When it comes to credit card processing accounts, there are plenty of reasons to open and process payments through an offshore credit card processing merchant account. These accounts are usually recommended to high-risk merchants, who may have been labeled as such due to the industry in which they operate, or due to a poor processing history that’s the result of high chargeback ratios, nonpayment of fees, or poor personal credit.
What is Offshore Credit Card Processing?
An offshore or international processing account is one that’s held by a bank that’s outside of the U.S. In the U.S., banks often refuse to work with merchants that carry a higher risk, and those who are able to obtain accounts are sometimes subject to low processing limits, which can be detrimental to their business’s sales. Many other countries around the world have less stringent credit card processing rules and don’t tend to enforce volume limits on processing accounts, and as such, it’s easier for high-risk merchants to obtain accounts that meet their needs. Because of this, many high risk payment gateways work directly with offshore processing solutions to help merchants continually accept credit and debit cards from their clients.
Who Should Use Offshore Merchant Accounts to Process Payments?
The best candidates for offshore processing are high-risk merchants who operate in controversial industries such as CBD, nutraceuticals, multi-level marketing, and credit counseling. Additionally, companies with a history of excessive chargebacks, processing account closures, or poor personal credit history.
The Benefits of Offshore Credit Card Processing
Offshore credit card processing comes with several major benefits to the merchant. It can be an excellent solution to consider for those who’ve been labeled high-risk due to their industry, as well as those who deal in multiple currencies or languages.
Services is available in multiple currencies and languages
This is particularly beneficial for multinational companies and e-commerce sites that sell to multiple countries. Offshore banks generally process payments in a variety of currencies and can provide personalized service to merchants in other languages. Merchants who don’t currently operate internationally can benefit from the expansion opportunity that working with an offshore bank can bring them.
Credit card processing without limits
Companies that process a high volume of payments, or a low to moderate volume of payments with high dollar amounts, can benefit from the absence of processing limits that comes with offshore processing solutions. While banks in the U.S. typically enforce strict limits on their processing account holders, offshore banks aren’t subject to the same laws and therefore, they don’t have the same limitations. By processing payments offshore, merchants open themselves up to more sales.
High approval rates
In the U.S., banks and other merchant account providers are extremely particular about who they grant accounts to. This is due to strict legislation that governs financial operations throughout the country. However, offshore and international processing companies and banks aren’t subject to American law. That means that they’re able to approve any merchant they wish, which makes it a lot easier for high-risk merchants to obtain services offshore.
To learn more about offshore payment processing and other benefits of obtaining a high-risk merchant account, contact PayDiverse.
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