Offshore Banks donít open Merchant Accounts
by, 01-11-2009 at 08:58 AM (1082 Views)
Many offshore banks have very strict rules on who they accept as their customers and contrary to popular belief they donít accept just anyone as long as they have money! They have their reputation to maintain as a reliable and trustworthy financial institution and it would not be acceptable to them to allow criminals to use their services. Opening an offshore company can give you privacy or anonymity, the confidentiality laws of these jurisdictions are usually very strong and are a legal method of minimizing the tax amount you have to pay each year.
This is what we wrote in one of our articles for not long time ago, and it is true, almost any bank in an offshore jurisdiction has that strict rules and regulations that they simply are unable to enter into the Merchant Acquiring business.
Offshore banks will not be able to obtain a license to clear Visa or Mastercard credit cards often because they wouldnít be able to withdraw the money from the card holders due to for instant European banks would decline such requests.
For instant if you get a Merchant Account in the Philippines or in Mauritius which both are great known offshore jurisdictions and which also have a license to do credit card clearing for each country, then you will often face the problem that your customers canít pay with their credit or debit card.
This due to the fact that many banks for instant in Europe or in the US simply decline such request because those countries are knows for scam and frauds.
However the problem can be solved very simple. You can become a Merchant Account with some banks in Europe and in countries which arenít black listed in other banks around the world, once you have this merchant account you can ask the agent or the bank with which you have the merchant account to transfer your funds to an offshore bank account for instant in Cyprus.
Donít make the mistake and open a Merchant Account in your local bank and ask them to transfer the money to your offshore bank account which might be in any of the different offshore jurisdictions, because they wonít do that.
By using the above model, you will need to face that your payment processing rates and fees might be much higher then what you can get them to in your local bank, but this should make it up with the TAX benefits you get through your Offshore Company.
Donít be fooled by low budget payment processors and payment service providers which promise you a offshore merchant account with a processing rate for instant of 4% or even lower, thatís simply not possible. Also all the so called ďfreeĒ service that tell you they will process your Visa and Mastercard credit cards for 3% flat rate, no monthly and no setup fees, they will process the cards but donít transfer the money to your offshore bank account, and even if they would like to do that, then their financial institution will decline that request.
As solid Offshore solution for instant in Cyprus isnít easy to get done. It needs the experience and knowledge from people which have been working in both the Merchant Acquiring and the offshore company formation business sectors.
There are only a limited number of Offshore Service Providers which can help you and also assure you to become the real and right solution, many other will fool you into something you have better been without.
For the real solution which both is secure and reliable contact cclogic.com today your Offshore Merchant Service Provider.