If you are an online merchant looking for a better way to accept credit card payments for your business, then an offshore merchant account may be just the solution you need. No business is complete without a merchant account as it allows business owners to process credit card transactions, but an offshore merchant account has many advantages.
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 and an acquiring bank that issues domestic accounts resides in the same country as the merchant.
For instance, a merchant living in Ohio, USA, could apply for an offshore merchant account with an acquiring bank in Mauritius or a domestic merchant account with an acquiring bank in Florida, USA.
Offshore Merchant Account Advantages
One of the major advantages of getting an offshore merchant account is also one of the major differences between an offshore and domestic merchant account, which is how easy it is for an offshore acquiring bank to approve a merchant account application. Offshore banks have fewer trading restrictions, making it easier for online merchants working in high risk industries—such as computer services, IT tech support, or penny auctions—to get an account.
Additional advantages of getting an offshore merchant account include:
- Offshore Credit Card Processing: By processing credit card transactions offshore, you can accept payments in multiple currencies.
- Low Taxes or No Taxes: With a merchant account in an offshore country, you’ll benefit from that jurisdiction’s tax requirements.
- No Transaction Volume Caps: Offshore acquiring banks generally do not put a cap on how many transactions you can process per month, allowing your business to maximize profits and reach its full potential.
With its many advantages, it is easy to see why an offshore merchant account is the right solution for any merchant looking to process credit card payments online.