Offshore merchant accounts are offered by banks located offshore, i.e. reside in a different country than the merchant. This fact alone usually creates business opportunities which do not exist in domestic merchant accounts. Higher levels of flexibility, regulatory and financial, are usually embedded within these offshore merchant accounts.
If you are a new business, perceived to be a “high risk” merchant, engaged in activities which are regulatory challenged, need multi currency processing, seek privacy or possible tax savings, offshore credit card processing might be the solution for you.
Though most offshore merchant account providers are usually less strict on the business model, some may require establishing an offshore company and/or opening offshore bank accounts prior to enabling offshore credit card processing. Those who do will usually help you finalize these procedures.
When opening an offshore merchant account one should think ahead of the most convenient way to withdraw the funds deposited into the offshore bank accounts. Some offshore providers are able to remit the funds into alternative payment solutions, such as PayPal and prepaid debit cards.
Look into International merchant account and high risk credit card processing prior to making a final decision.