Fortunately, a high-risk merchant account is another option for accepting credit card purchases while maintaining access to funds. Banks may be hesitant to approve your company’s application for a regular merchant account if you run a firm that involves transactions with international suppliers. It is especially true if global sales are your company’s principal source of revenue.
The most crucial argument for considering a high risk offshore merchant account is that it makes it easier for banks to trust you. It makes it easier for them to evaluate your organization’s business potential and chance and endorse your application for a standard shipper account.
A great danger Offshore merchant accounts are meant for organizations with a history of credit difficulties and high-risk transactions. In other words, it is intended for those who have problems obtaining a regular merchant account. If you need to accept foreign orders but cannot obtain a bank-approved merchant account, this may be the ideal answer for you.
How To Apply For A High-Risk Offshore Merchant Account?
Begin receiving payments right away by completing the quick online application. To expedite the procedure, you must provide the following documents:
- A legitimate official distinguishing proof report, like a driver’s permit
- A canceled check
- Three months’ worth of bank statements
- A Social Security Number (SSN) or an Employer Identification Number (EIN)
- Chargebacks must be less than 2%.
In most circumstances, it is acceptable if the website has not yet been released as long as there is a working site in a development environment.
You can apply for a high-risk merchant account in three ways:
- Unsecured credit card processing:
This is the most cost-effective alternative typically offered by young businesses with minimal track records. You’ll have access to all of the items accessible with a conventional credit card merchant account, but no collateral is required.
- Personal guarantee:
A personal guarantee from the company’s owners or officials is required for this application form. Established firms with an excellent credit history will be more ready to accept this form of account from the bank.
- Secure credit card processing:
Secure credit card processing is the most expensive alternative and demands a security deposit to access credit card processing services. As you can see, there are various ways to obtain a high-risk merchant account. If your company is struggling with foreign sales, it may be time to examine one of these choices!
How do high-risk merchant accounts work?
A high-risk merchant account is not a distinct type because the same commercial bank services it as your ordinary account. The primary distinction is that a high-risk merchant account will have some restrictions, such as lower credit limits and fewer restrictions on the types of transactions you can execute.
The first crucial thing to realize about high-risk accounts is that they necessitate greater accountability. If you ignore them, you’ll lose the ability to accept credit card payments and access funds from your balance.
To have a high-risk account, you must be aware of your company’s profitability and increase equity in your account by ensuring that the value of any outstanding balances is greater than or equal to the value of any due obligations. Apply for a high-risk merchant account immediately if you want to continue accepting credit card payments but don’t want to cope with banks’ extra scrutiny and conditions.
Advantages of an Offshore Merchant Account
If you are a worldwide dealer, having a neighborhood bank in the market where your client base is present can be advantageous. It allows you to take payments without dealing with currency changes, which decreases your tax liability and the danger of fraud on your clients’ credit cards. International banks often allow for higher processing volumes than their US counterparts. Because they have more customers, they may process a more significant number of transactions for each customer’s card at the same time.
Diversifying your merchant accounts may help you avoid becoming overly reliant on a single country’s culture or ideas. Offshore merchant accounts are ideal for merchants who cannot open a domestic merchant account due to the nature of their firm. Different countries regulate the banking industry differently, making it easier for banks and processors to run high-risk businesses. As a result, high-risk companies now have more incredible possibilities for obtaining overseas financing.
It is critical to remember that one can use offshore merchant accounts for various objectives. Adult entertainment and casinos, for example, are likely to be excellent candidates for this type of account.
The key takeaways are that you have to locate a high-risk merchant account supplier who fulfills your requirements and apply for the account. It is vital to remember that if your firm is worldwide, you will most likely have an easier time establishing a high-risk merchant account. This is because different countries have varying definitions of a high-risk corporation. Your association should agree with all state and government rules and guidelines to be qualified for a high-risk trader account.