Offshore High-Risk Merchant Account Transaction Volumes

Apr 01, 2022

When considering an offshore merchant account, there are a few factors to evaluate. There are also certain features that must be included to offer your services. 

Before diving too deep into research, it goes without saying that you must seek a provider that at least offers first-rate customer service and exceptional value compared to other competitors.

Why Do You Need An Offshore High-Risk Merchant Account?

If you happen to run a business that generates a considerable amount of transactions on foreign soil, you will need to ensure that you receive your payments in the local currency.

You may even run a business that is considered “so high-risk” that securing a high-risk merchant account in your home country would be impossible. 

Offshore merchant accounts address these issues and so much more. Having an offshore merchant account that includes an acquiring bank in the same market you do business in is highly beneficial. It facilitates the acceptance of the currency your customer base uses and it benefits your business when it comes to filing your taxes.

Another great advantage of having an offshore high-risk merchant account is that international banks are more willing to allow a higher processing volume than US banks. 

Having a diversified number of merchant accounts also protects your business by not putting all your eggs in one basket. You do not want to rely on a single merchant account to process all of your transactions. This is especially true in certain countries where cultural mores might prohibit the selling of your products.

Another plus to pursuing an offshore high-risk merchant account is that banking regulations are a bit laxer in other countries. Banks and processors are generally more open and willing to work with high-risk merchants. 

Minimum Transaction Volumes

One aspect of offshore high-risk merchant accounts that merchants must be aware of is meeting the monthly transaction volumes every month. This can vary significantly, based on the provider. 

Basically, your business must generate a minimum amount of transactions. It also requires you to pay a minimum amount of monthly processing fees. If your business meets this requirement, there is no need to pay anything beyond that.

By obliging businesses to generate a minimum amount of revenue for the provider every month, it eliminates the potential to incur a loss on your account. 

If you do happen to fall short of this minimum transaction volume, you will be subject to pay the difference between the minimum and the actual processing fees. 

Furthermore, each merchant account provider has its own method of calculating your processing charges to gauge whether or not you have reached your minimum. Many providers don’t attach any additional fees to make this determination. 

Generally, the only amounts that count towards meeting your minimum will be processing charges. These are paid directly to your provider. 

Larger, more established businesses will not need to be concerned with this monthly minimum. Their monthly volumes will surely surpass the minimum requirements. 

However, small, newly-opened businesses should be concerned as meeting these monthly minimums could prove more difficult and can ultimately impact their cash flow.

A new business struggling to launch will face more difficulty in paying these additional penalties for failing to process enough. 

Monthly Minimums Growing More Unpopular With Merchants

Merchants have opposed the monthly minimum. And they are beginning to push back. At least, via negotiation. Many providers are catching on and are allowing merchants to negotiate to reduce the monthly minimum. Some offer waivers for this expense.

The growing unpopularity of these monthly minimums has urged providers to drop this requirement altogether. 

Merchants should first read their contract carefully to ensure this has been adopted by the provider. If they really want to work with your business, they might be willing to drop this policy if you ask. 

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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