Offshore merchant accounts are commonly used these days. By setting up online businesses, merchants have to interact with customers across the world. Regardless of the size or type of online business, merchant accounts and credit card processing services is a must for each one of them.
Various financial institutions offer different types of merchant accounts. Among them, offshore merchant account is most commonly used by E-commerce merchants. One of the benefits of offshore merchant account is that it does not require huge initial set up cost which makes them popular with small businesses in particular.
Different merchant account providers offer different setup charges. But most of them charge zero for initial set up which is a huge benefit for small businesses.
Offshore accounts obviously operate outside your own country and since you would be out of the tax regulation laws of your country, you will be exempted from paying taxes. For small businesses and even online business start-ups, the reduced burden of additional costs is a huge relief.
All types of businesses, whether large-scale or small-scale, can be victims of frauds and scams. Start-ups and small businesses especially cannot afford to be tangled in frauds and losses. Unfortunately, these merchants are more vulnerable and can be conned easily. This makes offshore merchant accounts hugely beneficial as merchant account providers take necessary steps for the safety and protection of their clients from online frauds.
Businesses with offshore accounts have to deal with transactions done with different currencies and all kinds of credit cards all round the world. This translates into higher chances of expanding your customer base. Along with clever business operations, these small businesses have the potential of boosting sales and profits. For small businesses that do not have to invest much into these accounts, this is a massive growth opportunity and benefit.
Advent of technology bought about a meteoric rise in e-commerce and online business models. Now, daily online credit card transactions have become a norm.
E-commerce merchants are more likely to be exposed to stricter rules and regulations. However, there exists an option for business that operates business across the world to legally position itself in a jurisdiction that favors it the most. Simply put, an offshore merchant account is an account that allows a business to accept credit card payments through a bank that is located in a jurisdiction outside the country where the business operator lives and works.
Offshore banking is even popular with some of the biggest global companies such as Apple and Google who set up offshore subsidiaries in low or no tax jurisdictions and serve different segments of their global market.
Merchants are now taking advantage of the various benefits that an offshore bank account has to offer. The possibility of expanding business and reaching a world-wide customer base possibly being the biggest positive factor. So what exactly makes offshore merchant accounts so favorable instead of a domestic merchant account?
Let’s take a look at some of the advantages –
- Wide selection of banks
- Hassle-free process and Quick Approval
- Multi-currency transactions
- Low or No Tax burden
- Tax-free offshore profits
- Major credit cards are accepted
- High volume transactions are allowed
- Easy approval of high risk businesses
- Real time updates available
- Safe and secure payment gateways that can be easily integrated with your e-commerce business
Any astute merchant will surely want go offshore and reap the many benefits that an offshore merchant account has to offer!
Does Banking Offshore Makes Business More Productive and Stable?
Keeping money in other country is really illegal? While most of individuals don’t offer explanation for keeping money in places like Switzerland, Belize and Cayman Island, so they doing something illegal?
It’s completely illegal if I say having offshore bank account is immoral or illegal. Holding offshore account is absolutely legal and it’s a smart decision. Hence it provide grate privacy and confidentiality for the funds deposited to offshore. The account is also called tax evasion, but it’s not true, the problem is not in offshore banking, it is in those who use it in wrong way like terrorist and drugs smugglers have been know how to misuse the Offshore Banking Services. Because of this it’s tempting to believe that everyone is doing something illegal with offshore bank account. The offshore banks are located all over the world and more are situated in smaller Exotic Island and some are based in less exotic places which are highly regulated jurisdictions with first class reputations.
Its not easy to open an bank account in offshore jurisdictions, because there are levels of offshore bank accounts, you are able to open an account only if having $500, while there are some banks which won’t even say hello unless you have at least a million. In some cases, investing offshore includes creating a company and incorporating in the host country. In an article recently published by The New York Times, Adam Davidson chronicled how he could have incorporated and started an offshore bank account in 10 minutes for less than $3,000.
The legality of any offshore account depends upon how you use it.