Offshore High Risk Merchant Account
An offshore high risk merchant account saves money, protects business operations, reduces operating expenses, and expands market reach.  Some businesses process all transactions through an offshore high risk merchant account.  Others companies combine domestic accounts with offshore high risk merchant accounts for the ultimate in payment processing security.

Offshore High Risk Merchant Account Saves Money

Integrating an offshore high risk merchant account into your strategic payment plans makes good economic sense for three primary reasons. 

  • Lower Discount Rates: Underwriting criteria for accounts vary according to acquiring banks.  An acquiring bank for an offshore high risk merchant account may place a business in a lower risk category than a domestic bank, resulting in a lower discount rate.  For example, adult entertainment businesses may obtain lower rates through an offshore high risk merchant account with an acquiring bank in Europe than through a domestic bank. 
  • Reduce Operating Expenses: Companies with world-wide operations discover that an offshore high risk merchant account can be beneficial in reducing operating costs.  For instance, funds settled to an offshore high risk merchant account can be used to pay vendors, affiliates, employees, or for other expenses within the region in which the acquiring bank is located.  As a result, foreign exchange costs can be eliminated, resulting in significant savings to the bottom line.
  • Interchange Variances: Interchange rates are different throughout the world.  Therefore, it can cost less to process transactions through an offshore high risk merchant account than through a domestic account.

Offshore High Risk Merchant Account Protects Business

Businesses with good acquiring bank relationships can be lulled into complacency, thinking that think a bank will continue processing as long as the business account is in good standing.  Companies with excellent payment processing history can be taken by surprise when a bank suddenly decides to terminate a processing account.

In these days of dramatic upheavals within financial institutions, accounts can be canceled due to bank mergers, portfolio sales, changes in underwriting criteria or government regulations.   Companies in higher risk classifications understand relying on a single processing account can put business operations in jeopardy.

Protecting processing continuity with an offshore high risk merchant account is part of sound business practice for many companies.  Payment processing operations are vital for any company. Contingency planning, including an offshore high risk merchant account is a smart way to assure income flow.
 

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