SysOp

Well, one of the common questions we receive from clients are why we are unable to open Merchant Accounts for businesses outside of Europe and why we can register companies in the Seychelles, Belize and BVI but can't open merchant accounts for such companies.

The answer seems as easy as the question, according to Visa and MasterCard cross border regulation it is not allowed for a bank in Europe to take on merchants which not have a EU presence, that means companies located in the Seychelles, Belize and BVI are not part of the European Union and therefore can't be accepted by the Acquiring Banks and Payment Processors we work with.

Strange because you are offering your service to register companies in such jurisdictions?!
No it is not strange, see, the company formation services and the opening of offshore bank accounts are our core business and what we have sepcialized in, the merchant account services are just an ADD ON if you like, we do not make any money out of it but have it as an service for clients which are incorporating their company in Cyprus through us.

You can open a bank account for clients worldwide, but not a merchant account how comes that?
Also one of the many questions we get, to clarify, the opening of a bank account regardless which bank you are asking to do this, is different from merchant accounts, there are not the same regulations for a regular business bank account or if you like offshore bank account as for the processing of credit cards, further a Merchant Account can be compared to a bank account with a credit line, since the banks will have to give some sort of credit to the merchants they take on, a little thing which many don't know and which can have a huge impact to the bank if a merchant get excessive chargebacks.

Isn't there a work around here?
If the reason for looking to go offshore with your online business is tax safings and anonymity then there is a work around it is just a little more expansive, for instant you can have a Cyprus company which then again can open a Merchant Account and / or bank account and which can be registered with a nominee director and shareholder, this alone will reduce your corporate tax to 10% and give you a 100% anonymity.

or

You can register the Cyprus company with a Nominee Director and Shareholder as foreigners, this will reduce the corporate tax to 0% (the company will be exempted from any tax) also here you will have your anonymity, this is a little more expansive but one of the most efficient ways to build a work around for this, this setup with a Cyprus company can be accomblished by any person worldwide and don't requires anyone to visit Cyprus, the bank or the payment processors.

Finally there is the most professional way to do it, Have a Seychelles Trust or Private Interest Foundation to hold the shares in a Cyprus Company, this will be the ultimate solution for achieving both Asset Protection, Privacy, 0% corporate tax to pay and all the option a European company may have including merchant services and banking facilities.