A merchant account is a type of account that is obtained from an acquiring bank, and it enables the account holder to accept and process online transactions. The primary reason for setting up an offshore merchant account is to benefit from a different jurisdiction’s favorable tax regime and stable economy.
Scope and features of an offshore merchant account
An offshore merchant is a merchant account that has been set up in an offshore location, thus facilitating online payment transactions in an overseas jurisdiction. Through offering offshore merchant account services to clients, individuals and companies are able to provide goods and services to an international client base.
Further to this, an offshore merchant account demonstrates the company’s reach to global markets, showing a wider business network that is solid and expanding. Customers are able to make payments using different currencies and from locations all across the globe, thus demonstrating the business entity’s position as a reliable and flexible payment processor.
An offshore merchant account enables the company to:
- Benefit from competitive and lower tax rates of different countries
- Offer credit and debit card payments in different locations
- Transact payments in a safe, secure and convenient manner
- Reduce risk of fraudulent activity
- Process payments instantly and efficiently
It is advised to enlist the services of a professional consultancy firm when acquiring an offshore merchant account to complete the entire procedure in a timely and efficient manner. Through the advice of experienced consultants, business entities are able to set up their merchant account in their desired offshore location.