Offshore merchant account impact on your online transaction

 For businesses that are operating online, an online merchant account is a must. Because if you want to accept online payments it is compulsory to open a merchant account. When you are searching for a merchant service provider, you will find the term Offshore Merchant Account. Now you are thinking about what an offshore merchant account is. However, it also has negative sides and these accounts are reserved for high-risk merchants. And that cannot get approved for a merchant account in their own country.

It is a fact that some offshore merchant account providers offer a high-risk industry. But it is not happening with all other offshore merchant account providers. So let us understand.

Define offshore account

It is similar to any other account. But it is with a bank in another country. So this type of account allows receiving online payments by credit card processing. And it is not limited to any industry type. But it is available for merchants of all the business classifications. And you can get this account opened to get its benefits. And this account is more profitable for merchants in spreading their business. Beyond geographical boundaries as international merchants.

International merchants sell a product or service to both domestic and international customers. And provide real-time credit card processing in the local currency of the customer. And for safe and secure credit card processing. So the merchants should work with local banks of other countries.

Benefits of an offshore merchant account

Multiple banks support. After applying for an offshore merchant account. You are provided with a list of multiple banks. Moreover, you can select from according to your business requirements.

Hassle-free obtaining an offshore merchant account. Getting an offshore merchant account is straightforward. Because application forms are available on the providers’ websites, which saves your time.

Multi-Currency acceptance. If you are operating a business catering to international customers. Then you’ll need an offshore merchant account. So you can accept payments in your desired currencies.

Secure credit card processing. If you have an offshore merchant account, you don’t need to worry about the leakage of your customer’s data.

Real-time updating. You will receive real-time updates about the transactions processed in your account.

Expand globally. By getting an offshore merchant account, you will have the opportunity to enhance your client base globally. Moreover, you’ll have the chance to boost your business globally.

Low taxes. Having an offshore merchant account will reduce your taxes. You can avail of various tax benefits as per the tax requirements of the country, where the offshore bank is located as compared to a merchant account of your country.

No limits on transactions. Mostly, offshore banks do not limit the monthly transactions. And that allows your business to increase profits and reach its maximum limit.

How can you select an offshore merchant account?

If you want to opt for an offshore Payment Gateway provider. You will find many merchant account providers. Moreover, getting a suitable match for your business requirement is a typical task. When you are searching for an offshore account provider. You will have to consider these factors.

Payment Gateway. Having a merchant account only is not enough to accept online payments. But you will also need a payment gateway to process all the transactions. And if a merchant wants to sell products or services to international customers. So your merchant account provider has to provide you with a reliable payment gateway for the real-time processing of payments.

Multi-Currency Acceptance. An offshore merchant account should provide merchants with local currencies of different countries to process payments smoothly. So your payment service provider needs to provide you with a multi-currency allowance. And if you are going to spread your business region. Because you will have to ensure that your merchant account can accept the currency of that country.

Security. If you are looking for a secure credit card processing system. Then your offshore merchant account should have anti-fraud prevention tools like AVS, CVC, and pre-authorization are important. However, it will also help you in reducing the chargeback ratio.

Are all offshore accounts considered high-risk?

An offshore merchant does not term high-risk. And it depends on the geographical location of your business. In certain criteria, most merchants may term these accounts as offshore. Because others may consider them onshore. Because it is advised to work with a reliable provider. However, it also offers complete security to every credit card processing. And it will also provide merchants with various opportunities. And it supports growing their business economically and geographically as well.

An International merchant account is considered high-risk. Because it caters to businesses that have a high risk of fraud and bankruptcy. So these businesses include.

High Sales Volume.

High Chargeback ratio.

Poor Credit History.

If the business registration address lies in an offshore region.

Most businesses have to take risks. And without impacting their financial credibility. And to increase growth in sales. So this flexibility is provided to the merchants by High-risk merchant accounts.

Domestic financial organizations find it risky. And they avoid approving a merchant accounts to high-risk businesses.

Let’s Wrap Up

Amald provides complete solutions to set up an offshore account. Along with a payment processing gateway for your high-risk business. Your business can start accepting online payments. And if you have any queries. You can contact us anytime. Or can drop us a mail. We will revert you.