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UK banks consider money transfer services as risky and so we can't get merchant account, although we are regulated by the Financial Services Authority. Does anyone know offshore banks that provide merchant services?

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did you in the end find a merchant account, we found ourselves in similar position to what you were. let me know if you can be of any help. – user15062 Dec 15 '11 at 22:33

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SagePay do a full UK merchant account now, maybe try them. We considered it, but it was just a huge amount of paperwork for a minimal reduction in % charged. But if your margins are thin, might be worth a try.

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You can try an online service such as PayLane.com

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