What is an Offshore merchant account?

An offshore merchant account is simply a merchant account set up with a foreign bank where local taxes are exempt. An offshore company must be established in order for the offshore merchant account to be opened. Offshore accounts are often preferred by merchants seeking a high risk merchant account.

Why might I consider opening an offshore merchant account?

Doing business over the Internet means that you are attracting customers worldwide. An offshore merchant account is often times easier to establish than a local merchant account as there may be less restrictions imposed by either the offshore merchant bank as well as there being less government regulations imposed on the merchant's business. Here at Instabill, we often see merchants get approved for their merchant account faster than they would if they applied locally. And, as mentioned above, more often than not, the online merchant is paying significantly less taxes on his Internet-based business operations.

Why are Offshore Merchant Accounts considered High Risk?

Whenever a credit card transaction is processed by a bank and the customer is not present, at the time of the transaction, the bank views the transactions as high risk. Accepting credit cards over the Internet is a card not present transaction, (also known as CNP). These Internet credit card transactions are therefore high risk because the merchant is not able to see the customer in front of him, receive the card in hand, watch the customer sign on the credit card receipt, and check or match the signature on the receipt with the signature on the back of the credit card. When you add foreign (customer) cards to the equation, a foreign bank processing the Internet credit card transaction and finally, the transaction being an impulse purchase with an online pharmacy or a betting website the transaction type will always be high risk in nature.

What are the risks with establishing an offshore merchant account?

Having set up thousands of merchants with their own offshore merchant account, Instabill advises its' clients with the right offshore merchant account based on the client's needs and wants.

Instabill does not recommend entering into an offshore merchant account agreement with an offshore bank that has not been processing ecommerce transactions and issuing online merchant accounts for at least 2 years.

Instabill does not recommend entering into an offshore merchant account agreement with an offshore bank in a country that is at war. It sounds rudimentary, but often times is overlooked!

Instabill recommends that every Internet merchant spends the time to read the contract, and to abide by the terms of the contract. Again, this is basic stuff, but time and time again merchants often make the mistake, they look at the discount rate they are being charged, and when they will be paid out, and then simply sign the contract.

Instabill recommends that all merchants do seek tax advise from an International tax advisor, this way the merchant is covering all bases, and leaving no stones un-turned!

Instabill advises that you manage the merchant account effectively, make sure you are using the merchant account so that it is truly saving you money. Use the merchant account wisely, keep a close, watchful eye on the funds you process, and manage your processing funds, use the online banking facility available. And use Instabill to ask questions about your merchant account. We don't have all the answers, but, after 10 years of facilitating merchant accounts, we have a lot of the answers available at our finger tips...

What are the benefits of establishing an offshore merchant account?

• Tax exempt merchant accounts
• Diversity - have you not learned not to put all your eggs in one basket yet?
• High risk merchants and start up businesses have a greater chance of being accepted! (Internet pharmacies, payday loan, travel, Adult and Internet Gambling)
• merchant account applications approved within 48-72 hours
• Less documentation required to facilitate the merchant account
• No processing caps or monthly sales volume limits on your merchant account
• Won't be shut down after 30 / 60 days of processing. 1) offshore banks do the proper account investigation and due diligence prior to issuing a merchant account, whereas many local banks issue a merchant account, then shut the merchant down once they understand what it is he or she is selling.
• Do not need to have 1 or 2 years trading history in order to obtain a merchant account
• Higher merchant account chargeback threshold - 2% with Visa Worldwide
• Did we mention tax exempt?

How do I open an offshore merchant account?

No business is complete without a merchant account, as it allows acceptance of credit cards. An offshore merchant account grants easy access to merchants along with economical advantages, offshore credit card processing, reduced taxes and is a cost effective solution. Business owners everywhere now prefer high risk offshore merchant accounts over the domestic merchant account channel for its many advantages. You too can take advantage?

What are the general Rates for that offshore Merchants pay for their credit card processing accounts?

Offshore merchant account rates are assessed on a case by case basis. Offshore merchants with high monthly sales turnover in excess of $1 million generally pay between 3-4% for their merchant account, whilst start up offshore merchants and, those offshore merchants with low monthly sales turnover (less than $50,000 per month) generally receive rate offerings between 4-5%.

What is the usual timeframe from when I submit my merchant account application to actually receiving a merchant account approval?

Instabill generally receives an answer from one of its' merchant acquiring bank providers within 3 working days. Upon receiving a merchant account approval notice an Instabill Account Manager communicates all the credit card processing terms and conditions of the bank to the merchant. If the merchant accepts the offer, a merchant account contract is emailed to the merchant for them to sign and return the contract back to Instabill. Live processing can usually start 24-48 hours later.

Signup for an Offshore Merchant Account today!

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Applying and processing for a new merchant account is easy and takes a very short time. Send us your request by completing the application below.