An offshore merchant account is one which is used for e-merchants who are processing payments through their website in countries that they don’t live in.
There are many reasons why a merchant would want to have an offshore account, including less stringent approval standards abroad. Being an offshore merchant can also be a great option to extend the services of many businesses, increasing revenue and global credibility.
Most merchants that benefit from offshore merchant accounts have been labeled as high-risk by banks and traditional payment processing providers. This may be due to their industry, high chargeback ratio or fraud, or poor credit ratings.
Being considered high-risk means that these traditional avenues of payment processing options are generally off the table.
However, that doesn’t mean that you won’t be able to provide your offshore services. There are many reputable businesses in the market that can provide high-risk merchant account solutions.
An offshore merchant account can help you grow your sales projections steadily by not capping the number of offshore transactions that you can process.
Offshore merchant accounts are also discrete and allow for easy fund transfers anywhere in the world.
They can also help you navigate the different tax liabilities and provide access to tax benefits in other countries, such as Ireland, Gibraltar or Malta.
Common businesses that benefit from an offshore merchant account are online dating, adult entertainment, CBD products, online gambling, telemarketers, web-hosting services, electronic cash, travel, and biotechnology, among others.
Working with a high-risk merchant account specialist also provides multiple layers of security to help guard your business against fraud and identity theft, which can end up costing your company a lot of money.
High-risk merchant account solutions are not a one-size-fits-all package, but a quality payment processing provider should be able to provide you with the following:
- ACH Processing
- Business Funding
- Chargeback Dispute Resolution and Prevention Programs
- Instant Check Processing Solutions
- High-Volume Payment Solutions
- Merchant Cash Advances
- Mail Order/ Telephone Order (MOTO) Processing
- Online Payment Gateways
- Point-Of-Sale (POS) Solutions
This should all work in conjunction with their experience and their access to a varied network of providers that can provide you with fair and customized pricing for your business needs.
There are, of course, some drawbacks to having a high-risk merchant account, including higher processing fees, rolling reserves, and other contractual obligations. These are put in place to help mitigate the risk of the payment processors. However, these drawbacks are minimal when compared to not being able to process card payments at all.
Applying for a high-risk merchant account through EMB requires minimal documentation and is fast. In fact, most applications are approved within 24 to 48 hours, meaning that you can start processing payments and making money sooner.
To get started, all you need is a valid ID, a bank letter or voided check, a secure and working website, three months of bank statements, three months of your most recent processing statements when applicable, and an SSN or EIN.
Start reaping the benefits of a high-risk offshore merchant account today!