Offshore Payment Processing Solutions
Oftentimes, merchants who are considered high risk may experience difficulties in obtaining approval for merchant accounts with credit card processors and banks. This may be for any number of reasons, ranging from poor credit to residency or citizenship of the company’s owner(s). Luckily, offshore credit card processing is an option that can provide high-risk merchants with long-term, secure solutions when banks in the United States won’t approve them. PayDiverse has a large network of offshore banking solutions that are willing to work with high-risk merchants in nearly all industries.
Why a High-Risk Merchant May Need an Offshore Merchant Account
Offshore banks offer higher approval rates for high-risk merchants, meaning that offshore payment processing can be necessary for several reasons. Most commonly, a merchant may be unable to obtain approval with banks in the United States due to the industry in which they operate. Some industries that may benefit from offshore credit card processing include:
- Accounting and bookkeeping
- Background checks
- CBD and hemp retailers
- Collection agencies
- Coupon membership clubs
- Credit repair
- Electronic cigarettes
- Government grants and financial aid
- Hair restoration
- Magazine subscriptions
- Online auctions
- Payday loans
- Skincare products
- Tobacco and cigarette retailers
- Travel agents
- Weapons retailers
- Web hosting
Aside from conducting business in the above industries or other high-risk industries, there are several other reasons a merchant may require or benefit from an offshore merchant account. A merchant who is not approved for typical banking solutions due to their personal or the business’s credit history can benefit as well. Banks in the United States may decline a merchant application for reasons other than industry, including:
- The business has no credit history or poor credit history
- A business owner has a poor personal credit history
- High chargeback/return ratio
- An owner resides in a foreign country or is not a US citizen
- Transactions are conducted internationally or in foreign currency
- There is an irregular sales pattern
- Transactions are processed at a high volume or at a high average dollar amount
How Can High-Risk Merchants Benefit from Offshore Payment Processing?
Even merchants who may qualify for traditional banking solutions in the United States will opt to open offshore merchant accounts for their business. This is because offshore banks are less limited by trading restrictions, and as a result are able to open merchant accounts with significantly higher processing caps or no processing cap at all. New merchants or merchants with less processing history who happen to obtain approval with domestic banks are typically offered an account with a credit card processing limit of $50,000. Because of this, merchants who deal in high ticket items or process a particularly high volume of transactions will prefer to work with an offshore bank.
Offshore banks also generally uphold a less stringent approval process, meaning their underwriting criteria differs greatly from domestic banks. Underwriters are able to approve merchant accounts in industries and with credit histories that would not normally be eligible for an account with banks in the United States. Offshore merchants are able to overlook chargeback ratios to some extent, however, will not approve merchants with excessively high chargebacks.
How to Get Started with Offshore Credit Card Processing
PayDiverse offers offshore payment processing to all of our high-risk merchants. Our offshore solutions provide long-term simple solutions to merchants who would otherwise be unable to process credit card and debit card transactions. Applying for a high-risk merchant account with PayDiverse is a simple 3-step process:
- Complete our secure, online application form
- Digitally sign and submit your application
- Electronically submit your supporting documents
Once you’ve submitted your application and all supporting documents, our underwriters will determine your eligibility by verifying the information provided in your application and reviewing important details about your business including account balances, payment histories and the competency of your ownership. To increase your chances of approval, be sure to keep your account balances high, your bill payments up to date, and provide honest and accurate answers on your application. PayDiverse will provide you with a response within 24 hours of receiving your submitted application.
Once you’ve received your approval, PayDiverse will have you up and running with our secure payment gateway within 48 hours. You’ll be given access to all features of our high-risk merchant accounts including our award-winning fraud prevention tools that have been fully integrated into our payment gateway. You’ll also receive real-time chargeback alerts, chargeback dispute support, ACH/e-check processing capabilities, and access to our online portal to securely set up and manage and customize your account.
You’ll be set up with a minimum of four offshore banking solutions, providing you with long-term and secure offshore credit card processing capabilities. Multi-bank processing will limit your account exposure and aid you in keeping your chargeback and return ratios low. Additionally, in the event that one of your accounts is closed or limited for any reason, your business will be able to continue operating as per usual with the other banks in your network, ensuring your bottom line is never affected.
To get started with PayDiverse and take advantage of all the benefits of our high-risk merchant accounts including offshore payment processing, apply online today.
Diverse Payment Processing is Smart Processing
Fill out our free and quick merchant account application and let us match you with many banks that want your business.