.:Offshore Merchant Accounts
Increase Your Earnings
AMerchant Account is an account you have with a bank in order to
accept credit-card payments from customers online. 
You can now set up merchant accounts with credible banks based in Panama
and Europe (for privacy and tax considerations). Our network features
multi-currency accounts with low rates and fees. We can also help if
your business is considered high-risk.
Your Merchant Account processing services are provided by a bank or a third-party processor (on behalf of the bank). These services include credit-card authorization, settlement of funds through the bankcard associations (MasterCard and Visa), depositing of funds to checking accounts, merchant billing, and account-activity reporting.
How to Qualify
The most important question that providers will ask is whether your business is likely to have a high rate of fraudulent transactions or chargebacks. A chargeback is a reversal against a sale that was credited to the merchant's account. Chargebacks are usually the result of an error made by the cardholder's bank, a misunderstanding by the customer, or fraud. The merchant must provide proof that the goods and services in question were provided to the customer.
Basic background checks are also a must. They include a thorough credit history review of the owners or officers listed on the application, in addition to credit references from two to three suppliers.
Finally, if you have accepted credit cards in the past, providers will require previous merchant statements to better gauge your charge and chargeback volume.
Common Questions and Answers
Q: Is it really worthwhile to accept credit cards?
A: By accepting major credit cards you can increase your credibility, customer convenience, and best of all, your sales. Statistics prove that accepting credit cards can increase sales by 10% to 50%, or more.
Q: What if I already have a retail merchant account, can I use this for the Internet?
A: No. If you want to do credit-card processing online, then you will have to obtain a Merchant Account, which requires special banks that offer this capability. If you have retail Merchant Account, it will be necessary, as per Visa/MasterCard regulations, to have a separate account for the Internet. As an online merchant, you will be charged higher rates because fraud is a much higher risk online than it is in the retail world. The only rate changes you should see are in the discount rates and transaction fees.
Q: What credit cards can I accept?
A: The most common cards processed are Visa and MasterCard. American Express and Discover accounts are also widely available. Some providers offer Diner's Club, JCB and others.
Q: When can I expect money from my credit-card sales to be available in my bank account?
A: In most cases, the funds are available in your own business checking account within two to three business days after you have batched your daily business. Electronic processing enables the banks to more quickly and efficiently process the transactions and credit your account.
Q: Are there monthly minimums associated with accepting credit cards?
A: Usually the monthly minimum is around $25; for some banks it might be higher. This processing fee is collected by your transaction and discount rate-fees from your credit card sales each month.
Q: What is a chargeback and are there any fees?
A: A chargeback occurs when a customer has their credit card credited for an item they returned, etc. Fees for a chargeback are usually around $15 to $20.
Q: What is a discount rate?
A: This is a fixed-percentage rate that is deducted from the purchase cost when an order is made. A small transaction fee is also deducted in addition to the discount rate, depending on your provider bank.
Q: What is debit-card processing?
A: Debit card processing is almost like accepting credit cards except for the fact that you are using a debit card to process an order.
Q: What determines high risk?
A: Businesses such as online gambling and pharmaceuticals (and others) fall into the high-risk category. As a result, some banks will not provide Merchant Accounts for these services. Those that do will charge higher rates and fees to balance potential risk.
Q: What is Address Verification Service (AVS)?
A: AVS is a service that is built into the authorization process to alert the merchant to potentially fraudulent transactions. The numerical portion of a consumer's street address as well as his zip code is sent along with the transaction data and is matched against the address that is registered with the consumer's credit card from their issuer's bank. A response code is sent back with a code that indicates a match, partial match or complete mismatch. This information is simply reported back to the merchant and does not, in and of itself, result in a transaction being declined. The merchant then has the option to contact the customer to confirm the correct address before deciding whether or not they want to ship any goods.
Q: What is a payment gateway?
A: A payment gateway links your web site to the credit-card processing company and your merchant account. When your customer enters his or her credit card number on your web site, the payment gateway obtains authorization for the charge and later handles the transfer of funds into your merchant account.
To learn more about your Offshore Merchant Account, contact us today.
