Some businesses have decided to open an offshore account. Some do it to reduce their current tax liability while others use it to set up a new business which means it can be used for legitimate and illegitimate business.
So should you open an offshore merchant account? You should probably weigh first the pros and cons before deciding to do so.
One thing you should know about offshore merchant accounts is that they are high risk. The reason is because of the increasing incidents of fraud around the world.
What is even worse than that is the fact that it is hard to confirm if a sale was made or not.
To curb such incidents which give offshore merchant accounts a bad name, it takes quite awhile before your application can be approved. The bank you have chosen to open the account with will require you to present your proof of identity, source of investment, references from merchants and the name of your current bank.
You don’t just fax a copy of some of the other documents like your driver’s license, social security number of passport but you have to photocopy them and have these notarized.
But despite the red tape and the problems, there are pros to opening an offshore merchant account.
Transactions made through the offshore account are in US dollars so you get the same amount regardless of the exchange rate.
You are also able to process credit or debit card transactions, receive automated billing, use a secure payment gateway and virtual terminal that approves transactions quickly.
Believe it or not, the opening balance of an offshore merchant account is much lower than some banks. Some don’t even ask for a security deposit which some require to become one of their clients.
The processing time for an actual merchant account is about a week. If you want to see how much you have, you can assess this at any time by logging in your ID using your computer.
Perhaps the best part about an online merchant account is the fact that you can still accept payments from customers even if the site is down. This is because of backup generators and enhanced security features which are designed to give you and your customer total shopping convenience round the clock.
The offshore merchant account could be exactly what you need if you want to reach out to customers from different countries. Safety and security are just some of the things you can look forward to when you decide to open one today.
With that, forget the connotation that you are breaking the law if you decide to open an offshore merchant account. It is simply a bank account which you opened in another country and the best part is that you don’t have to be one of the richest people in the world to open one.
You just have to be someone who is willing to engage in online business because this is the perfect venue for those who want to make money using the web.
To get started, browse through the web and look through the various offshore banks. Find out how much is the initial deposit to open a merchant account, how long they have been in business, do you have to pay any taxes, what are their security measures and other pertinent details before signing up with them.