Offshore merchant accounts are popular because of multiple reasons. I will try to let you know about a few of the factors which makes these accounts extremely popular, especially among the high-risk merchants.
- They say yes when almost everyone says now. It is the key reason why a merchant in one country searches for a payment processor in a different country. The processor located in the other country may have another risk appetite. That means if a merchant is not getting a solution in its home country, he may approach a foreign country where a reliable processor may be interested in offering them a merchant account.
- Ease of transaction is also a factor. Whether you are using a domestic merchant account or an Offshore merchant account, you know that the transactions go through almost the same way. The customers will not realise that you are using an Offshore merchant account.
- Multi-currency gateway. Many local providers may offer only a single currency gateway that means they will accept payments only in their home currency. Since offshore merchant account providers provide services to international clients, they may offer multi-currencies gateway. With this, merchants can use dynamic currency conversion facility and show prices in customers local currency. It can genuinely help merchants in expanding their businesses globally.
- Higher monthly sales volume. Many domestic providers limit the account to 25,000 units every month. Whereas in the case of Offshore processors, this value can be multiple times. Large organisations usually prefer to work with processing companies that allowed them a high monthly sales limit. Sometimes Offshore provider may also provide a bigger maximum ticket size in comparison to a domestic provider.
- Tax saving. Although this might not be possible for all merchants, some may undoubtedly take tax benefit by using Offshore merchant account. If the merchant is located in a highly taxed country and establishes a business in a lower tax country, then there may be a possibility that he may save some taxes.
- They support high-risk industries. Many domestic providers say no to businesses from various industries including online gaming, gambling, betting, adult, forex, crypto, travel, remittances, pharmacy, herbal, weight loss, competition and pharmacy. These merchants can have better luck with Offshore processors.