Offshore Merchant Accounts

Companies establish offshore merchant a accounts to save money, mitigate risk, or gain business advantages unique to particular jurisdictions. Offshore merchant accounts are payment processing accounts established in a territory outside of a company’s initial country of incorporation.

As an example, a company initially registered as a US corporation establishes a payment processing account in Europe. The European account is considered an offshore merchant account for the US corporation Or, a European corporation establishes a payment processing account in Asia. The Asian account is considered an offshore merchant account for the European corporation.

Benefits of Offshore Merchant Accounts

  • Reduce risk with diversification of payment processing
  • Save money on payment processing fees
  • Increased flexibility with choice of banks
  • Protect assets and cash flow
  • Boost revenues with additional sales
  • Enhance security with superb fraud protection
  • Power business growth with unlimited payment processing

Can Offshore Merchant Accounts Save Money?

Amazingly, offshore merchant accounts can actually reduce credit card processing expenses.

Credit card payment processing fees for international cards are higher than processing fees for domestic credit cards. Payment processing fees charged by domestic acquiring banks for international transactions are expensive and negatively impact operating costs.

For example, consider a European consumer using a credit card issued by a European bank. The consumer makes a purchase from a merchant that processes all credit card transactions though US merchant account. The purchase is processed as an international transaction by the US acquiring bank. The fees paid by the merchant for this international transaction are much higher than if the same item were purchased by a US consumer using a card issued by a US bank.

If the merchant established an offshore merchant account in Europe, orders from European customers would be considered local payments and carry much lower payment processing fees. Businesses save money by using offshore merchant accounts with low-cost “in-country” payment processing rates for international transactions rather than paying higher fees for international transactions processed through domestic acquirers.

How Offshore Merchant Accounts Reduce Payment Processing Risk

Companies with high payment processing volumes can find their business at risk if merchant accounts are held by a single acquiring bank. What happens if the acquiring bank is unable to process transactions? How will the company’s business operation and cash flow continue?

Diversification with offshore merchant accounts is a strategic defence to protect payment processing and mitigate risk. Contingency plans are essential for all aspects of business operations. Offshore merchant accounts are an easy way to safeguard business against potential loss.

Additionally, merchants in certain business categories find it easier to establish merchant accounts offshore than domestically. For example, European acquiring banks are friendlier to internet merchants offering adult entertainment digital content than are banks located in the US.

Offshore Merchant Accounts Experts

Satisfied clients say superior payment processing solutions combined with highly competitive rates are the reason for using our services to establish offshore merchant accounts.

As payment processing professionals with years of experience in offshore merchant accounts, we help clients establish the right banking relationships to ensure business success. Exclusive personalized attention guarantees clients with offshore merchant accounts will maximize revenues and minimize risk.

There is no charge for applying for an offshore merchant account. All information is held in the strictest confidence.

Case Summaries

  • Digital Entertainment Websites. A successful advertising campaign resulted in significant growth in payment processing volumes for membership websites. The merchant’s US merchant account had payment processing limits and could not accommodate the number of new orders. Company established high volume offshore merchant account in Europe and now can process as much volume as required. The rates on the offshore merchant account were actually lower than the merchant account in the US.

  • International Charity. This non-profit charitable foundation established an offshore merchant account in response to international donors’ requests for to make contributions in local currencies. By processing international electronic transactions through an offshore merchant account, the non-profit saved money on payment processing fees and increased donations.

  • Multi Level Marketing Company. The direct sales organization sells products in 30 countries. The company has websites in different languages where distributors and customers can order products. Electronic transactions are processed through offshore merchant accounts.

How to Apply for a Merchant Account

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