WHAT MERCHANTS WOULD NEED A HIGH RISK OFFSHORE MERCHANT ACCOUNT?

Certain businesses are at times more at risk for fraud and bankruptcy when compared to conventional businesses and thus, must opt for an offshore merchant account.

Merchants that require a high risk offshore merchant account are usually categorized due to these factors:

• Internet sales of product/service is deemed illegal in certain jurisdictions
• Company Registered address is located in an offshore environment
• Poor or no merchant credit history
• High sales volume
• Increased frequency of refunds
• Increased frequency of chargebacks

The inability of the merchants of high risk businesses to get a domestic merchant account or credit card processing solution locally causes them to opt for an offshore merchant account. Moreover legal and tax regulations for high risk businesses are often flexible in offshore areas.
 
High risk offshore merchant accounts have the flexibility needed by many businesses to flourish by taking risks without affecting their financial credibility. This means that domestic financial institutes are conservative in their predictions and can at times see changes made by businesses as more risky than they actually are.

Merchants that may find it an advantage to open a high risk offshore merchant account would be in the following businesses:

• Adult Entertainment
• Online Pharmacy
• Replica Accessories
• Calling & Telemarketing
• Online Gambling
• Online dating services
• Alcoholic beverages
• Astrology and other occult based
• Computer Hardware and Software products
• Debt management 
• Discount services clubs 
• Discount health cards
• Prepaid phone cards
• Financial Consultancies
• Herbal items 
• ISP/email services/search engines

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