CVV checking, velocity limits, and fraud scoring systems help identify suspicious transactions. Implementing multiple security layers balances fraud prevention with customer convenience. Some businesses manually review large or unusual orders before fulfillment. Understanding fraud patterns in your industry enables targeted prevention measures.

Mobile commerce capabilities increasingly important as consumers shop via smartphones. Responsive website design ensuring mobile-friendly checkout experiences reduces cart abandonment. Mobile-optimized payment flows with minimal form fields and easy card entry improve conversion rates. Some gateways offer mobile SDK integration for native mobile applications providing seamless in-app payment experiences. Mobile wallet support including Apple Pay and Google Pay appeals to tech-savvy consumers.

Fee Structures and Cost Management

Setup fees for merchant accounts vary by bank and business type ranging from zero to two hundred dollars. Some banks waive setup fees for qualifying businesses while others charge flat fees covering account establishment and terminal deployment. Online gateway setup may involve additional technical integration costs particularly for custom implementations. Negotiating fee waivers or reductions particularly for businesses with significant expected volumes often succeeds.

Transaction percentage fees form the primary ongoing cost of payment acceptance typically ranging from 1.5 to three percent of transaction value. Georgian-issued debit cards usually incur lowest fees around 1.5 to two percent reflecting lower network costs. Georgian credit cards cost slightly more at two to 2.5 percent. International cards carry highest fees at 2.5 to three percent due to international network charges and currency conversion. Fee structures should be clearly understood before committing to merchant relationships.

Monthly service fees cover account maintenance, statement generation, and customer support typically ranging from ten to fifty GEL. Higher-tier service plans with enhanced features or priority support command premium monthly fees. Some banks tie monthly fees to transaction volumes, waiving fees when businesses exceed minimum monthly processing thresholds. Evaluating monthly fee structures relative to expected transaction volumes determines cost-effectiveness.

Per-transaction fixed fees may apply in addition to percentage fees particularly for small transactions. Fixed fees typically range from 0.10 to 0.50 GEL per transaction. These fixed components disproportionately impact small-ticket businesses like cafes where average transactions are low. Understanding fee structures' impact on your typical transaction sizes guides merchant account selection. Businesses with many small transactions should negotiate favorable fixed fee terms or structures emphasizing percentage fees.

Volume-based pricing provides reduced fees for businesses processing substantial monthly amounts. Tiered pricing structures might offer 1.8 percent for processing under 10,000 GEL monthly, 1.6 percent for 10,000-50,000 GEL, and 1.4 percent above 50,000 GEL. High-volume businesses processing over 100,000 GEL monthly can negotiate custom rates below standard pricing. Providing banks with realistic volume projections enables appropriate pricing tier placement.

Chargeback fees charged when customers dispute transactions typically range from five to twenty GEL per incident regardless of dispute outcome. These fees cover banks' administrative costs investigating disputes. Excessive chargeback rates may trigger account reviews or additional restrictions. Maintaining clear refund policies, excellent customer service, and accurate product descriptions minimizes chargeback risks. Winning chargeback disputes through proper documentation prevents financial losses beyond fees.

Settlement timing affects cash flow with most Georgian banks settling card transactions within one to three business days. Faster settlement options exist for premium fees providing next-business-day fund availability. Understanding settlement schedules enables cash flow planning and working capital management. Some industries with higher fraud risk face longer settlement periods while banks assess transaction legitimacy. Delayed settlements tie up working capital requiring consideration in financial planning.

Payment Service Providers and Alternatives

TBC Bank offers comprehensive merchant services including POS terminals, online gateways, and mobile payment solutions. Their TBC Pay mobile payment system enables QR code payments popular among younger Georgian consumers. TBC's technology infrastructure is sophisticated supporting high-volume businesses. Their pricing is competitive though not always the lowest. Strong customer support and reliable systems make TBC popular for businesses prioritizing service quality.

Bank of Georgia provides similar comprehensive merchant offerings with extensive physical branch network supporting in-person service needs. Their BOG Pay mobile payment platform competes with TBC Pay in the Georgian market. Bank of Georgia suits businesses valuing traditional banking relationships and physical branch access. Pricing is comparable to TBC with negotiation possible for significant volumes. Their long market presence provides stability and reliability.

Credo Bank, known for crypto-friendly policies, also offers standard merchant services at competitive rates. Their lower fees on some services appeal to cost-conscious businesses. While smaller than TBC or Bank of Georgia, Credo provides quality merchant services with good customer support. Businesses already banking with Credo benefit from consolidated banking relationships. Their willingness to work with newer businesses provides opportunities when larger banks decline.

International payment processors like PayPal operate in Georgia with limitations. PayPal supports receiving payments from international customers but Georgian bank withdrawals face restrictions. Businesses serving international markets may use PayPal alongside Georgian merchant accounts, accepting international PayPal payments while using local accounts for Georgian customers. Understanding PayPal's Georgian limitations prevents over-reliance on services that may not fully function.

Stripe, popular internationally, does not directly support Georgian businesses currently. However, some Georgian companies use Stripe through foreign entity structures when serving primarily international markets. This approach involves complexity including foreign company formation and banking. Businesses contemplating Stripe use should carefully evaluate legal and tax implications. For Georgian-focused businesses, local merchant solutions typically provide better fit.

Wise Business accounts enable international payment collection though not traditional merchant services. Businesses receiving international payments from clients can use Wise for efficient, low-cost collection in multiple currencies. Wise works complementarily with Georgian merchant accounts rather than replacing them. The combination provides comprehensive payment acceptance covering domestic and international sources.

Best Practices for Payment Operations

Clear pricing display prevents customer confusion and reduces payment friction. Displaying prices including or excluding taxes clearly helps customers understand final costs. For online businesses, showing all fees before checkout reduces cart abandonment. Unexpected charges during payment processes frustrate customers damaging conversion rates and reputation. Transparency in pricing builds trust and improves customer satisfaction.

Multiple payment method support accommodates customer preferences. Accepting cards, cash, mobile payments, and bank transfers provides flexibility appealing to different customer segments. While managing multiple payment methods adds complexity, the increased sales typically justify efforts. Understanding your customer base's payment preferences guides which methods to prioritize. Urban younger customers prefer digital payments while older rural customers may favor cash.

Reconciliation processes ensure payment records match bank settlements. Regular reconciliation identifies discrepancies, catches processing errors, and detects potential fraud. Daily reconciliation for high-volume businesses prevents small issues accumulating into major problems. Accounting software with bank feed integration automates much reconciliation work. Unexplained discrepancies require immediate investigation preventing revenue leakage.

Customer service excellence around payments minimizes disputes and chargebacks. Clear refund policies, responsive support, and fair dispute resolution maintain customer relationships while protecting against excessive chargebacks. Training staff on payment processing, dispute handling, and refund procedures ensures consistent professional service. Good payment operations become competitive advantages in crowded markets.

Technology updates and payment innovation adoption keeps businesses competitive. Staying current with payment technologies like contactless, mobile wallets, and emerging payment methods prevents obsolescence. Georgian payment infrastructure evolves rapidly making periodic technology reviews worthwhile. Early adoption of beneficial innovations provides differentiation and improved customer experience before competitors catch up.