An offshore high-risk merchant account is required for merchants having international buyers or consumers to accept payments. The acquiring bank or offshore payment processor is based in a different country than the company’s headquarters.
An offshore merchant account is similar to that of an international merchant account. The line that differentiates these two is that the US bank considers the offshore account a high-risk account, whereas the international merchant account is a standard or high-risk account.
Are you wondering why merchants don’t just choose the international merchant account option? Here are some of the reasons high-risk businesses opt for offshore credit card processing.
Industry type, processing volumes, tax considerations, diversification, and targeted markets are all reasons why high-risk merchants open offshore merchant accounts. Because of the products or services they sell, certain high-risk merchants are not eligible for US merchant accounts. Forex trading platforms, online gambling and sportsbooks, adult entertainment, and nutraceuticals are just a few examples of businesses that use offshore merchant accounts.
Due to the nature of their business, offshore merchant accounts are ideal for processing payments for merchants who, are unable to obtain a domestic merchant account.
What are the necessities for opening an Offshore Merchant Account?
- A government-issued photo ID,
- A check that has been voided,
- The most recent three months of bank statements,
- An SSN (Social Security Number) and/or an EIN (Employer Identification Number)
- A fully functional, secure website, or in a dev environment
Benefits of Offshore Merchant Account.
If you’re a global corporation, having a local bank in the market where your customers are located can be advantageous. Different countries regulate the banking industry differently, creating a favorable environment for banks and processors to work with high-risk businesses. This will allow you to accept payments directly without having to make any currency exchange, which could reduce your earnings while also lowering your tax liability and lowering the risk of credit card fraud.
The world is converting into a single marketplace, allowing online merchants to expand beyond national borders, boosting sales and profits. You could manage all payment processing accounts from a single control panel thanks to a single plug-in to the offshore payment gateways.
On a global or individual account basis, reporting, accounting, and reconciliation of processing data are all easily accessible. Offshore merchant accounts could indeed help you save money on operations. In the local currency, pay local vendors, workers, and overhead expenses. To increase sales, offshore merchant accounts can include preferred “in-country” alternative payment methods.
Tips for Getting Offshore Credit Card Merchant Accounts Approved Quickly
- Positive cash flows should be shown in business bank statements.
- Ecommerce websites must be working in condition
- Post refund and privacy policies on websites
- It’s great if chargebacks are low. If not, include a brief explanation of why chargebacks are increasing and what steps are being taken to reduce chargebacks.
Radiant Pay team is a powerhouse of brilliant minds who collaborate to deliver comprehensive solutions that are tailored specifically for your company! We have a broad understanding of payment dynamics in a variety of industries. We can help your business qualify for credit card acceptance from our vast pool of offshore banking partners at a low cost for Offshore Merchant Account Solutions thanks to our experience and scalable payment solutions.