A high risk merchant account is often an offshore merchant account. In other words, we use an international bank account to process credit cards and receive the product. This way you can generate income on your offshore business account. Additionally, credit card merchant account providers can label almost anyone and almost any organization as a “high risk” business. So the processing companies ask you to create a high-risk credit card merchant account.
Credit card processing companies do this at the request stage for a number of reasons. For example, they may classify a business with a high repayment rate as high risk. In addition, we have seen them refuse requests because the requester or the type of business does not meet strict underwriting criteria. If this is the case for you, this could make a high-risk credit card processing company the answer.
Offshore Bank Merchant Account Rate
High risk traders often pay high risk rates. However, we have found that we are reducing the 98% of suppliers in processing costs compared to what they currently know. This is the case, whether they have low, medium or high risk needs. Be careful, as many providers will automatically approve applicants with unfair contracts and exorbitant rates. So always check your contract and see if there are standards to minimize transaction rates. For example, larger reserves, working reserve agreements and other types of risk reduction can help an applicant obtain the best possible rates.
Do I Need An Offshore Bank Account?
Merchant service providers may label a business as high risk because of its industry. An owner can have bad credit. In addition, a foreign company with transactions in the United States may own the business. Alternatively, the product or service could be illegal under certain local, regional or federal laws. Even questionable marketing or sales tactics can lead to decline. So, for many businesses, an offshore merchant account is the only option for dealing with credit cards online. To get one, most merchants require that you have a foreign bank account. This means creating both an offshore company and an offshore bank account.
Companies Needing An Offshore Merchant Account
Most people think that high risk merchant processing accounts are only for casinos or online pharmacies. However, with current credit guidelines and financial account requirements, many trusted brands and online businesses pose “high risk”. They therefore need a specialized processor for credit cards. Here are the types of businesses that often need high-risk merchant accounts.
Naturally, if you have a bank account and an offshore merchant account, you must maintain tax compliance. For example, in the United States, the United Kingdom, Canada, Australia and many other countries, world income is taxed. So be sure to keep good tax advice from a licensed tax professional.
How To Set Up A High Risk Merchant Account
After reading this, do you think a high risk offshore merchant account is right for you? If so, please use the phone numbers or the consultation form on this page. When you do, you can speak to a professional who can give you more information.