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) June 4, 2009 -- Why a merchant may need an offshore merchant account - Merchants, especially those that transact business internationally may find it beneficial to use an offshore or non-domestic bank to process their credit card transactions. This can benefit the merchant because many non-domestic banks have a lot of experience in multi-currency transaction processing and have high volume merchant account processing capabilities.
The "real" purpose of an offshore merchant account - Offshore banks offer merchant accounts for various reasons. 1. So a merchant can secure a merchant account with unlimited processing capabilities. 2. The merchant may have been placed on the TMF or Match file with their domestic processor. 3. The merchant is looking to grow their business but are restricted by their domestic processor. 4. The merchants business is now considered high risk by their domestic bank. Offshore banks offer secure credit card processing, mostly by way of third party fraud scrubbing and secure payment gateways. Many of these security protocols are performed by independent companies to ensure a non-partisan security environment.
What to look for in an offshore merchant service provider - Shopping for a good, reliable merchant service provider can be very difficult for new and even well established businesses. Some things to look for in a merchant service provider are their ability to source high volume of sales and ability to accept high risk clients. A merchant service provider's portfolio says a lot about the ways they can serve you. While many merchant service providers specialize in certain industries and do a fine job, others that have a diverse portfolio can handle issues in a variety of ways. Research the merchant service provider. Ask the provider how long they have been working with the bank, what type of businesses have been most successful processing through their bank, as the provider if you will have the ability to speak with programmer, accounting department, chargeback department, and merchant support directly. (this is important)
What to avoid in an offshore merchant account provider - Beware of offshore merchant service providers advertising tax evasion and tax havens! This is not only unethical it is illegal! You have to report and pay your taxes. Beware of 99% approvals! This is impossible. If the provider insists it is true, then run for the hills. 99% approvals = bad merchant portfolios. Watch out for providers accepting questionable / controversial industries such as gaming and new companies. Chances are, if the provider is doing any of the above, they are aiding and abetting criminals and are turning a blind eye to the activity. This will come to haunt them in time. Do not risk your business on this type of provider.
Security and seamless credit card processing should be your number one priority. For more information on high risk merchant accounts and offshore credit card processing solutions, please visit http://www.stradafee.com.
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