How to use an offshore merchant account?
Definition
An offshore merchant account is an internet account established by a merchant through a working relationship with an international bank for ecommerce purposes.
USES OF AN OFFSHORE MERCHANT ACCOUNT
The offshore merchant account can be utilized by entrepreneurs of small businesses like:
- Toys and games
- Jewellery
- Handicrafts
- Books
- Music
- Consultancy
- Etc.
High risk businesses prefer setting up an offshore merchant account as domestic banks do not support their business prototype. The high sales volume, the associated risk in terms of fraud and frequently poor credit history make offshore merchants accounts an attractive option for high risk merchants.
Offshore banks are more willing to provide merchant accounts to such businesses which usually fall in the following categories:
- Investment and Funds
- Telecommunication
- Biotechnology
- Gambling
- Imitation products
- Pharmacies
- Travel
- Nicotine
- E-cash
Many property and estate management business services also prefer offshore merchant accounts as these prove to be more secure and discrete when compared to domestic financial account providers.
Other businesses that have high tax rates in the domestic market may opt for offshore merchant accounts as these international markets have tax free investment offers.
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