When you hear the term, Offshore merchant account, or just the word offshore, what initially comes to your mind? Suspicious. Somewhat illegal. Sounds paranoid, isn’t it? Don’t worry. It’s just but normal to be cynical about this. We have watched in movies businessmen being arrested because of having a “hidden” offshore merchant account. But in reality, an offshore merchant account isn’t as bad as it seems.

The baseline

First, let’s get to the basic premise of an offshore merchant account. If you are engaged in an business that fall under the categories of travel, online gaming, online pharmacy, adult website, outbound telemarketing, escort service, etc., then, an offshore merchant account is a feasible option for you. But, actually, no matter what kind of business you have, setting it offshore is always a feasible option. Emphasis are given to the afore-mentioned types because they are considered high-risk businesses by domestic banks.

Preconceived notions

Talking about high risk, this is one of the myths surrounding offshore merchant account. Some say that opening up one is a risky step. One of the reasons seen is that you opt to make transactions with foreign banks. Foreign , being the operative word, smells like anonymity or hidden from the public eye. Clearing this, an offshore merchant account is not actually a secret account. You just have a privacy option. Domestic banks also have the same clause for you to check if you want to keep your account private in a certain level as well.

Another gray area regarding an offshore merchant account is that it is a way to escape tax obligations. In certain cases, you may be lured to the promise that there are super-low or virtually no U. S. taxes due on your account for the reason that you will use a separate offshore- company (your company) to handle your credit card transactions for you, o r that you;’re not actually the owner, you just manage it, or that no taxes are owned on offshore trust incomes.

The reality is you may be be able to hold over taxes until you declare your offshore earnings, but the watchful eye of the Internal Revenue Service (IRS) is just computing on the shadows on how much you actually are liable to. You will not be able to legally set aside taxes without assuming an investment risk or make a total surrendering of your control over your assets. It is a complicated process that entails legal action from a legitimate financial consulting firm. Bottom line, taxes are an inevitable part of life. Every working citizen pays taxes.

Changing the impression

Setting up an offshore merchant account may seem tricky to most, to get a better perspective, get the services of a merchant account provider. They have an established network of foreign and yes, domestic banks, to help you set up a merchant account. This move will help you be more knowledgeable of the inner workings of an offshore merchant account.

They say, what you don’t know won’t hurt you. But, at the end of the day, knowing what really happens makes you feel connected to the world, in the case of an offshore merchant account, what you know will not hurt you as well.

Category : Offshore Merchant Accounts

What is an international merchant account?

The simple way of answering this is the activity of payment by international credit cards and its receipt online by a merchant. The meaning of international merchant account deals with the feasibility of acceptance of payments by the merchant through their online business. The modern way of making payments of purchases are routed through credit cards instead of cash payment in most of the cases. This compels vendor to make necessary arrangements for processing the payments accordingly. This is more applicable in the context of the online merchants who have their websites to collect international payments through electronic system. To avail this facility a merchant has to obtain an account from the authorized provider, who can be a banker or a credit card processor. Small business can do with a third party arrangement of merchant account provider without opening a merchant account himself.

Online businesses are a little bit risk involving kind of businesses and that is the prime reason that the domestic account providers hesitate to cooperate merchants for international transactions. The offshore or an international provider encourages the merchant to have an account with them for his online business with more flexible characteristics.

Therefore, this kind of merchant account is preferred by the merchant for his worldwide business activities. Over and above, there is definite benefit in tax payments provided by the international providers.

Important Aspects of International Merchant Account

There are host of advantages provided to merchant account holders like the preference of using the virtual terminals and the processing services in several international currencies. There are certain measures to protect the account holders from fraud and scam. Additional facilities include reporting online, the safety and security of transaction irrespective of any limit and joining with several elite credit card and debit card companies for easy transaction.

The processing fees that are charged are very high in this respect, which does not affect the account holders due to the large scale of transaction that they enjoy in this online business.

Benefits of International Merchant Account

The basic and supreme advantage is for the customers of your online business where they are free to make the payments online in their own currency, which is a positive advantage for the growth of your online business internationally.

The vendors are able to enjoy the practical payment processing favors so that they can make expansion of the online business to any corner of the world through a single interface of international provider. An international merchant account permits multiple currency transactions to develop the business.

Category : High Risk Merchant Accounts

Once you have decided to set up your business base in another country the first step in offshore company incorporation would be to decide upon the particular country where you intend to set up. Choose one whose jurisdictions are secure and legitimate and corresponding laws and regulations are simple.

The tax laws, communications efficiency, foreign exchange laws and regulations, banking facilities available and overall cost of company incorporation and maintenance etc should be given utmost importance. Always opt for expert advice regarding the actual formation. There are numerous firms which specialize in offshore company incorporation.

Once the location has been fixed, it is up to the owner to decide whether to visit the place or not. The services provided by certain online firms who are registered agents can be utilized to carry out the incorporation formalities.  It takes very little time if you have all the necessary documents ready. An online application form can be filled and all necessary documents sent to them by fax or courier.

A major step is to open an offshore bank account. Proof of identification such as Drivers License, Passport copies or National ID has to be provided to your incorporation agent as they have to maintain records of all directors, shareholders and beneficiaries of the company. All information provided remains undisclosed with your agent.

A Beneficial Owner’s Declaration known as BOD has also to be filed with the agent. This will highlight the present activities of the entrepreneur, the business he plans to conduct through the newly incorporated company, information related to his career etc. There should also be a signed statement accepting to obey the jurisdictions of the offshore country and not stray into any prohibited areas etc.

There is usually a middle man involved known as the ‘Incorporator’ who plays a vital role in offshore company incorporation. He is the official signatory of the incorporated company in its initial stages and is also the first share holder of the company. He has to subscribe to the minimum number of shares as required by the law and later transfer them to the rightful owner. You can further appoint nominee directors and company secretaries if you further look forward to not being actively involved in the company operations.

An amount will be charged as the incorporation charges as well as the fees of the agent whom you have employed. Choose a good name for your company which is acceptable to the offshore company regulations.

Category : International Offshore Company Formation

In spite of the world economic slump, the sustained development of multi-channel retailing entails that the business houses or services are persistently supplying their customers in keeping with their promises and orders. With vendors trying to bring their sales to the optimal levels and supplying endless services, there arose the necessity of a flexible and safe mode of payment that supports both the vendor and client. This gave birth to the E-Wallet solution. Just like one has a wallet to keep cash, E-Wallet holds cash for online transactions. It is not very cumbersome to go about getting E-Wallet processing

There are three main reasons to get E-Wallet account processed whether you are a merchant or a customer. a) It is far simpler to transfer money to manifold sites using E-Wallet. b) E-Wallet account helps to instantly transfer money from a particular site back into the E-Wallet. C0 Many sites refuse to allow the use of credit cards.

E-Wallet processing enables the customer to create secure account to keep their credit and debit card details. Once E-Wallet account has been processed the individual only needs to enter the postcode and the three digit security number that are not stored in the E-Wallet.

There are a number of providers who offer E-Wallet processing for both vendors and consumers. Consumers can get their E-Wallet processing done through the many financial organizations, specialized merchants or certain technology providers. For the vendor or the retailer who have a high volume of online business transactions E-Wallet is imperative in order to conduct their business smoothly and successfully.

The cost of processing E-Wallet varies from processor to processor and one has to scrutinize the processor carefully before selecting one that suits your requirements. Ensure that the one you decide has been in the industry long enough and are reliable.

E-wallet payout processing generally takes about three to four days which is comparatively faster than the time taken to process credit and debit cards. Many people utilize e Wallets for gaming sites, so such people should ensure that the sites they use are in the list of the providers as there are many rules that have been imposed by the E-Wallet providers who process your account.

E-wallets are becoming the most popular option to consumers of today. One can select their means of funding their e-wallet in order to make on the spot money transfer and E-wallet providers must necessarily be regulated and officially accepted by the governing financial regulatory board.

Category : Ewallet Merchant Accounts

Adult Merchant Services are those solutions that earn money through the business of adult websites. As you can well imagine online business that has anything to do with adults is considered a very risky affair and such business owners are not permitted to receive their payments through the national banks. Adult Merchant Service accounts differ totally from the various other merchant accounts. As a result of the risks involved a majority of the merchant account operators steer clear of the Adult Merchant Service business owners.

This is when adult merchant account plays an important role and is the best way out for those who own this kind of business. Processing of credit cards is the ideal solution for those in the adult business and assisting tthem to take their trade on to a different level. Reliable and authentic means of receiving payment draw a good clientele and the anti-corruption software ensure that the webmasters are suitably safeguarded. But it is pretty difficult to get hold of adult merchant services in many places.

There are two chief modes of payment in the adult merchant services. They are:-

  • The monthly  payment mode when the membership fees are paid on a monthly basis thus ascertaining a steady flow of money, and
  • The One-off fees where the full payment is made in one go and this in a way aids the business owner to construct a decent customer base.

Both the methods of payment have their pros and cons and in the early stages of business it would be a good idea make use of both modes of payment and those who provide accounts for Adult Merchant Services generally allow the trader to utilize both methods so as to increase their income till they have recovered the money invested. This is when the solution providers urge the merchants to create a merchant account to make payments through the credit card process system.

But the merchants have to pay through their noses to the account providers and the rates even go as high as 20%! This makes a dent in the vendor’s business and the only solution choice left to the vendor is to decrease his profit margin.

Taking all this intro account the Adult Merchant Services vendor should do good research on the internet to select an account provider that panders to all his requirements. With the advent of the internet there is no shortage of account providers and those who are willing to provide Adult Merchant Services accounts do not really care about where the vendor’s business is situated and their disbursement is fast and very efficient and will offer accounts to adult service business without an inkling of doubt.

Category : Adult Merchant Accounts

Check 21 is the cheapest, fastest and safest means of meting out check payments. When using check 21 facility, dealings are cleared utilizing the exchange of check images from bank to bank. Most of the high risk merchant service providers make use of this latest facility so as to hasten payments hence High Risk Check 21 processing is becoming the order of the day. People who write checks must necessarily be in the know of the Check 21 regulations.

Benefits of Check 21

  • One has speedier access to money which means one receives payments faster resulting in quick flow of cash.
  • Checkfile can be presented as late as 8 pm for clearing when compared to the time of ACH files.
  • Low risk of scam – the shorter the time required for dispensation the safer you are from fraud.
  • Online reporting system wherein a lot of reports can be gathered faster.
  • Check 21 is cheaper and faster as vendors utilizing the remote deposit capture do away with umpteen number of trips to and from the bank, thus saving on cost of transport also.
  • With the use of the remote deposit capture the manual process of preparing a check and the resulting errors can be reduced.

With the advent of the highly modernized Check 21 processing system, high risk merchant providers have found an exceptional option to the more restrained ACH rules.

High Risk Check 21 Processing is managed by certain laws regarding checks and the Uniform Commercial code that have nothing to do with the ACH rules. All the check 21 dealings are there when he receives the bank statement exactly in the same manner as they would have appeared if it were a paper check.

One very significant point that has to be kept in mind when writing out a paper check is to be very legible because when an electronic image of a check is taken, clarity is of utmost importance. This aids in steering clear of mistakes in the vendor’s account or his overdrafts. Also remember to keep a track of you check dealings and ensure that every check that is written is noted down.

Once vendors is armed with all the details of Check 21 he has to ensure that he sets up a High Risk Check 21 Processing account with a provider who will be dedicated  in learning the nuances of his business and suggest the best solution in accordance withy the vendor’s requirements. The vendor must ensure that he will receive excellent service, better processes of disbursement and rates that are greatly competitive.

Category : High Risk ACH Check21 Processing

Offshore is becoming the banking trend nowadays. Merchants are becoming more aware of the endless possibilities to reach a worldwide market. What lures them to divert from their local banks to opening up offshore merchant accounts?

  • Hassle-free application
  • Results of applying for an offshore merchant account are hours away. The application forms are available over the their websites so it saves time to scour for the avenues to submit your application.

  • Wide selection of banks
  • Choices for competent banks are endless. We’re not only talking about US banks but foreign banks from countries drawn on the world map.

  • Secured credit card processing
  • You can securely accept payments on your offshore merchant account through the advent of internet payment gateways. This also enables you to simultaneously take in payments in different currencies.

  • Fast account update
  • Deposits made into the account are updated real-time. Definitely suits your need for speedy and accurate information regarding your offshore merchant account.

  • Global market reach
  • You also have a worldwide reach to potential customers. Since you are operating on an offshore merchant account, marketing is also of global scope as well.

  • Big savings on taxes
  • The saying,” Nothing is permanent except death and taxes”, applies to all, and, yes, to merchant accounts as well. But setting it offshore will definitely reduce your tax responsibilities. fees are reduced to a considerable portion.

    Banking guidelines and policies are also a major turning point in offshore banks, they tend to be less strict starting from the application. They entertain virtually almost all inquiries from all over the world, regardless of past business performance or shaky credit rating. Criteria for approval are clear and concise that’s why you can expect for immediate results. Plus, they don’t require initial or security deposits compared to domestic banks. Expect results as fast as 24 hours and a week to set up the actual offshore merchant account.

    Your options for the perfect bank to cater to your merchant account needs are limitless. They may be offshore, but these banks are established that’s why they have the resources to go international. Competition is less stiff than domestic banks. They adjust to your needs, you don’t compromise your merchant account desires.

    Security is everyone’s concern. Offshore is not synonymous to hidden, the information is just located on foreign territory, still virtually open to verification. When you have an offshore merchant account, you can accept credit card payments over the internet. Once this happens, then you can actually sell your products online as well, thanks to the advent of shopping carts.

    The products are displayed online and a payment gateway to purchase the product of the customer’s choice is next to the display. This payment gateway will ask for the credit card account number and then immediately process the transaction like a normal domestic credit card transaction. In a matter of minutes, the customer will know if the transaction was approved or rejected. The payments gateways have multiple security protocols but on a faster pace.

    Access to your offshore merchant account information is also convenient. After passing critical verification, you can check on the state of your account round the clock. Thus, liberating yourself from waiting for business days to actually check on your account’s performance

    Reduction of taxes become possible by using a separate offshore-incorporated company (your company) to handle your credit card business for you. Taxes are actually cut down by 15% and in some cases, to 0%.

    The benefits you can get from the offshore merchant account bandwagon are countless. Once you’re in it, you’ll realize that it’s one of the best merchant strategies you ever ventured into.

    Category : Offshore Merchant Accounts