If your business falls in the 'high risk' category, you are likely to have your merchant account applications denied by banks and processors a couple of times. Can the solution to this problem be to set up a high risk offshore merchant account?
Well, yeah. Banking regulations are more lax in some jurisdictions, and some international financial institutions are more willing to work with high risk businesses as well. This means that enlisting offshore banking services can very well help your chances of getting a merchant account.
Here are some tips on how you can find the right offshore banking service provider.
Many offshore banking service providers specialize in working with high risk merchants; however, not all high risk merchant services providers work with foreign banks and processors. Many high risk merchant services providers work only with US-based companies, providing accounts only through US-based banks. Thus, before applying for an offshore account, you will want to confirm that the company you are considering partnering with works with businesses located in your country. This info may be provided on the provider's website, or you may need to speak directly to their sales staff to receive confirmation.
High risk offshore merchant accounts are often more expensive than standard merchant accounts. What’s worse is that high risk merchant service providers know you are desperate for a merchant account, and some, though not all, will try to exploit your position by charging you as high as they can. It is therefore strongly recommended that you compare several quotes from different high risk merchant service providers before making a decision.
Having a high risk business does not mean that you cannot accept credit card transactions like any other business. Get your business back on track by finding a merchant account service provider that will partner you with the right acquiring banks.
