As a merchant services provider for high risk industries, we often draw incredulous responses from merchants when we suggest they apply for an offshore merchant account for their business. Once we explain the benefits of offshore and international merchant accounts, is when the merchant begins to understand that taking such a route is the best move for their business.
When looking for an acquiring bank, we believe US merchants naturally assume they will partner with a domestic bank. When the suggestion of a bank outside the US is proposed, merchants often react confused and defensive, understandably.
If you are an online merchant looking for a better way to accept credit card payments for your business, then an offshore merchant account may be just the solution you need. In the current payments ecosystem, no business is complete without a merchant account as it allows business owners to process credit card transactions.
An offshore merchant account has many advantages.
Offshore Merchant Account vs. Domestic Merchant Account
The major difference between an offshore merchant account and a domestic merchant account is simple. An acquiring bank that issues offshore accounts resides in offshore countries and an acquiring bank that issues domestic accounts resides in the same country as the merchant.
For instance, a merchant living in Ohio, USA, could apply for an offshore merchant account with an acquiring bank in Mauritius or a domestic merchant account with an acquiring bank in Florida, USA. There are many factors to consider when faced with this option.
Offshore Merchant Account Advantages
One of the major advantages of offshore merchant services is also one of the major differences between an offshore and domestic merchant account: the likelihood in which an offshore acquiring bank will approve a merchant account application. Offshore banks tend to be more liberal and accepting of high risk industries.
As a result, opting for offshore merchant services means fewer trading restrictions, making it easier for online merchants working in high risk industries—such as computer services, IT tech support, or penny auctions—to get an account.
Additional advantages of getting an offshore merchant account include:
- Offshore Credit Card Processing:By processing credit card transactions offshore, you can accept payments in multiple currencies.
- Low Taxes or No Taxes:With a merchant account in an offshore country, you’ll benefit from that jurisdiction’s tax requirements.
- No Transaction Volume Caps:Offshore acquiring banks generally do not put a cap on how many transactions you can process per month, allowing your business to maximize profits and reach its full potential.
With its many advantages, it is easy to see why an offshore merchant account is the right solution for any merchant looking to process credit card payments online.
No fees until you’re processing
Instabill is partnered with several offshore and international acquiring banks that welcome high risk merchants. Ideally, we prefer a one-on-one conversation with merchants to which we’ll ask a few questions and get a feel for their payment processing needs.
A provider of offshore merchant accounts since 2001, we know which acquiring banks are best for certain high risk industries. Even better, we won’t charge merchants any fees until they are processing transactions fluidly through their websites. That is our motivation.
Speak one-on-one with a merchant account manager today by clicking the button above or simply contacting us at 1-800-530-2444.