To get a foreign merchant account you will have to apply with a psp that offers offshore mids. The application process is exactly the same as a domestic application. The only difference is that the merchant and PSP are located in different nations.
While applying for a foreign merchant account keep these factors in mind.
- Are they offering you a truly international solution. Sometimes the MIDS issued by foreign banks may not work with cards issued in your home country. Ask the PSP about the transaction success ratio.
- Check if you are working with a genuine PSP. You know that it will be hard to get your funds if you join hands with a dishonest PSP located in some foreign nation.
- Make sure you compare the rates. Most of the times offshore merchant account providers tend to ask for a much higher MDR in comparison to a domestic acquirer.
- Negotiate on rates and reserves. The PSP may ask you to agree for a fixed or rolling reserve. In most cases this is mandatory since you both are located in separate nations. However you as a merchant has the right to negotiate.
If you keep these factors in mind then it will be lot easier to identify the right foreign payment processing company for your business.