Merchant Account Offshore
Businesses discover that a merchant account offshore increases profits, decreases operating expenses and streamlines operational efficiencies. Some companies open a merchant account offshore for the sole purpose of high risk processing. But, many companies in non high risk processing categories establish a merchant account offshore as well.
The term offshore merchant account simply means that the acquiring bank is located in a different jurisdiction than a company’s original country of incorporation. For instance, if a US company establishes an account in Europe, the European account is considered an offshore merchant account for the US company. Conversely, if a company domiciled in Europe opens an account in the US, the US account is considered a merchant account offshore for the European company.
Merchant Account Offshore Business Benefits
A merchant account offshore offers businesses in both high risk processing categories and non high risk processing categories a wide array of benefits.
- Save Money: Interchange for card transactions vary by region. It can actually cost less to process certain transactions through a merchant account offshore than through a domestic account.
- Protect Business Operations: A merchant account offshore diversifies payment processing and mitigates risk. Some companies in high risk processing categories establish a merchant account offshore in addition to a domestic account to assure continuity of processing
- Reduce Expenses: Funds from a merchant account offshore can be used to pay vendors, employees, and operating expenses in local currency, and eliminate the cost of foreign currency exchange.
- Account Approval: Merchants in certain high risk processing categories find it easier to obtain a merchant account offshore than a domestic account.
- Boost International Sales: One of the easiest ways to boost sales from global customers is to allow buyers to purchase in local currency. Multicurrency processing is a standard feature on a merchant account offshore.
- Increased Processing Volumes: A merchant account offshore frequently has unlimited processing volumes. This is particularly helpful for rapidly growing companies in high risk processing categories.
Merchant Account Offshore High Risk Processing
Companies in both high risk processing categories and those in non high risk processing classifications set up a merchant account offshore because it makes good business sense. The ultimate goal of any business is have the best payment processing solutions, regardless if the solution includes a merchant account offshore, domestic processing, or any combination thereof.
Yet, there is little doubt that companies in high risk processing categories are the leaders in innovative payment strategies. The challenges involved in high risk processing make it a necessity for these companies to implement solutions with foresight and planning. A merchant account offshore is an important element of long-term protection for high risk processing.
In these times of international ecommerce the term merchant account offshore seems almost archaic. The world is rapidly becoming one global marketplace. Setting up a merchant account offshore is fast becoming a standard business practice for savvy companies to maximize growth and mitigate risk.