Every year it is becoming more typical for online businesses to accept online payments. Most ISOs, processors, and sponsor banks, do not like risks. In most cases, they refuse to provide their services to businesses with restrictions, and that results in only a handful of providers. That provides online services, and finding them is not an easy task.
Ordinary Offshore Merchants
The industry type, online transactions, location, or merchant’s credit card record can influence their business. However, merchants having issues with these factors are considered to be online merchants.
Many merchants have restrictions in the online industry. No matter how strong the business they have and most of them may also assume that they do not have future options to accept online payments. But actually, they are suitable candidates for a credit card merchant account.
Some examples of offshore businesses are as follows.
- Online dating services.
- Telemarketing.
- Online Casinos.
- Cryptocurrencies.
- Collection industries.
- Internet services.
- Gems and other precious metals.
- Lead Generation Services.
- Software downloads.
- Telemarketing.
How Can You Accept Online Payments?
You will have to submit a short application with previous processing statements. The acquiring bank and provider will then analyze those documents and then only after the approval of pre-application. Merchants will have to complete a full application and that requires submitting a more detailed application with supporting documents.
Documents Mandated For a Credit Card Merchant Account To Accept Online Payments
Merchants must provide information on the application about their business. And details of the services or products that the business provides. The application will also need information such as the business domain, forecasted transactions, and monthly volumes with information on their marketing strategies.
Documents required for pre-applications.
- Completed pre-application form.
- Last three months’ history of bank statements.
- Last three months’ history of business payment processing statements.
And full applications will need these documents.
- Additional application.
- Certificate of Incorporation.
- Driving license/passport of the business owner(s).
- Void check from the business checking account.
Some additional documents needed for the application are as follows.
- Address proof of the merchant with a utility bill.
- List of shareholders.
- Last two years’ annual business financial statements.
- Copy of supplier contracts.
- A business license is required for operating the business.
- Bank reference letter for the owner.
- Large-scale merchants have to provide financial statements and also most recent business tax returns.
Points To Contemplate To Prefer a Suitable Global Payment Services Provider
Merchants must find a credit card merchant account provider that has a good record and also deals with online merchants of a similar industry type to accept online payments. They should also deliver you with dedicated price support. Moreover, it has to provide supplemental attributes to control chargebacks.
- Restrict additional charges. Do not prefer an offshore merchant service provider that functions on extended fees when trading with online merchants.
- Be upfront and sincere. Merchants that ought offshore payment processing, must consult factors with their service provider concerning their business type and functions.
- Examine testimonials from clients. Ideas of prior clients will be excellent concerns about how good or bad an image of an offshore merchant service provider is. Merchants must investigate and research their possibilities and get the proper company for the business’s necessities.
- Know what they precisely offer. Merchants must go for an offshore services provider that can deliver the best grade services. An offshore payment service provider must understand how to manage merchant prerequisites by providing excellent services such as 24*7 assistance, troubleshooting, and administration.
- Select adjustable terms. As business requirements can alter according to the time and assigning more expansive contracts or an automated revival feature is not correct. Merchants should go for the providers who can give adjustable span agreements.
- Tax Obedience. Fundamentally, if you have an offshore bank account and merchant account, you have to manage tax compliance. So, ensure to manage proper tax advice from a registered tax experience.
How To Opt For The Right Credit Card Merchant Account For Your International Business?
It is quite essential to research before getting a processing credit card merchant account. Especially if you are running an online business, you must ensure that the payment service provider specializes in your type of business and the challenges and opportunities it faces. If you want to get a secure and low-cost credit card merchant account and accept credit card payments online, prefer choosing InstantCharge. InstantCharge is the top leading online merchant account service provider across the world. With InstantCharge you can get top reliability, convenience, and ease of payment processing services.
A Credit Card Merchant Account Varies From a Traditional Merchant Account. How?
A merchant account is known as a web-based technology that permits payment transfers ignoring whether the transferring payment is irrelevant to the source of payment service provider location.
Whereas, a credit card merchant account refers to a payment technology in which the mode of payment service is outside the merchant’s country. But in both of the scenarios, the merchant account works similarly to accept online payments Poland. Regardless of the customer’s country, it is powerful enough to receive payments securely and faster.
List Some Main Perks Of a Credit Card Merchant Account.
Some key benefits of a credit card merchant account are
- Transactions processing volume. It has zero bar on transaction volume.
- Multi-currency acceptance. You can accept online payments in multiple currencies.
- Multiple credit card merchant accounts. You can handle all accounts for payment processing from a single dashboard.
- Various jurisdictions have dissimilar laws. It doesn’t refer to tax guidelines only, even also other laws from foreign administrations and distinct foreign trade rates.
- Process multiple credit/debit cards at once.
- It reduces operating expenditures.
Pricing Structure For Credit Card Merchant Accounts
Due to charges involved with accepting payments in different regions with different currencies. The fees on a credit card merchant account are higher than traditional online accounts.
Businesses using global accounts will generally see prices starting in the high 5% range to 10% for many online accounts. And these fees do not include the reserves applied to accounts. And with maintenance and writing fees.
Reserves for Offshore Accounts
The use of reserves is the primary factor that all offshore accounts share. Reserves are a predefined or fixed amount sent to the payment processor during the payment processing. Reserves lie between 5% to 10% of the monthly volume and are stored for six months. The first-month funds are released in the seventh month. And this type of account is called a rolling reserve.
Banks need reserves because of the risk associated with accounts. Businesses that have problems with chargebacks will usually have higher rolling reserves. And they are based on trust but in the offshore industry. But most banks will not free a merchant from a release agreement.
Hold Period for Global Funds
The average hold period for online merchant accounts depends on the bank. The business type, and the business model. Most banks usually hold funds for 10-14 days, and after that, they release those funds to the merchant. Businesses with good working history can lower those hold times to a couple of days. If they can also ascertain the grade of their sales. Hold times of reserves can be changed. But they will be listed in the contract signed with the offshore account provider.
Credit Card Payment Gateway
Any business needs to have a reliable and secure payment gateway. Especially when processing transactions offshore. However, accept payment gateways must be able to work with many different processing networks and balance transactions between accounts. And support the volume that many offshore accounts have without affecting security.
Global merchants must be provided with the best fraud prevention features. And those features will allow merchants to set the parameters for their business. And help in providing fraud and reducing losses without losing sales.
In most situations, offshore merchants use multiple accounts provided by different banks. But this does not happen with most merchants. Most businesses go for this setup when working offshore.
Do Merchants Need Multiple Accounts?
Having multiple merchant accounts is the best way to tackle payment stuck issues by depending on the merchant account. Because online merchants may face some problems remaining in business. However, as compared to the merchants that operate multiple accounts.
Moreover, operating with multiple merchant accounts can provide an increment in transaction volumes. And this will also allow merchants to increase the total sales of their business.
Conclusion
If you want to open a credit card merchant account, speak to the consultants at InstantCharge. Because our experienced offshore merchant services team will work with your company. To set up as many special merchant accounts as per your business requirements. Contact InstantCharge today. And a credit card merchant account consultant will get in touch with you shortly.
