How To Explain Offshore Credit Card Processors

Processing credit and debit cards is a critical aspect of today’s e-commerce. The consumer expects speed and convenience from e-commerce. Merchants can fulfill this demand, with most payment processors offering a range of solutions and services. That includes offshore credit card processors.

What is an Offshore Merchant Account?

Merchant accounts located offshore are those in which the acquiring bank(s) or offshore processor(s) are independent of the business’s primary headquarters location. In the case of a US company establishing a payment processing account in Europe, the US company’s European account would be offshore. 

International merchant accounts and offshore merchant accounts are similar. In general, US acquiring banks consider merchants who seek offshore merchant accounts as high-risk. In contrast, international merchant accounts are used by both high-risk and standard-risk merchants seeking to capitalize on the booming growth of global eCommerce worldwide. 

High-risk merchants can establish offshore merchant accounts to process payments in a safe and secure environment. You will have optimal access to worldwide credit origination that will protect your business’s liquidity.


Overseas payment processing has numerous advantages. In addition to certain tax benefits, you can process your payments overseas. Furthermore, merchants can process payments in multiple currencies and through different credit card providers. The business can increase its overall productivity due to expanding its customer base to other countries. Additionally, the company can receive credit cards over a secure and encrypted network. Vendors will not lose out on security measures simply because transaction processing is abroad. Although offshore merchant accounts are secured, fraud and chargebacks are prevented.

Why choose Offshore Credit Card Processing Services?

Tax advantages and currency fluctuation protection are among offshore credit card processing benefits. In terms of online credit card processing services, offshore credit card processing has emerged as one of the best practices. With the use of secure servers, online purchases are now easy for customers. Merchants can also accept payments in several currencies through online credit card processing services that offer offshore merchant accounts. 

Offshore merchant accounts offer exceptional tax reduction benefits. The benefits of processing payments offshore include Ireland, Gibraltar, and Malta, which offer excellent tax advantages. They are relatively low-tax countries yet very reliable.

Some businesses that choose offshore payment processing are high risk, but many choose offshore banks for payment processing for a good reason. Offshore banks tend to be far more liberal than domestic banks and, for example, will accept online gambling and gaming, adult content, and dating. The disadvantage is that offshore merchant accounts are generally more expensive than domestic ones (depending on the bank with which the merchant is partnered).

As discussed, offshore and international banks are also liberal with volume limits for businesses. Since payment processing volume caps are generous in the nutraceutical, pharmaceutical, or multilevel marketing industries, merchants often look to offshore or international solution providers. A merchant account offshore gives them access to new, emerging markets, for example, in U.S.-based e-commerce businesses. With the assistance of a partner, it offers easy company registration in countries to help e-commerce business owners expand their market. It cannot be easy to register a company in a foreign country.  

How does offshore credit card processing work?

Offering online credit card processing, online merchant centers, fraud management, order processing, and a 24-hour customer support system, offshore payment processing services can keep your business open 24 hours a day, 7 days a week.

Merchants and customers receive automated receipts simultaneously when credit card transactions are authorized within seconds. With AVS (Address Verification System) and fraud screening systems, offshore credit card processing services can offer reduced charges. Rates of transaction processing depend mainly on the form and volume of the business. With increased high-risk merchant processing, offshore merchant accounts have become more popular. 

Online casinos, pharmaceutical companies, and online gambling have become dependent on offshore merchant accounts for high-risk transactions. That has led to offshore credit card processing adoption, as it offers specific jurisdiction and a steady market. Offshore credit card processing is very effective and easy to save time and money.

Business types that acquire offshore merchant services

Offshore processors typically serve sectors with a high level of risk. 

  • High-risk merchants

Fraudulent transactions are inherent like high-risk merchants. Banks classify high-risk businesses as high-risk because chargebacks, frauds, and refunds are possible for these companies. As well as having high sales volume, low credit scores, and noncompliance with security regulations, high-risk merchants are also vulnerable to fraud. Due to these risks, banks often raise merchant fees or refuse to deal with them in the future. Not every high-risk merchant is illegal, however.

Cryptocurrency, blockchains, tobacco, tobacco products, financial services, travel, health, nutraceuticals, online pharmacies, weapons, and adult-oriented services are some examples of high-risk merchants. A low chargeback ratio will allow low-risk merchants to acquire offshore merchant services. Examples are restaurants, beauty products, retail, and other low-risk businesses.

  • E-commerce companies

Online retailers can also be considered high-risk businesses. The rapid growth of the e-commerce industry makes it essential for online businesses to develop a strategic payment processing approach. It is not always easy to facilitate international transactions for e-commerce businesses looking to reach global audiences.

Online businesses can process overseas payments efficiently by using offshore merchant services. Clients outside the business jurisdiction can use major credit cards and multiple currencies. When e-commerce businesses take advantage of these advantages, they can easily cater to more customers, boost sales, and increase profits.

In Conclusion

Choosing an offshore payment processor requires extensive research. The provider you choose should specialize in your type of business and the challenges and opportunities it faces, especially if yours is high risk.

Companies can provide more options for their clients now that offshore payment processing is part of today’s methods for transactions and purchases. That could lead to the additional potential for high sales, a more extensive customer base, and more economic success.

Businesses are about to grow by expanding worldwide and achieving flawless financial transactions when combined with other appropriate tools and platforms.