If you're a small business owner, there's a good chance that you've thought about opening up an offshore merchant account. Why? Because doing so could make things simpler for your business by helping you avoid hidden fees and lower rates than those offered by domestic merchant accounts. However, there are many reasons why you might not want to open an offshore merchant account. So if you're unsure about whether or not this is the right move for your company, read on!
- Why opening an offshore merchant account is different than opening a domestic merchant account
There are a few key differences between opening an offshore merchant account and opening a domestic one. First, there are regulations in place for offshore banks that don't exist in the United States. This means that you will need to do your research before choosing an institution, especially if you plan on accepting payments from international customers. Second, fees will vary widely depending on where your business is based. Check out our guide to international merchant accounts here!
Thirdly (and this might sound obvious), deposit times will be slower than they would be domestic because of how far away these banks may be geographically from each other–and their customers! Lastly but not lastly (did we just make up words?), customer service can vary greatly depending on where the bank is located as well as how big it is compared with others nearby–so keep this in mind when making decisions about which company's services work best for yours!
- When should you open an offshore merchant account?
The best time to open an offshore merchant account is when you're ready to start accepting payments online. You can also open one if you want to accept international payments, expand your business internationally, reduce credit card processing fees and avoid fraud and chargebacks.
If your company has been around for a while but has never accepted online payments before or only accepts them from domestic customers (those who live within the same country), then this is likely the right time for you as well.
- How do you know if you need an offshore merchant account?
If you are selling internationally, if your customers have a foreign address, or if you need to accept international payments, then an offshore merchant account may be right for you.
If a customer lives in another time zone than yours and wants to pay at night when it's still daytime for them, that can be tricky with a domestic account (which only supports local bank transfers). With an offshore merchant account, however, there's no such issue: since these accounts are based in different countries than where your business is located–and therefore use different currencies–they're able to process payments from anywhere without worrying about time zones or other complications like those mentioned above.
Open your offshore merchant account when it is most convenient for your business needs.
First, you'll want to consider the time zone of the processor. If you operate a business that caters to customers in different time zones, it may be more convenient for you if your merchant account is based in one of those areas. For example, if most of your customers are located in North America and Europe but not Asia (which has its own set of rules), then it might be better to go with a provider that's closer to those markets.
Secondly, consider where the processor is based geographically–this can affect how quickly funds are deposited into or withdrawn from an account as well as how long it takes for disputes and chargebacks to be processed by their customer support team. Thirdly: cost! Some offshore processors offer lower rates than others; however this doesn't necessarily mean they're better suited for small businesses or startups because some providers offer additional features like fraud protection at no extra cost while others charge extra fees on top of their base rate depending on what type(s) of transactions need protecting against fraudsters (e-commerce vs brick & mortar businesses). Finally…the last thing worth considering when choosing an offshore merchant account provider would probably be what kind(s) services does each company provide? Some providers specialize only
in e-commerce processing while others also offer services such as credit card acceptance hardware installation/setup/maintenance along with POS systems integration options too.”
Conclusion
We hope this article has helped you understand when is the best time to open an offshore merchant account. The most important thing is to make sure that your business needs are met by choosing the right type of account for your company's needs. If you have any questions about opening an offshore merchant account or need help finding one, please contact us today!
