If you’re looking to expand your business in the global realm but is constantly pestered by the thought of how to process your payments, then an offshore merchant account is just for you. You might think, “I’m residing in the US, why would I choose obtaining an offshore merchant account over a domestic one?” Contrary to popular belief, the former is actually easier to acquire compared to the latter.
Domestic accounts tend to operate under strict rules and regulations which makes them hard to acquire for small and new e-commerce merchants. In return, fewer and fewer businesses tend to lean towards domestic merchant accounts, seeing how they can greatly benefit from offshore merchant accounts.
Being able to accept multiple currencies is also a feature of offshore accounts that make them viable to merchants. Giving merchants the advantage to deal with clients from all over the world and a chance to evolve and spread out.
The thing with domestic merchant accounts is that they solely work with USD and the domestic currency, making it exclusive and unavailable for the rest of the world. In this way, offshore accounts are proved to be more convenient, enabling customers to pay without having to worry about currency conversion.
Aside from being very easy to acquire and apply for, offshore merchant accounts help you save much more money as compared to a domestic account. Generally located in a different country, credit card processing fees are subjec to low taxes or at times, even none at all. Now, who wouldn’t want that, right? Aside from helping you with payment processing, these offshore accounts help you reap huge tax savings.
Another advantage of an offshore merchant account is its ability to extend more flexibility to US customers. Compared to its counter part, offshore merchant accounts and credit card processors rarely have tough competitors with high prices and rigid guidelines. This would strip them away the need to strive being elite, making them more available to e-Commerce merchants, experienced or not.
The concept of an offshore merchant account is to actually make our lives a bit easier with its better rates, flexibility to business models, higher chargeback thresholds, multi-currency options, zero taxation, better protection against currency fluctuations and availability to various tyoes of credit cards. So whether you’re an existing e-Commerce merchant or new to the industry, you don’t have to worry about your payment processing. With an offshore account, you are sure to start selling and earning in no time.