High Risk Merchant Services Financial Consulting And Management
Every company knows about the significance of payment processing, particularly online organizations. There is a wide range of alternatives when a business goes searching for a payment solution. Some organizations effortlessly discover merchant accounts while others are not all that fortunate. High risk merchants are among the merchants that are considered “not all that fortunate.”
Merchants classified as “high risk,” have an unending clash of; finding, setting up and keeping merchant accounts. Merchants will utilize different accounts to spread their processing volume (and risk) if one of the accounts is closed. The trouble is for merchants who require consistent support with their payment processing solutions.
The payment processing industry is extremely confusing and continually changing; from the wording to the innovation and administrative prerequisites. High risk merchants require a payment processing proficient that will help control them through this each evolving industry. If your team requires complete guidance with finding and coordinating new processing solutions or only an additional processing solution, iPayToTal can help. Payment processing consulting meetings are available by; email, phone, Skype or face to face.
Offshore Merchant Account
This can mean one of two things: either a merchant account with an offshore bank (acquirer) or a merchant account with an onshore bank held by an offshore entity.
The most common is the former. The latter is not quite as common, since onshore banks prefer to deal with merchants in more reputable jurisdictions than the jurisdictions where offshore companies are mostly registered, such as Seychelles, Belize, British Virgin Islands, and so on.
There is a common misconception that an offshore merchant account is automatically high-risk. This is not the case. However, merchants who seek offshore processing are usually doing it because offshore acquirers are far more lenient when it comes to issuing merchant accounts and what type of goods and services can be sold, due to more relaxed laws and requirements on the merchant. This is one of the greatest advantages of having an offshore merchant account.
You may also be subject to stricter banking secrecy with an offshore bank than you would otherwise.
Credit Card Processing and Offshore Banking
When working with a credit card processing provider that specializes in high risk merchant accounts, your application will most likely be approved. This typically involves offshore banking and an offshore merchant account.
Offshore Bank Merchant Account Rates
Often, high risk merchants will pay high risk rates. However, we have found that we save 98% of vendors on processing fees over what they are currently experiencing whether they have low, medium or high risk needs. Be cautious because there are many providers who will automatically approve applicants with predatory contracts and outrageous rates. Always check your contract and see if there’s standards for minimizing the transaction rates. Larger reserves, rolling reserve agreements and other types of risk minimization can help an applicant obtain the best rates possible.
Do I Need of an Offshore Bank Account?
A business can be labeled high risk due to its industry, an owner can have bad credit, the business can be owned by a foreign business entity with transactions inside the U.S., the product or service could be illegal in some local, state or federal laws, even questionable marketing or sales tactics can mean that an offshore merchant account is the only option to process credit cards online. In order to have one, most merchants require you to have a bank account in the jurisdiction where the credit cards are processed. That means setting up an offshore company and offshore bank account.
Businesses That Need an Offshore Merchant Account
Most people believe that high risk merchant accounts are only for online casinos or pharmacies, however with today’s lending guidelines and financial account requirements, a lot of trusted brands and online businesses are “high risk” and require a specialized credit card processor.
When You Need to Change Offshore High Risk Merchant Account Providers
Offshore High Risk Merchant Account Providers
Occasionally offshore high risk merchant account providers are not what they seem to be. We have been at the high risk credit card processing space and the landscape carries on change and develop with the new rules, put forth from the major card issuers and governments. Staying on top of those changes is paramount to staying applicable in high risk payment processing. Hence, retailers looking for a change in payment service provider is more common today than ever since the environment is harder and choices with a change in. Reasons can be several, they may be complicated or the merchant thinks they may get better rates which is why they support an offshore merchant account solution to expand.
Why Do Merchants want To Change Offshore High Risk Merchant Account Providers?
Too few solutions: Perhaps you have outgrown your payment service provider, who can’t offer you an offshore merchant account solution to expand and accept.
Expand to other nations and regions: You’re just a domestic merchant, but want an offshore merchant account solution to expand and accept additional transactions from other countries. Seeking company registrations: With new rules from the European Union, retailers are needed to register their businesses inside the EU.Our first piece of advice is the most crucial without question. Whilst a merchant might not be pleased with his/her offshore high-risk merchant account supplier, the merchant agreement plays a vital role.
What’s Involved When Changing Providers?
From our standpoint, a few hazards may be found by retailers.
Withheld rolling reserve: The payment processor can withhold the rolling reserve for a period of 180 days to cover up any future refunds or chargebacks. This is a very common practice.
Withheld funds: Several banks can hold your funds, utilizing for chargebacks in increments to cover.
Exit fee: Early departure or termination fees may be imposed on merchants as per the agreement which they have signed with their payment processor. Again, it’s a typical practice in payment processing because obtaining banks and merchant account providers will need to safeguard themselves. The penalties for opting out of a merchant account contract vary from bank to bank but may be severe. We recommend choosing a safe route – reevaluate your requirements while seeing the terms of your contract. For retailers who want to start a high-risk merchant account, maybe your PSP has a partnership with another supplier that may accommodate you.
How can IPAYTOTAL LTD Help
We review your business details and select appropriate banking partners amongst our network of acquiring banks and regulated EU payment institutions. We work closely with our merchant throughout the application process without any upfront fees. Our goal is to have our Merchant’s account approved as soon as possible with the best rates. Typically within 7-14 days, our Merchant’s account is ready to be integrated on the website with a selected payment gateway or a Virtual Terminal to accept credit card payments.