Payment Processing Solutions Business Cash Advance Merchant Account Affiliate Program

Helpful Tips When Thinking About Opening an Offshore Merchant Account

In today's global economy, an Offshore Merchant Account or offshore credit card processing can be a valuable tool to expand your e-business. If you're unfamiliar with the ways and means of an Offshore Merchant Account, the term might have an exotic ring and can even conjure up images of international intrigue. But the truth is very basic and down to earth: an Offshore Merchant Account is used in much the same way as a standard merchant account, with one notable difference: the Offshore Merchant Account is located in a different country from your own.

Here are answers to some common questions business owners might consider when thinking about opening an Offshore Merchant Account or offshore credit card processing:

What is an Offshore Merchant Account?

An Offshore Merchant Account is a company account that is set up with a bank or financial institution in a different country from where your business is located. Like a local merchant account, an Offshore Merchant Account is used to process a company's credit card transactions.

How would my business benefit from an Offshore Merchant Account?

With an Offshore Merchant Account, you can be open for business all day, every day, with customers able to submit payments from all major credit and debit cards 24/7, 365 days a year. And with an Offshore Merchant Account you can accept any kind of worldwide currency, expanding your business and attracting customers from every corner of the world.

Offshore Merchant Accounts are particularly attractive for online companies that fall within the high risk merchant category - e.g., gambling, pharmaceutical sales, currency exchange - as offshore banks can be more willing than domestic providers to set up accounts for these enterprises; they're also often more lenient about giving accounts to businesses with less-than stellar credit histories. Many offshore banks offer round-the-clock customer and merchant service at no charge - and offer low cost offshore merchant account options.

Another advantage of an Offshore Merchant Account is that, depending on the country where you set up your offshore account, you might be able to reduce your company's tax liabilities. Look for a bank in a "tax haven" country, where tax regulations are more flexible; tax charges on your online transactions can be reduced and your profits then increased. In most cases, you won't have to set up an actual office in the off shore location to qualify for an account there, and your funds can be deposited to the bank of your choice, anywhere in the world.

Is an Offshore Merchant Account safe?

Offshore Merchant Accounts offer the same safety guarantees as other e-banks, for both merchants and customers. Since offshore banking plays a major role in the economy of some countries, those locations often protect themselves with state-of-the-art security technology.

When you're setting up an Offshore Merchant Account, make sure you're choosing an established provider with a proven track record:

• How long has it been in business?
• What kind of fraud protection does it offer?

How does a business set up an Offshore Merchant Account?

Online applications for an Offshore Merchant Account are no more complicated than for any other merchant bank account. In fact, some of the requirements you'll find at a domestic bank - like making a sizeable security deposit, for example - might not be a prerequisite when you're setting up an offshore credit card processing or an Offshore Merchant Account. Online offshore merchant account application forms can be found at the financial institution's website, and you'll also need to provide government-issued ID information for your company's officers, copies of the company's bylaws and Certificate of Incorporation and bank information.

Learn more about High Risk or Offshore Merchant Accounts with MAXX Business Solutions.