Offshore credit card processing is a type of payment processing that occurs when a business uses an international processor to handle its online and offline payments.
Tapping into the global economy is now a crucial selling point for many businesses and opening offshore accounts can help them do this. This type of credit card processing system means you do not need any physical presence in the country where your business operates.
For example, if you were based in the United States but wanted to expand into Canada, you would need to establish a physical base there. However, you can avoid this requirement by outsourcing your payments to a specialist firm that deals with this type of business and begin accepting global payments immediately.
Which Sectors Rely on Offshore Processing
Offshore credit card processing is beneficial for businesses with large amounts of international traffic and sales.
Businesses that rely entirely on offshore credit card processing are usually high-risk merchants, such as online casinos and pharmaceuticals, but may also include tobacco sales and gambling establishments.
Offshore credit card processors work with businesses that sell products online to help them comply with legal requirements in different countries and regions.
More sectors that need offshore processing include:
- Credit Card Processing
- Travel Agencies
Generally, any business must have an offshore merchant account before taking payments from customers outside their country or region.
The Perks of Working with an Offshore Payment Processor
1. More favourable rates.
Most offshore providers offer rates that are much lower than domestic providers. It’s not uncommon for offshore rates to be half of what you’re paying now for domestic processing. As a result, you’ll see a significant net gain on every transaction when you switch over.
2. No tax headaches.
The IRS requires you to send sales tax remittances each month for all transactions processed domestically, even if you don’t know whether the sale was taxable or not. Using an offshore provider can help you avoid these headaches by sidestepping domestic transactions altogether and only accepting payments from overseas banks and institutions.
3. Reliable service and support.
Although domestic processors are improving their service levels and response times, it’s still difficult to reach them during certain hours of the day or week because they probably don’t want you to call them too often! Offshore providers usually provide 24-hour support via email and telephone.
Some legitimate companies offer offshore credit card processing and will provide you with excellent services–others are knock-offs. It is important to research them carefully before signing up for their services, so you know what to expect from them.
Author Bio:- Blair Thomas has been a music producer, bouncer, screenwriter, and for over a decade, the proud Co-Founder of eMerchantBroker, the highest-rated provider of high-risk merchant accounts in the country. He has climbed in the Himalayas, survived a hurricane, and lived on a gold mine in the Yukon. He currently calls Thailand his home with a lifetime collection of his favourite books.