| Why opt for an Offshore Merchant Account | | | | and charge back fees. Discount is offered by the |
| Companies operating in a particular country look for | | | | offshore merchant account provider if the |
| ways to reduce their tax liability as well as to set up | | | | percentage of transaction is higher which is paid to |
| operations offshore. Some are also interested in | | | | the merchant account provider. |
| setting up business through internet like drug selling, | | | | What is offshore processing? |
| online casino and internet gambling where they need | | | | Offshore processing uses banks to offer credit cards |
| to accept payment through credit card. These | | | | alternatives for high risk processing and relieves |
| companies can benefit tremendously by opting for an | | | | merchants from billing limitations which might be |
| offshore merchant account. | | | | prevalent in countries other than US and UK. |
| A merchant account is meant for merchants to | | | | It largely focuses on online businesses which involves |
| receive credit card orders from clients online or | | | | credit card transaction services. These services are |
| directly. | | | | safe, reliable and cheaper payment dealings which |
| Of late, the interest rates charged on credit card | | | | enable merchants to take and process payments in |
| balances have reduced vastly. In the past, the | | | | different currencies apart from payment through |
| merchants were charged 7% to process customer's | | | | credit and debit cards which help them to do business |
| credit card purchases, whereas now the rates have | | | | internationally. |
| reduced to 3%. In spite of these reductions, the US | | | | As a result, business improves and the low taxation |
| small businessmen have difficulty in having their own | | | | of zero percentage in offshore processing enables |
| merchant account. | | | | the companies to have greater profit through online |
| Under such circumstances, businesses involving credit | | | | businesses. |
| card payments from international customers can | | | | As the basic taxation rules are not applicable to the |
| benefit from having offshore merchant account. Prior | | | | firm due to the bank being offshore, the company is |
| to selection of a merchant account provider, a | | | | able to gather revenues and make profits. Owing to |
| through study of the market is needed which will | | | | the processing, there can be an increase in sales |
| enable them to get better deals of setting up an off | | | | statistics in online business as well. |
| shore merchant account increases. | | | | Speedy approval of transactions as well as better |
| Fee and charges | | | | customer services which help in better sales and |
| The fee of an offshore merchant account is quite | | | | better terms and conditions which are better than |
| high and involves charges like transaction fee, | | | | other domestic banks. |
| discount rate, installation fee, monthly minimum fees | | | | |