Why offshore service providers are ready to onboard high risk merchants?
The answer is quite evident. Profit is the prime reason that an offshore processor will provide a merchant account for high risk industry. There is always certain level of risk involved when you cater to the requirements of high risk industry merchants. The Offshore processors charge high transaction fees and other charges to ensure their profit. They cover the risk associated with integration of high risk merchant account. For this they earn from rolling reserve, hold period and other charges.
What are the various limits set up by offshore processors on a merchant account?
Offshore processors impose the maximum ticket volume and maximum monthly transaction limit. These service processor also impose minimum transaction volumes for their own financial safety. While signing the agreement a merchant gives his consent to maintain the flow of transactions in the account.
The rolling reserve is also kept higher in comparison with domestic acquirers to minimise the financial losses. In most of the cases rolling reserve is kept between 10% and 18%. The hold period or arrear is also longer in comparison with US based banks.
What are the different fees and charges applied on a Merchant account by offshore service providers?
If we start from the application process, usually there is provision of an application fee or set up charge. Once the application has been submitted, the onboarding process starts. TDR (Transaction Discount Rate) and MDR (Merchant Discount Rate) are important factors. Monthly & fixed transaction fees, chargeback fees, refund fees etc are also taken into consideration. A merchant must carefully go through the rules, regulations, terms and conditions before signing up. This is important to understand when you work with an offshore service provider. A merchant should negotiate properly to ensure that he pays least of the mentioned fees and charges.
Out of these mentioned charges, the most dreaded one is Chargeback penalty. If the customer is not satisfied with good/services, he may report a chargeback. Merchants also have some rights to save themselves from the chargeback penalty. Excessive chargeback can lead to shut down your merchant account. We have also received queries that can someone go to jail for a chargeback? If you abide by law and follow work ethics, no need to worry. It is advised to be careful about hidden charges on a merchant account.
How and where to find an Offshore merchant account provider?
The moment you enter the E-Commerce or online market you will find plenty of service providers. They all come with lucrative offers and attractive services. These processes are ready to onboard high risk merchants because they ensure their own profit by charging high fees. The above question should be moulded in a better manner. How and where to find the best suitable Offshore merchant account provider for your specific high risk business type? Quadrapay.com can be one point solution to this question. The expert team of Quadrapay has comprehensively evaluated the best in class service providers. We have figured out processors with the most competitive pricing. We have resolved to help the high risk merchants with our specifically tailored support solutions. Any merchant can easily enroll with us by filling the short and easy application form available online on our website.
The team of Quadrapay.com excels in helping you find best processors and service providers for your high risk merchant account. We provide serivces globally in USA, UK, Canada, Australia, Europe and Asia. If you are facing any trouble in getting the account, we are ready to help you. You can sign up the application form at www.quadrapay.com or send us a query on [email protected]. You can also call us on our 24*7 helpline +1 6318321773.