Why you need an Offshore Merchant Account for CBD Business?

The CBD Industry has been growing in leaps and bounds with it being predicted to amass over $3 billion annually. Looking at the figures, it may certainly look like a great business opportunity. However, the legal and banking issues surrounding the industry can be a cause of serious concern for any merchant.

If you operate a CBD Oil business, you are more than aware of the obstacles faced to find a decent domestic bank or processor who is willing to take on your business. Even with CBD products being legalized in several states, domestic processors are still wary enough to shoo away businesses who sell them. It is especially difficult for online stores selling CBD or related products to acquire quality merchant account solutions.

Unsubstantiated health claims, legal uncertainties, changing industry regulations, compliance issues, little or no knowledge of the industry and reputational risks are some of the reasons why opening a domestic merchant account is not easy.

Open an Offshore Merchant Account for CBD Business

Many CBD merchants opt to go for Offshore Merchant Account Solutions when finding regular credit card processing solution seems impossible. While going offshore is not the first choice for many merchants, the benefits and advantages provided by an offshore merchant account can certainly be worth it in the end.

An offshore merchant account is a merchant account that is established in a non-resident country. So if you operate a CBD business in US and cannot find a domestic processor in your country, merchant account providers like IBS offer Offshore Merchant Account solutions that will allow you to accept credit card transactions from your customers.

Apply for Offshore Merchant Account Solutions

Unlike many domestic banks and processors that make it extremely difficult for CBD merchants to open an account with them, applying for an offshore merchant account is hassle-free. Your chance at getting approved by an offshore provider is way higher especially since you fall in the high risk category.

Advantages like multi-currency processing, business expansion, low or no taxes, no monthly volume caps, etc. will only allow your business to flourish.

Selling CBD products usually means high volume transactions which means they, online stores in particular, cannot afford to have their transactions stopped midway simply because they reached their monthly processing limit. Here, Offshore Merchant Account offers an ideal solution to this problem with no transaction volume caps.

One big advantage of offshore merchant accounts for CBD merchants is the high level of discretion that it provides.

Enjoying ties with numerous stable and secure banking partners, IBS offers customized offshore merchant account solutions for CBD e-commerce merchants at competitive rates.

How will an Offshore Merchant Account benefit your small business?

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.

Advantages of an Offshore Merchant Account

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!