There are many businesses that are considered high risk by
the banks. Some of them include adult entertainment websites, escort service
providers, pharmaceuticals etc. It becomes difficult for the high risk business
to get the merchant account especially in the case of a bad credit history or
if the possibility of chargebacks is higher.
Since all these businesses runs online and require an online
portal to accept payments and working without a merchant account is something
that seems out of the loop and can be even more problematic.
For all such business, overseas merchant account is the best
thing to look up to as these accounts provide solutions to the merchant account
needs without imposing much trading restrictions.
Why
to opt for overseas merchant accounts?
Tax
benefits:
If you have an overseas merchant account you will be barred
from paying hefty taxes. You just have to pay a minimal amount incorporated in
that particular area.
For example many
gambling businesses that work for the UK clients have setup their business in
Malta area to avoid paying heavy gambling taxes to the UK government. So, they
just pay 1% tax to the Maltese government.
Easy
to get merchant accounts
Businesses such as adult entertainment, subscription
services or travel related business find it difficult to get the merchant
account in their own country or area. Obtaining a merchant account is easier
because it comes with less restrictions and more flexibility to work with.
Lower
fees
If your business has more customers in an overseas market
then it is beneficial to have a merchant account in that area.
The reason is simple a domestic bank or merchant account
provider would impose higher processing fees for an overseas transaction.
Setting up merchant account in that country will cut extra processing charges.
Increase
in sales and higher profits
Since there is less processing fees and lower risk so
chances of earning profits increases. As compared to a domestic bank which will
impose a higher processing fee for an overseas transaction being made, overseas
merchant account is a better option to go with.
Also having an overseas merchant account will fetch more
overseas customers for your business and expand it globally.
