Offshore Merchant Account

Offshore Merchant Account Vs. Domestic Merchant Account

The major difference between an offshore merchant account and a domestic merchant account is simple. An acquiring bank that issues offshore accounts resides in offshore countries, while the banks issuing domestic accounts reside within your home country’s borders. For instance, if you are living in New York but want to set up an online store for international customers – whether based on location or language preference – then you would need to choose between applying with one of our qualifying acquiring banks located outside of America (Mauritius) or using one from inside the United States (New Jersey).

There are many factors that will determine what route best suits your needs: geographical proximity, the risk level of your business, banking regulations across different jurisdictions around the world, even currency exchange rates can be taken into consideration.

Offshore Merchant Account Benefits

If you’re an international merchant, it can be beneficial to have a local bank in the market where your customer base is located. This will allow you to accept payments directly without having any currency conversions that could take away from earnings while reducing tax liability and minimizing the risk of fraud on customers’ credit cards.

International banks tend to allow higher processing volumes than their US counterparts. This is because they have more customers and can process a larger amount of transactions for each customer’s card at one time.

Different regions of the world have different cultural standards regarding what products are appropriate for sale, so diversification of merchant accounts can ensure that you’re not reliant on one country’s culture or values.

Offshore merchant accounts are perfect for processing payments for merchants who can’t get a domestic merchant account due to the nature of their business.

The banking industry is regulated differently in different countries, which creates a favorable climate for banks and processors to work with high-risk businesses. As a result, there is more opportunity for high-risk companies to secure overseas banking.

It’s important to note that offshore merchant accounts have a wide range of applications. For instance, online businesses such as adult entertainment and casinos are likely the best candidates for this type of account.

The following example discusses how opening an offshore merchant account can be beneficial in certain aspects:

How to Qualify for an Offshore Merchant Account

Depending on what type of business you have, it may be essential to make sure your merchant account is an offshore merchant account. For example, if your company has an eCommerce component or accepts payments from outside the United States and Europe (especially in Germany), this category would apply.

However, not all merchants fall into these categories because even a small one could need such options for their own unique purposes, like accepting credit card transactions from customers overseas who live within other countries requiring higher fraud protection measures than those currently offered by traditional domestic banks today.