Offshore Payment Processing - Five Things You Should Know
by Amald 01 business servicesOffshore payment processing is a complicated term for merchants. So let
us discuss this merchant service.
1.
What do you mean by Offshore Payment
Processing?
Offshore refers to a location outside of anyone’s home country. And this
term is used in the finance and banking sector. And merchants open
foreign-based accounts to process their transactions.
On the other side, payment processing allows processing transactions.
And that allows merchants to accept credit, debit, or payments via digital
modes.
Offshore payment processing is the process of managing the transactions
of businesses. Such as naming overseas payments and the nature of business. So
firm that processes offshore merchant services is an offshore merchant service
provider.
2.
What are the benefits of offshore
payment processing?
There are some ways in which offshore payment processing helps to do
business.
- Multi-currency
transactions. By using offshore merchant services. So the
businesses can accept payments in different currencies. And in the growing
world of eCommerce. Merchants can reduce cart abandonment problems.
Because customers can view and buy products or services. And that is based
on their preferred currency.
- Security
factors. Offshore payment providers manage strict
security standards. Because providers offer security measures. Such as
fraud management, address verification systems, screening systems. And
also real-time customer support to prevent fraud and chargebacks.
- Decrease
business expenses. Offshore payment processing is an inexpensive
way to sell services globally. So, the businesses can avail benefits of
their offshore account. And without the processing and operational
charges. So, the merchants can also save expenses. Because of the
reduction of foreign exchange fees and lower taxes.
- Boost
in profits. Owning many offshore merchant accounts allows
merchants to increase sales. Because offshore payment processing allows
businesses to manage transactions.
3.
What is the process of offshore
payment processing?
An offshore payment processor will provide you with a payment gateway.
And that allows the processing of business transactions to a foreign location.
And this is where offshore credit card processing companies perform their part.
Most customers use the new set of cashless payment modes.
Merchants can receive the funds through an offshore payment gateway. And
here is the process.
- For
example, a customer is paying by using a credit card. Customers will be
logging on to the merchant’s website. And filling in the required details.
Like credit cards, debit cards, net banking. Or any other payment mode.
- And
the data will be forwarded to the merchant’s bank. So, the data transmits
to the credit card network for verification.
- The
credit card network sends the transaction details to the customer’s
issuing bank.
- And
the issuing bank will approve or decline. So, the exchange will send the
results to the merchant’s bank. And the processor will forward the details
to the customer. About the transaction results in real-time through the
merchant’s website.
- And
after approval, the issuing bank will transfer the amount to the
merchant’s bank. By using a credit card network. Also, automatic receipts
are sent to both merchants and customers. Because this process takes a
couple of minutes or even seconds.
4.
Which types of businesses get
offshore merchant services?
Offshore payment processors forward to the regions. That comes under the
high-risk categorization.
- High-Risk
Merchants. A high-risk merchant is a reputed business. And that has the
nature of receiving fraudulent transactions. High-risk merchants are
categorized by the banks. Because these businesses have chargebacks,
frauds, and various refunds. So High-risk merchants account are vulnerable to high
volume sales and bad credit card scores. And also non-compliance with
security rules. And these risks tend to charge merchants higher fees. Or
can also stop them from future transactions. But not all high-risk
merchants are considered illegal.
Some businesses that fall under the high-risk category are:
- Cryptocurrency
- Blockchain
- Tobacco
- Finance
- Travel
- Online
Pharmacies
- Gambling
- Adult
Services
- Weapons
Low-risk merchants can also get offshore merchant services. And if their
chargeback volume is high. Some examples of businesses categorized as low-risk
are retail, beauty products, restaurants, etc.
- eCommerce
Businesses. An eCommerce can also come under the high-risk category. And
because of the growth of the eCommerce industry. So online businesses need
a direct approach to payment processing. Because eCommerce businesses want
to reach customers globally. And providing international transactions can
be a challenge.
- With
an offshore payment gateway. Online businesses can process international
payment transactions. And they will also accept major credit cards. And
different currencies from customers outside the business’s region. So
these advantages can help eCommerce businesses to attract more customers.
And it enhances sales, and increment in profits.
5.
How can you find a suitable offshore
merchant service provider?
Merchants must find an offshore merchant service provider with a
successful record. And also dealing with high-risk merchants in the same
industry type. They should also include dedicated price support. Moreover,
tools to prevent chargebacks.
- Avoid
extra charges. Avoid an offshore merchant service provider
that works on inflated fees when dealing with high-risk merchants.
- Always
be upfront and honest. Merchants that require offshore payment
processing. So they must clear things with their provider. About their
business nature and operations.
- Check
testimonials from clients. Reviews of previous clients will be excellent
references. About how good or bad an image of an offshore merchant service
provider is. Merchants must study and research their options. And get the
right firm for the business’s requirements.
- See
what they exactly offer. Merchants must go for an offshore services
provider that can provide quality services. An offshore payment service
provider must know how to handle merchant requirements. And also by
providing excellent services such as 24*7 support, troubleshooting, and
maintenance.
- Go
for flexible terms. As business requirements can change at any
time. And selecting more extended contracts or an automated renewal
feature is not right. Merchants should go for the providers who can offer
flexible term contracts.
Conclusion.
With offshore payment processing as a part of transactions and
purchasing. So, the businesses can also provide more options for their
customers. And that may lead to many opportunities to make high sales, an
expanded customer base. And also more success for the business.
So if you want to process your transactions. You can contact us. Because
we will provide you with our best solutions.
Tags : Credit Card Processing, Offshore Payment Processor
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Created on Mar 7th 2022 03:58. Viewed 209 times.