Will An Offshore Merchant Account Benefit Your Business?
A merchant account offshore is simply payment processing with an acquiring bank located
in a territory outside of a companys original incorporation jurisdiction. As an example, lets say a company is registered as a corporation in the United States. The company establishes a payment processing account in Europe. The European account is considered an merchant account offshore for the American company because the acquiring bank is located in the EU, not the United States. Financial considerations are the most compelling reason for a company to establish a merchant account offshore. The bottom line for a offshore merchant offshore is saving money. For companies with global operations, an offshore merchant account reduces operating costs by decreasing payment processing expenses.Payment processing interchange rates vary throughout the world. For an American company with customers located outside of the US, it is frequently less expensive to process transactions through an offshore merchant account located in the EU than it is to process those same transactions through an American acquiring bank. Interchange rates are lower than in Europe than in the US. Cross border payment processing surcharges can substantially drive up payment processing fees. So, if a company processes European transactions through an offshore merchant account with a European acquiring bank, payment processing surcharges for cross-border transactions can be vastly reduced.
In addition, many international companies maintain multi-currency accounts and attempt to minimize foreign exchange rates. Settlement of multicurrency transactions into an offshore merchant account lets the company use the settlement funds for operational expenses in local jurisdictions, therefore, avoiding unnecessary foreign exchange costs. Companies classified as a high risk account also discover it is beneficial to set up an offshore merchant account. When a company is placed in merchant high risk category, it makes sound financial sense to investigate a merchant account offshore to take advantage of lower rates and more favorable business conditions.
What makes a merchant high risk? Companies are placed in high risk merchant categories for many reasons, but the most common cause is industry type. For example, companies selling adult entertainment online are automatically placed in the merchant high risk category. But, the degree to which an adult merchant account is considered high risk has much to do with the territory in which the acquiring bank is located. For example, European acquiring banks have a greater affinity for adult merchant accounts than do banks in other parts of the world. In general, Europeans have a more relaxed approach to adult entertainment. Therefore, European banks, particularly those in certain EU countries, are more open-minded about adult merchant accounts than are banks located in other parts of the world.
As a result, businesses that require adult merchant accounts frequently opt to establish payment processing European banks. If a company demonstrates the ability to properly manage a high risk account and has the payment processing history to prove competence, banks are quite open to accepting an application and offering extremely aggressive rates to get the business. Applying for an adult merchant account with a European bank is straight-forward and easy. Standard application forms are submitted along with due diligence documents that enable the bank to underwrite the business. Once approved, companies can process as much volume as desired. In fact, high volume payment processing is preferred and the higher the volume, the lower the rates.
by: Tina Brandon Check Cashing Payday Advance- Swift Cash When Your Payday Too Far Online Business Cards – Fastest & Custom Business Printing Services Teri And Sidbi To Boost Chandigarh-mohali-panchkula Engineering Cluster Supplier, Exporter, Trader, Graisse, Mamelon, Fabricant, Exportateur, Fournisseur, Commercant. World Wide Supplier Lombardini Diesel Engine & Their Parts Looking For The Best Place To Find Cisco Engineers Reverse Telephone Number Look Up For Business Making Instant Business Cards With Your Office Printer The Benefits Of Air Mattresses The Benefits Of Digital Scales Why You Need Good Business Credit Exclusive Black Friday Section Launched At Cheapdeals101.com Opportunities Galore For Indian Smes In The Defence Sector