When it comes to creating a business, one of the most important decisions you have to make is where you will store your money. Whether or not you choose an offshore merchant account provider depends on how large your company is and what services they offer.
For small businesses that are just starting out, choosing an offshore merchant account provider can be a risky decision. However, these early decisions will determine the course of your company’s future.
This article will help you learn how to choose an offshore merchant account provider and why it is so important for your businesses.
What Is An Offshore Merchant Account?
An offshore merchant account is a type of merchant account that allows businesses to accept credit cards and other forms of electronic payment on websites and in brick-and-mortar locations.
These accounts are obtained through banks, online payment service providers, or issuing banks that have their own processing facilities. These facilities generally provide merchants with lower fees, easier processes, and better security than an in-house merchant account.
The Benefits Of Using An Offshore Merchant Account Provider
If your business deals with a large number of transactions or sells products online, you can save money by utilizing an offshore merchant account provider. They generally charge lower fees than their in-country counterparts due to the fact that they need to maintain fewer locations.
There is also less of a chance for fraud due to the greater security measures in place and easier refunds or chargebacks.
The experience and knowledge gained through being in business for many years also allows offshore merchant account providers to come up with new solutions that are tailored specifically to your individual needs. This can help your company increase its profits and reduce expenses by decreasing the amount of time and energy you must invest in order to get your business up and running.
Another benefit that comes with switching to an offshore merchant account provider is the additional security. Many providers have fraud prevention capabilities that allow them to quickly identify cases of suspicious activity and take preventative measures to stop them.
In-country providers can be slower to react and may not have the same resources or expertise that their offshore counterparts do. This means your customers’ information is less secure and you are more susceptible to fraud or theft.
How To Choose The Best Offshore Merchant Account Providers For Your Business Needs
In order to choose the best offshore merchant account provider for your business, you should first decide what is most important to you. For example, if low costs are most important, then a provider that has a per-transaction fee structure may be the best option for you. These fees will likely be lower than those charged by providers that utilize flat monthly rates.
Another option is to decide whether you want a provider that offers many different features or one that is extremely easy to use. If you want something simple, then an omnichannel merchant account provider should be your best fit. These providers allow you to accept all forms of payment with just one account, so it’s easy to manage all of your business payments from one place.
More options are available when you choose an offshore merchant account provider, so it’s important to choose wisely so that you don’t miss out on any benefits. If you need help choosing the best provider for your business, contact a credit card processing specialist today.
Pros and Cons of an Offshore Merchant Account Provider
Offshore merchant account providers also have some negative aspects that you should be aware of. As with any service or product, offshore merchant account providers are not perfect. However, many people feel that the pros outweigh the cons when it comes to these types of accounts.
Pros
- Lower Rates: One of the biggest reasons merchants choose an offshore merchant account provider is to save money on fees. As mentioned previously, in-country providers charge higher rates so offshore accounts are generally more affordable.
- Global Access: Offshore merchant account providers can accept transactions from anywhere in the world. This is not always true of smaller or local merchants who may only be able to accept payments domestically.
- More Options: Offshore merchant account providers offer more than just eCommerce features such as secure transactions and recurring billing. They also often provide mobile services and specialized payment solutions for certain industries, like tourism.
- Ample Support: Many offshore merchant account providers have support options that local businesses may not offer. You can find phone support, live chat options and even help from a staff member who can assist you with the account set-up process.
- Faster Setup: Since many offshore merchant account providers are located overseas, they don’t have to go through the same processing time as domestic businesses do. This means that it will take less time for them to complete your setup.
Cons
- Language Difficulties: While you may think that being able to speak another language would be a benefit, it can actually cause hindrances if the merchant account provider uses English as their default language. As American business owners, we use terms like “shipping” and “billing address” that may not be understood by someone who uses different terms.
- Delay in Processing: To let you know about important information such as any delays, you will need to speak with a member of the merchant account provider’s staff. Sounds like a good idea? Most people don’t always have time to stop and chat on the phone while they’re working. Although you can get in touch with many providers online, there will likely be times where you need to speak with them personally.
- Tax Reporting: If your business is based overseas and does not have a physical presence in the United States, then there are tax implications when accepting payments from American customers. You will need to report those payments to the Internal Revenue Service (IRS).
Conclusion: If you want to set up an offshore merchant account, it is crucial that you do the research needed. Businesses are different, and there is no such thing as one-size-fits-all when it comes to business needs or services.
Find a provider that has positive reviews, doesn’t charge hidden fees, and can meet your actual needs. It’s also a good idea to pick a provider with 24/7 customer support that allows you to get answers and help when you need it most.
Why Choose PayPound for Crypto Payments?
Below are the smart reasons to choose Paypound for Crypto payments:
• Huge network
• Quick and easy set-up
• Intuitive dashboard
• Secure transactions
• Great customer service
Contact us at
(+44) 800 832 1733
sales@paypound.ltd
