Offshore merchant accounts are essential for businesses that need to accept credit card payments on an international level. Such accounts can be set up with the help of an offshore merchant account provider or processor. Offshore merchant account providers charge a fee for their services to facilitate acceptance of international credit cards presented by their clients and also verify information provided by customers. Fees charged by various providers vary from company to company and also depend on type of services required. Offshore merchant accounts offer several features such as reduced taxation liability, operation simplicity, general asset protection and other related features. best payment gateway for high risk businesss
Offshore merchant account fees and charges usually include discount rate, transaction fee, monthly minimum fees, charge back fees, reserve fees, and even equipment and installation fee in some cases. Discount rate is based on percentage of each transaction that is paid to that merchant account provider. Transaction fee is a flat rate that a merchant account provider charges for each transaction processed. Monthly minimum fees are levied on merchant account if merchants? discount rate and transaction fees are not able to achieve the monthly minimum amount that was specified on the original merchant application. Reserve fees are charged if merchants? credit history is questionable, which is done by setting up a reserve account. This feature protects the merchant account provider from any possible future losses. Chargeback fees are charged by a merchant account processor to pay for disputed charges where the customer had to be refunded charged amount.
It is always better for merchants to research the market to get good deals for setting up an offshore merchant account that fulfills their specific business requirements. Generally, merchant account providers do not hesitate to answer queries put up by business owners, considering financial risks involved. Merchants may be in a better position if they check out all charges associated with their offshore merchant account.