With the advantage of going online, businesses are not restricted to a small area anymore. For a business that aspires to cross international boundaries and expand its reach to worldwide clients, the financial and revenue aspect of the business can get a bit challenging.
An international business needs to accept payment in different currencies. Also, merchants running an e-commerce business may have to face an increased risk of chargeback and bad credit scores. Acquiring an offshore merchant processing agency can make things a lot simpler for the business.
But, before establishing an offshore merchant account you need to consider a lot of factors. This article will look into the do’s and don’ts of offshore merchant processing so that you have a clear understanding of it before you set up an account for your business.
What is Offshore Merchant Processing?
An offshore merchant processing agency is a financial agency that is intended for businesses that are headquartered in a specific country but have customers from different parts of the world. The acquiring bank of the offshore merchant account is usually located in a different country than the parent country of the business.
The merchants who generally set up an offshore merchant processing account are considered “high-risk” by the bank. These payment processing agencies are a perfect solution for merchants looking to go global and take advantage of a worldwide customer base.
What are the Dos and Don’ts of Offshore Merchant Processing?
1. Do Check the Credibility of the Offshore Merchant Processing Agency
With a boom in globalization, multiple offshore merchant processing agencies have sprouted in the market. They all claim to provide their customers with the best possible financial solutions for their business. But, you can only assess the truth for yourself.
So, before you choose a payment processing agency for your company, make sure you check the agency’s credibility. You can read the testimonials of previous customers and decide whether the offshore payment processor is a good fit for your business.
2. Do Check Whether the Offshore Payment Processor Accepts Multi-currency Payments
The primary intention of setting up an offshore payment processor is that you would be able to accept payment from customers from all over the world in different currencies. While some offshore payment processors allow a wide range of currency intake, some might have some restrictions.
The ability to accept limited types of currency will not allow your business to grow. Thus, ensure your offshore payment processing agency enables you to accept multi-currency payments. It will help your business to flourish worldwide and let you generate more revenue.
3. Do Choose A Processor That Values Services
High-risk merchants need different financial services to help run their business smoothly and efficiently. While finalizing an offshore merchant processor, make sure they value services and care for the welfare of their customers. See if they produce services like troubleshooting, maintenance, and security services, and select the one which seems to be most suitable for your business.
4. Do Make Sure That the Processor Provides Advanced Security
When you’re entrusting your money to a payment processor, you need assurance of the highest level of security. Make sure your payment processor is ready to give you that guarantee that your money is going to be safe with them before you sign the contract.
Check whether their operations are encrypted and firewalled with multilayered security systems. The system must alert you and the agency when some fraudulent action occurs. The agency must also be ready to resolve the issue and help your account to bounce back as fast as possible.
5. Do See If the Processor Offer Responsive Customer Support
As an offshore merchant processor is located at a different location than the merchant’s primary location, you must stay connected with the processing agency. Before signing the deal, see if the payment processor has a responsive customer support cell.
Every business needs a unique approach to handle the issues that might arise during its transactions. Your offshore payment processor must be available at all times so that you can approach them regarding any grievances, and they must be prepared to handle those situations efficiently.
1. Don’t Forget to Research and Explore the Different Offshore Merchant Account Providers
You can find different offshore merchant account providers in the market. But, before choosing one for your business, ensure that you have researched them. Take time to read testimonials and online reviews to assess the performance history of the processors. Many processors charge unnecessarily high fees from their high-risk clients. Make sure you ask for quotes from multiple payment processors to find the best fit for your business.
2. Don’t Choose a Provider That Requires You to Sign a Long-term Contract
When you explore different payment processing agencies, you will find that many of them require their clients to sign a long-term contract. While picking an offshore payment processor, don’t go for the one who expects you to sign a long-term agreement. Also, check whether they auto-renew the contract so that you don’t get caught in a surprise. We recommend selecting an agency that offers you the flexibility to renew the agreement month-to-month.
3. Don’t Overlook Transparency
Transparency is very important when you are authorizing someone with your hard-earned money. Sometimes agencies have hidden charges that you may not notice and end up paying a lot more than your expectations. Make sure you read and re-read all the clauses, terms, and regulations before signing the contract. Make sure you are aware of all the fees you need to pay and the clauses you need to meet.
4. Don’t Choose a Payment Processor that Does Not Offer Customization
Financial solutions are not a one-size-fits-all concept. Your business will need a customized approach to help it thrive and flourish. Look for payment processors who allow you to curate a tailored solution for your business. They should meet all your needs efficiently. These are some of the crucial payment processing services you should receive:
- Credit cards terminals
- POS systems
- Mobile payment solutions
- Payment gateways
5. Don’t Underestimate the Advantages of Offshore Merchant Processing
Acquiring an offshore merchant account might seem a hassle, but it has multiple advantages for your business.
- They can help you accept various credit cards.
- You will have tax benefits.
- You won’t have a restricted target volume cap.
- You will not have to set up separate local merchant accounts in different countries.
The Bottom Line:
We hope these dos and don’ts of acquiring an offshore merchant account will help you make solid decisions. Ensure to keep a vigilant eye while hiring an offshore payment processing agency for your business.