You read a lot of stories about how difficult it is to get an offshore bank account. Well, opening a efficient,low cost, offshore merchant account 10 times more difficult. If you have a business that requires you to process your customers credit cards, you not only need an offshore company you need an offshore merchant account.You should already know that starting or moving your business offshore can offer significant tax benefits which is an added advantage.
To receivecomplete benefit from this offshore e-commerce opportunity, for tax optimization purposes, you need to set up an offshore corporation that you neither own nor control. This can be your platform for an international business which will have great tax benefits.
Know your offshore merchant account better:
The major concern that hits your mind while setting up a small online business is to save and protect it from fraudulent. A small sized e-commerce solution cannot afford to face deceit in the initial years of the business. Online frauds and scams are the bitter reality of the e-business world. Generally, new freshand inexperienced small businesses fall prey to these internet scammers. In this case, the offshore merchant account provider is the saviour who protects their clients from the online cheater.
You will have to pay higher rates in general:
Processing fees can be unpredictable when you process offshore. In fact, this is true for all costs involved including transactions fees, chargeback fees, and set up fees. You may be required to establish reserves before the processor will start transferring any funds to your account and if they are the anonymous type, you may never see those reserves again. Most of these offshore processors know that you may have no other choice and therefore take complete advantage of that.
Your chargeback rate :
When a credit card processor opens a new account, they view it as extending some level of credit to their new customer. This is because the processor is liable for any refunds demanded by your customers, called chargebacks, if you, the merchant, is unable or unwilling to pay.Offshore, the processor may be limited to withholding future transactions and closing the account. If the merchant is a high volume low dollar account they will obviously pay the chargeback. If they are a low volume high dollar account they may be unwilling to pay…and simply open a new account elsewhere. Most sophisticated merchants will run two or more merchant accounts for this reason.
Consider the best jurisdiction for your offshore company:
Setting up your company on some rock may be extremely easy,cheap, require no reporting, and cost nothing in taxes, but it may not be the best decision if you want to accept payments online.
Register a business and a bank account in your target jurisdiction:
To secure payment processing in another country, you must have a registered company in your jurisdiction of choice. If you are a European business owner and want to extend your businessto the US, you must have a registered company in any of the 50 US states. Also, you’ll need to ensure one of the officers of the business is American. But that’s not all! It’s necessary to have a bank account specifically for that registered business.
Nowadays, every online business has a global approach and also has the vast visibility that subsequently attracts customers around the world. Hence merchandising your goods globally sitting from your home country is a bad idea for any merchant for it cost more than your business setup. The first thing a retailer should do is having an offshore merchant account and using wisely to get more business from around the world and enhance the customer base.
Call iPayTotal now to get more details about offshore merchant account.