Many domestic merchants now prefer to process with an Offshore Merchant Account as it offers many advantages.
Since e-commerce businesses are becoming more and more competitive with time, both the business owners and the customers find offshore merchant accounts beneficial, mainly because there is no hassle to open an offshore merchant account and getting a better service is easier. The usual requirements of having a business that has existed for a minimum of two years and making a security deposit of several thousands of dollars are not needed when an offshore merchant account is created. That is why it has now become comparatively easier for merchants to get accepted for an offshore merchant account. The only difference between an offshore merchant account and a simple merchant account is mainly the bank location, which for an offshore merchant account mostly resides in a different country.
*Cost-Effective and Hassle Free – Offshore merchant accounts tend to have a cost-effective and hassle free setup, merchants get better service and there are practically no deposit requirements.
*Economical Advantages – Business owners are no longer bound to select a bank in one country only. With offshore merchant accounts they become capable of expanding their business world wide and with low taxes it provides an economical advantage to merchants. high risk merchant account instant approval uk
*Easy Access – Offshore merchant account also provides relatively easier access to the business owners, who are now no longer limited to doing business with just a single company in a single state.
*Offshore Credit Card Processing – It enables offshore credit card processing and merchants are able to accept payments in multiple currencies.
*Decreased Taxes – Offshore merchant account tends to place the business owner in a favorable e-commerce world and as the bank does not exist in the same location as that of the merchant so it helps the business decrease taxes.
Some offshore banks and credit card processors do charge a slightly higher processing fees and discount rates however when the merchant realizes the tax savings they are incurring by processing offshore they discover they are far better off than if they had remained processing onshore. High risk businesses like online casinos, adult, pharmacy and travel merchants prefer using an offshore merchant account as most domestic banks (US) decline these business categories, owing largely to the high volume sales, potential chargeback and refunds etc. Offshore banks tend to be more liberal with their under-writing policies, tax savings and there are no sales volume restrictions.