There are many times when, while on the phone with a prospective merchant, we might say to them, ‘It would be best for now if we arrange an offshore high risk merchant account.’ Usually, the explanation elicits confusion and hesitation, especially when it’s a startup merchant with whom we’re speaking: ‘Wait a minute. I want to process payments with a domestic bank. Why are you making me go offshore?’ We’ll explain the reasoning behind it – how domestic banks can be unpredictable with certain industries, how offshore banks are more liberal and accepting, etc… — and do our best to explain that an offshore merchant account is his/her best option. Sometimes the prospective merchant will solicit a second opinion, but a seasoned, sound high risk merchant account provider will tell them the same.
An offshore high risk merchant account is necessary… when accepting other currencies
If an e-commerce merchant has plans to sell to consumers in different countries and accept different currencies, an offshore merchant account is a must. Contingent upon what countries and regions in which the merchant wishes to do business, s/he may need to register their business within that country/region, such as the European Union or United Kingdom. As company registrations are more stringent and regulated, Instabill has a solution in place to help businesses register and establish a presence in both regions.
…for most high volume merchants
When finding payment processing for high volume merchant accounts, we quickly learned that domestic and offshore banks are at either end of the high volume spectrum: Offshore banks require a minimum sales volume while domestic banks require a maximum volume. Truthfully, high volume merchants (and merchants in general) tend to shun banks which impose volume caps, opting to process without limits. That said, for merchants in the industries of, for example, CBD, multi-level marketing or nutraceuticals, we’re going to strongly suggest getting an offshore merchant account.
…and possibly for your industry type
It might be for legal or regulatory reasons, or perhaps, domestic banks are simply opposed to offering payment processing for certain industry types: Some industries require getting an offshore high risk merchant account. Regarding the latter reason, in recent years we’ve seen acquiring banks begin to decline high risk businesses such as online pharmaceuticals, payday lenders, adult content and online dating. Domestic acquiring banks simply don’t want the aggravation that comes with them, such as chargebacks and/or reputational issues. Industries that have legal and regulation issues include online gambling and daily fantasy sports, still against federal law in the U.S. (although some states, Pennsylvania, Nevada and Delaware, have legalized it). Such industries are perceived differently in different countries and regions of the world.
An offshore high risk merchant account…and so much more
With a merchant account from Instabill, merchants and partners have access to the best international banking solutions worldwide – banks which welcome the previously mentioned industries and others that require getting an offshore merchant account. With a 10-minute conversation, we can preapprove your business and select the best banking partner that specializes in merchant accounts for your industry. Instabill also offers our live support from our expert merchant account managers from Monday through Friday, 8 a.m. through 6 p.m., U.S. eastern time. Additionally, as high risk merchant accounts tend to have higher rates of chargebacks and returns, we offer our free online guide, Instabill.org, devoted to mitigating chargebacks and keeping your offshore high risk merchant account within the good graces of your acquiring banking partner.
