GoFuckYourself.com - Adult Webmaster Forum - Some Advantages Of An Offshore Merchant Account

For many merchants, the word ?offshore? conjures images of shady dealing and illegitimate money. However, this is generally not the case. An offshore merchant account can have many benefits and it is perfectly legal. Offshore merely means that the merchant account is not located in your country of origin (off your shores). As many business owners have realized long ago merchant processing accounts are necessary to collect payments from customers in this increasingly digital world. ?Cash is king? does not really apply to most business models when dealing with consumers. Many new businesses or businesses considered ?high risk? have a difficult time acquiring direct merchant accounts domestically. That is where offshore merchant solutions can be very valuable. You may find that offshore merchant accounts have slightly higher rates and fees than a domestic based account. However, there are other advantages that often offset the higher initial costs of having an offshore merchant account. The real benefits can come in the months and years down the road. The advantages can include lower security deposits, less scrutiny of your business and possible tax advantages to name a few. In many cases, the longer the offshore merchant account runs the better the savings become. Many U.S. banks can require an opening security deposit of $5,000 or more. For the small business, especially Internet based just starting out, this amount of money can be very difficult to part with. Additionally, many banks will take extra money in a reserve account out of your monthly transactions to cover charge backs. Many new business owners feel that the initial security deposit should be enough of a surety against charge backs but the banks simply protect their exposure as much as possible. Their experience with new businesses, especially Internet based, have led to these measures. Offshore merchant accounts generally have more palatable deposits and reserves. In addition, with the increasing worries of money laundering and worries of illegitimate business practices, many domestic banks are becoming extremely cautious with sudden increases to a merchant processing account. Every business owner knows that advertising campaigns have the potential to increase sales in a short period of time. Some banks may close such accounts for ?suspicious activity? and leave the follow up to the merchant. This is a knee jerk reaction but not that uncommon. This rarely will happen with an offshore merchant account. Finally, most people are aware that there is certain tax benefits in an offshore merchant account. An offshore merchant account may allow you a legitimate way to get your profits located outside the U.S., allowing for some reduced taxes. Before making these arrangements it is advised that you speak with a CPA and attorney to make sure that you are doing everything the way it should be done. We here at IPS will be more than happy to walk you through the process and direct you to the appropriate professionals to make sure your assets are protected. Wether you are a new business having trouble acquiring a domestic merchant account, you are a merchant that has had their domestic account frozen or you have a domestic merchant account thinking of a cascading option it may be time to start an offshore merchant account.

Hopefully you have found this information helpful. The number of variables that can have adverse effects on your business can seem intimidating to some. If you have any questions please do not hesitate in contacting me.

Regards,
Keith
[email protected]
O.800.439.1974 ext.122