Offshore Merchant Account

In today’s world, e-commerce is a very popular way of doing business, thanks to innovative technological advancement. The use of merchant accounts make online payments secure and simple, due to merchant account facilities that are offered by banks or financial institutions that accept and process card transactions on behalf of merchants and corporate entities so that card payments of a specific card brand, example Visa, can be made online. The provision of merchant accounts by banks is a form of credit that is extended to businesses which facilitates the buying and selling goods and services.

Offshore merchant accounts follow the same concept, except that in this case the merchant account is provided by an offshore bank itself. Although not every offshore bank may provide offshore merchant accounts, this service can easily be facilitated by any onshore bank that has the capacity of providing offshore services and regular merchant accounts.

Setting up an offshore merchant account can be done by going through the necessary procedures which are generally fast and simple. However, opening an offshore merchant account will be facilitated easier by forming an offshore company rather than trying to do so with a regular local company since moving vast amounts of assets offshore through regular means can be confusing and complicated. Although many businessmen are uncomfortable and unfamiliar with transferring their assets offshore, owning an offshore company already “automatically” grants access to offshore banking once the offshore bank’s requirements for offshore account opening are satisfied. Moreover, going offshore offers the benefits of reduced tax liabilities, increased asset protection and unlimited access to international banking facilities and services for doing business worldwide. Two major advantages that are presented by offshore merchant accounts include the privacy that offshore banking provides and the possibility of holding such accounts in multiple currencies, which allows businesses to quote prices and customers to pay directly in different currencies such as in Euros, British Pounds and American Dollars. This increases the simplicity of performing business online and helps to provide services and online payment facilities that are customer and user friendly.

With the advent of e-business, companies are better able to maximize their sales by gaining access to an international market. Businesses that are unable to provide online payment services risk losing immediate sales, high volumes of sales and quick turnovers, which the establishment of an offshore merchant account can prevent by providing customers with a secure means of placing orders and making payments online. Setting up an offshore merchant account can be explored along with the range of services that offshore banks provide such as debit and credit cards, investment accounts, money market funds, insurance schemes and trust services that enhance the quality, level and volume of business that can be undertaken by any individual or corporate entity.

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