You may consider hiring an offshore payment processor if you have a growing business and aspire to expand globally. By acquiring offshore accounts, you can accept diverse credit card payments, simplify processing, and mitigate the risks of chargebacks and fraudulent transactions.
However, before making any decisions, it is crucial to clearly understand offshore merchant account services, their importance, and how to choose the correct merchant account for your business. Shark processing is here to help.
An offshore merchant account is a type of bank account specifically designed for businesses outside their home country. It allows merchants to accept and process payments in foreign currencies, typically through online transactions.
Offshore bank accounts offer benefits such as lower taxes, increased privacy, and expanded global reach. They are commonly used by international e-commerce businesses or companies seeking to access international markets.
High-risk offshore merchant accounts are accounts in offshore banks specifically tailored for the “high-risk” industry. Businesses that serve global customers and accept payments in multiple currencies typically need an offshore merchant account.
International offshore merchant accounts understand the unique challenges of “high-risk” businesses, i.e., high chances of chargebacks, frauds, and other legal ambiguities. They offer high-risk merchants access to specialized payment processing services that allow higher processing volumes.
Offshore payment processors typically provide these high-risk merchant accounts in a foreign country. They offer online businesses a secure payment gateway, thus minimizing the risks associated with high-risk businesses.
High-risk businesses are those businesses that are highly likely to experience financial losses and chargebacks. These businesses primarily operate online and serve customers worldwide. These merchants face a higher probability of transaction cancellations, product returns, and customer refund requests. A business operating in a sector associated with legal ambiguities may be considered high-risk.
Offshore merchant accounts are specifically designed for businesses operating outside their home country. They enable businesses to accept and process payments in foreign currencies, cater to global customers, and provide benefits like lower taxes, increased privacy, and expanded market reach.
On the other hand, a domestic merchant account is meant for low-risk merchants and businesses operating within their native country and processing payments in the local currency.
When selecting a reputable offshore merchant account provider, consider their industry experience, reputation, and track record. Look for providers with solid security measures, compliance with regulations, and excellent customer support.
Compare fees and contract terms, ensuring transparency. Read reviews, seek recommendations, and assess their ability to handle your specific industry requirements. Conduct thorough research and due diligence to make an informed decision.
Due to their elevated risk factors, several industries are commonly classified as high-risk offshore merchants. These include:
However, the classification of high-risk industries may vary among different offshore merchant account providers.
To apply for an offshore merchant account, you typically need to provide the following documents:
The specific documents required may vary depending on the offshore merchant account provider and your business’s industry and location. Ensure you have these documents ready and in the required format for a smooth application process.
Businesses that are highly vulnerable to chargebacks and bad credit scores, i.e., businesses regarded as “High-risk,” such as casinos, gambling, or gaming, travel and tourism, telemarketing, pharmaceuticals and nutraceuticals, subscription services, adult entertainment, etc., may need to hire an offshore payment processor.
In addition, if a business operates using any of these lead acquisition processes, it may need to collaborate with offshore credit card processors:
To obtain fast offshore merchant account approval, ensure all required documentation is ready and accurately completed.
Provide clear and comprehensive information about your business, financials, and processing history. Respond promptly to any additional inquiries from the account provider and maintain open communication to expedite the approval process.
Shark Processing offers advanced high-risk offshore merchant account solutions at competitive fees. Their services cater specifically to businesses operating in high-risk industries, providing robust payment processing solutions while keeping fees affordable.
Consider contacting Shark Processing to explore their offerings and determine the best solution for your business.
Applying for a high-risk international merchant account may seem daunting, but a few tips can make it easier.
Research reputable providers specializing in high-risk industries.
Make sure you have all the necessary documents, such as business licenses, financial statements, processing history, and identification proofs, as mentioned by the service provider.
Check for guidelines as mentioned by the service provider. Complete the application accurately, provide detailed information about your business, and submit the required documents.
Respond promptly to any follow-up requests from the provider, and maintain open communication throughout the application process. This will ensure that your application process is smooth and hassle-free.
Shark Processing accepts clients from various industries, including but not limited to e-commerce, online gaming, adult entertainment, nutraceuticals, travel, subscription services, tech support, and online dating.
They specialize in providing high-risk merchant account solutions, making them an ideal choice for businesses operating in industries often deemed high-risk by traditional payment processors.
Offshore or international merchant accounts allow you to accept various payment types. They enable offshore credit card processing for your business and other offshore payment processing like debit card payments, net banking, UPI, etc. This typically includes major card networks like Visa, Mastercard, and American Express.
Additionally, you may accept alternative payment methods, such as e-wallets, digital currencies, and bank transfers, depending on the capabilities of your offshore merchant account provider. Check with your payment processor to ensure they support the specific payment methods you wish to accept.
Technically, any business which operates outside its home country is an offshore business. This means it serves customers residing in different parts of the world. Payment processors consider your business offshore based on factors such as your business entity’s location, your customers’ location, and the currency used for transactions. If these factors indicate that your business operates outside its home country, payment processors may classify it as an offshore business.
To find a reputable offshore merchant services provider, follow these steps:
Shark Processing has long been regarded as one of the most trustworthy offshore processing service providers. With us, you can be assured of receiving secured payment gateways and a high monthly processing volume.
Offshore merchant accounts can find payment processors by researching specialized offshore payment processing agencies. They look for providers experienced in serving offshore businesses and catering to high-risk industries.
Offshore businesses can enhance security in processing online payments through several measures:
By implementing these security measures, offshore businesses can significantly reduce the risk of security breaches and protect both their own data and their customers’ sensitive information during online payment processing.
Yes, at Shark Processing, we try to accommodate clients from different parts of the world. We offer our offshore credit card processing services for Non-US clients. We pride ourselves in our excellent customer service that would help you with all the answers you need about your inquiries about our services and offerings for non-US clients.
When choosing an offshore merchant account provider, consider the following:
To increase your offshore merchant account threshold, you must communicate with your account provider and demonstrate a track record of responsible and successful payment processing.
Provide evidence of your business’s financial stability, low chargeback rates, and regulation compliance. This can help build trust and credibility, leading to potential threshold increases over time.
Approval for high-risk merchant services can take time. The approval process involves risk assessment by the account provider. Service providers will evaluate your start-up on factors such as industry type, business model, credit history, and compliance requirements. Thus, it can be a few weeks before you get a decision from the high-risk merchant service provider.
To determine if your offshore merchant account is high or low risk, consider factors such as your industry classification, chargeback rates, compliance history, and financial stability. You recommend contacting your account provider and discussing these factors to clarify the risk level assigned to your account.
An Offshore account has a monthly volume limit to ensure risk mitigation and regulation compliance. By imposing a limit, the account provider can monitor and manage potential risks associated with high transaction volumes, helping maintain the stability and security of the account and the overall payment processing system.