Setting Up an Offshore Pharmacy e-commerce Merchant Account

Plus market research is another important factor. But the most vital part of e-commerce business is credit card processing, which complicates it further for the online pharmacy stores and other high risk businesses.

The procedure of opening an online pharmacy store requires quality time to settle down legal issues. Once you are through with the legal issues, the next problem online pharmaceutical business face is the failure to satisfy exact requirements of credit card processing banks. If instead you opt for high risk merchant service providers, they might as well charge you exorbitantly for their services. 

 

Following are the 3 basic solutions for your problem:

·         Opening an Offshore Merchant Account: This will expand the option of many international credit cards processing banks for you.

·         Opening a High Risk Merchant Account: With such accounts, merchants can carry their online  credit cards transactions without thinking about termination due to chargebacks

·         Opening Offshore Pharmacy Merchant Account: These accounts offer you joint benefits of various options available for the online pharmacy stores.

Advantages of Offshore Credit Card Merchant Account Processing

Any business is incomplete without a merchant account as it provides freedom for independent credit card processing to the business owners, but an offshore merchant account offers several

Offshore merchant accounts are quite different from domestic merchant accounts and have fewer trading restrictions. It is not a tough deal for any merchant to acquire an approval from an offshore acquiring bank. This rather makes it easy for merchants dealing with the high risk industries to get their merchant accounts.

Offshore merchant account

 Major advantages of Offshore Credit Card Merchant Account Processing

·         Transaction volume Caps Not Charged: Generally offshore acquiring banks do not put any cap on how many transactions you can make process monthly. This grants your business full freedom to maximize profits and reach out to the full potential.

·         Offshore Credit Card Processing: Through offshore high risk credit card processing, you can accept payments in multiple currencies.

·         Low or No Taxes: With offshore high risk processor, you can get benefit from jurisdiction’s tax requirements

How Time in Business impacts High Risk Merchant Accounts

It may also refer to the time a merchant has been accepting credit cards, generating credit card processing history or even operating a merchant account. This is one major criteria used for determining the risk associated with a merchant’s card processing.

Obtaining merchant account approval is exactly like acquiring an unsecured loan as there is always a risk of potential chargeback on every processed dollar, which ultimately turns up as a liability for the acquiring bank. Similarly if a merchant cannot pay back the chargebacks, the bank stands liable for the same. 

High risk merchant account

Rick Factors for High Risk Merchant Account Providers

The major risk factors include:

·         Higher incidents of chargebacks

·   Higher incidents of crossing the chargeback thresholds set by the card associations, resulting into fines and other sanctions

·         Higher incidents of merchant failures

Newly established business poses greater chances of merchant failures and inabilities to pay chargebacks and fines. As high risk merchant does not always guarantee success, especially when they are new, so there is always a possibility that the business can fail to meet its obligations to the high risk merchant service providers for repayment of chargebacks and fines.

Benefits of using multiple merchant accounts

Most businesses wrongly assume that having multiple merchant accounts will costs them too much. However, more than one merchant accounts can help a business save huge money instead.

You can save money by:

Avoiding Extreme Surcharge Fees 

When you use only one merchant account (card-present) to process card-not-present limited transactions, you need to pay extreme surcharge fees. On the other hand, more than one merchant accounts enable you to use the right type of account for making multiple card-not-present and card-present transactions and save money. 

More Profit 

With multiple merchant accounts you can control profit loss even when your acquiring bank is going through downtime. Also, you won’t have to face much loss with frequently changing MasterCard and Visa rules, for termination of one single account can’t affect you much. 

Multiple Options for Payment Processing 

Having multiple merchant accounts for your ecommerce business offers you more payment processing ways even if an acquiring bank processes transactions in limited currencies (US Dollar and Euro mostly). You can accept Visa transactions in other currencies including Indian Rupee and Australian Dollars.

Merchant account Vs. PayPal – Which is better?

Most customers today use credit cards for payments when making a purchase and this requires businesses to have authentic payment gateways. While most businesses prefer a merchant account to be able to accept credit cards, some go for third party services like PayPal.

Here’s how businesses distinguish the two services and make their preference.

An Easier Payment Solution 

 

Every business wants an authentic payment gateway for completing a transaction and most find a merchant account better than a PayPal account, especially startup businesses. And those who need an easy, cost-effective and quick method prefer PayPal. Still, a merchant account always has an edge over a PayPal account. 

Let’s know why:

1. When you have a merchant account, all the payments made by your customers get directly deposited in it, whereas with a PayPal account you need to request the transfer of a payment to your account or else it’ll stay there only.

2. A merchant account charges fixed monthly service fee and is cost-effective, but transaction fees a PayPal account charges is relatively higher.

3. Merchant accounts offer quick support for customers facing problems, but PayPal accounts don’t.