You read a lot of stories about how difficult it is to get an offshore merchant account. Well, opening an efficient, low cost, offshore merchant account 10 times more difficult. If you have a business that requires you to process your customer’s credit cards, you not only need an offshore company you need an offshore merchant account. You should already know that starting or moving your business offshore can offer significant tax benefits which are an added advantage.
To receive complete benefit from this offshore e-commerce opportunity, for tax optimization purposes, you need to set up an offshore corporation that you neither own nor control. This can be your platform for an international business that will have great tax benefits.
Offshore Merchant Account
The incredible growth of e-commerce businesses organized trough offshore company has changed the rules of credit card processing.
Benefits of offshore :
No monthly processing volume limits
Unlike domestic account providers, offshore payment processors do not enforce processing volume limits on their merchant accounts.
Offshore payment processors encourage their merchants to increase their business, using advanced security mechanisms to rule out fraud, whilst rewarding them with reduced rates and additional support. No matter of the flexibility of profits, all merchants should search an offshore provider with no volume limits, in order to increase their gross sales, expand their market and grow without the anxiety of fines or account termination.
Multi-currency and multilingual service
Offshore and third party accounts provide merchants with multi-currency and multilingual services. The ability to deal and communicate with customers in their own language is highly advantageous to a merchant, opening their business to a profitable international market and considerably expanding their customer base.
This is a service not very often offered by domestic processors, who regularly place blanketed bans on international customers instead of providing adequate security screening for widespread access.
Unlike domestic merchant account providers who are overly cautious and limited by legislation, offshore payment processors are free to accept any businesses they chose. It is more and more difficult for high-risk and/or high-volume e-commerce businesses to contract with a domestic provider, with many banishing their business models or requesting outrageous security bonds due to their perceived risk.
More reasons to choose offshore merchant accounts
Increase sales and grow your business through international access
- Multicurrency options
- 99% acceptance rate for low and high-risk industries
- No country discrimination
- No monthly processing volume limits
- Back end administration and full spread reporting
- Increase market penetration
- Full offshore security scanning
- Multi-lingual capabilities
You will have to pay higher rates in general:
Processing fees can be unpredictable when you process offshore. In fact, this is true for all costs involved including transactions fees, chargeback fees, and set up fees. You may be required to establish reserves before the processor will start transferring any funds to your account and if they are the anonymous type, you may never see those reserves again. Most of these offshore processors know that you may have no other choice and therefore take complete advantage of that.
Your chargeback rate :
When a credit card processor opens a new account, they view it as extending some level of credit to their new customer. This is because the processor is liable for any refunds demanded by your customers, called chargebacks, if you, the merchant, is unable or unwilling to pay. Offshore, the processor may be limited to withholding future transactions and closing the account. If the merchant is a high volume low dollar account they will obviously pay the chargeback. If they are a low volume high dollar account they may be unwilling to pay…and simply open a new account elsewhere. Most sophisticated merchants will run two or more merchant accounts for this reason.
Consider the best jurisdiction for your offshore company:
Setting up your company on some rock may be extremely easy, cheap, require no reporting, and cost nothing in taxes, but it may not be the best decision if you want to accept payments online.
Register a business and a bank account in your target jurisdiction:
To secure payment processing in another country, you must have a registered company in your jurisdiction of choice. If you are a European business owner and want to extend your business to the US, you must have a registered company in any of the 50 US states. Also, you’ll need to ensure one of the officers of the business is American. But that’s not all! It’s necessary to have a bank account specifically for that registered business.
Nowadays, every online business has a global approach and also has vast visibility that subsequently attracts customers around the world. Hence merchandising your goods globally sitting from your home country is a bad idea for any merchant for it costs more than your business setup. The first thing a retailer should do is having an offshore merchant account and using wisely to get more business from around the world and enhance the customer base.
Contact iPayTotal now to get more details about an offshore merchant account.