Nature of an offshore merchant account

Off shore merchant account

Nature of an offshore merchant account

If you are running a business that involves credit card payments from international customers then an off shore merchant account is mandatory for you. You can only set up an off shore merchant account with the assistance of an off shore merchant account provider.

It is worth mentioning in this regard that off shore merchant account providers charge a hefty amount of fee for their services. It varies from one provider to another but often depends on the kind of services you are looking for. In terms of f eatures, off shore merchant accounts provide you simplicity in operation, general asset protection and minimized taxation liability.

Fees and charges of an offshore merchant account

The fees and charges of an off shore merchant account consists of transaction fee; discount rate, installation fee, monthly minimum fees and charge back fees. In general, discount rate is calculated on the basis of the percentage of each transaction that is paid to that merchant account provider.

On the other hand, transaction fee can be termed as a flat rate that a merchant account provider charges for the processing of each transaction. In case if the merchant is not able to achieve transaction fees and discount rate as set in the original merchant application then monthly minimum fees are levied on the merchant account. In some cases, a merchant account provider also charges reserve fees. This normally happens if the credit history of the merchant is not up to the mark. By charging reserve fees, merchant account providers protect themselves from any possible future losses.

Research for an offshore merchant account

you select a merchant account provider, it is recommended that you research the market first. By doing this, chances of you getting a brilliant deal for setting up an off shore merchant account increases. Only choose that merchant account provider who suits your business needs. It has been noticed that merchant account providers are more than willing to answer your queries if you have any confusion. Taking into account what is at stake for you financially, it is advisable that you clear up all your queries.

Submitting documents for an offshore merchant account

The main benefit of off shore merchant account is that it gives business owners an option to accept credit card payments in a global arena. But for that to happen, you have to submit number of documents and particulars to the merchant account provider. These documents are quite mandatory in terms of setting up an off shore merchant account.

In an ideal scenario, off shore merchant account provider needs documents such as identity proof, investment resources and last but not the least references from merchant’s banker. You also need to submit a clear notarized copy of one of the documents to the merchant account provider that has your photograph attached. It can be your passport or a driving license.

Off shore merchant account can be set up in a matter of few hours. However, it can take more time if you have not submitted any document. Therefore, if you want to start accepting payment from your international clients immediately, make sure that you submit the completed documents on time.