Secure An Offshore Bank Account To Assure Continuing Viability Of Your High Risk Business

by Confidential Banking #1 Merchant Processing Services

Could your high risk business pull through in the market if the bank decided to suddenly cancel your merchant account? What are your backup plans to protect your business against losing your payment processing capabilities? Diversification of your high risk payment processing is a pretty straightforward strategy that can help you safeguard your business interests in the long run.

Merchants that are classified “high risk” by banks and other financial institutions must set up multiple accounts, including an offshore merchant account, to protect their business operations from being shut down forever. In other words, establishing an offshore bank account is vital for assuring the continuing viability of a business.

There are a ton of instances of merchants failing to retain their payment processing accounts; money that is urgently required for managing the business operations being held by the processing bank as a preventative measure against any possible charge-backs. Even if the merchant has never had a charge-back in the past dealings, the money will be kept in the bank’s custody. Without an offshore bank account, these merchants may have no choice left but to shut down their doors.

Single High Risk Processing Account is Dangerous to Merchants

Merchants with a good payment processing reputation may think that a bank will keep on processing their payments as long as their business account is in great standing. Well, that is not entirely true! Banks may [suddenly] decide to break off all payment processing services for a merchant even if they have good standing. Here is why that might happen:

The most common reason for the cancellation of a merchant processing account is when the account is not managed properly by the merchant. The merchant may have an unusually high number of charge-backs, refunds, or consumer dissatisfaction cases. These things could very well compel the bank to either scratch the account in short order or put high risk processing restrictions or reserves on the merchant account.

Even merchants that are not traditionally considered “high risk” may have to deal with this problem at times. For instance, common sense indicates that banks would be happy with fast growth as it brings them more business. Though, in reality, the opposite may be true. Businesses that demonstrate explosive growth can easily find themselves getting classified as high risk simply because they are expanding too fast. High volumes of processing can often lead to account cancellation or imposition of large reserves.

The ability to quickly switch the payment processing to an offshore merchant account is crucial for a business’s continued functioning.

Merchants sometimes wonder why they should set up a high risk merchant account offshore when they can get one here in the States? The answer is as simple as the adage, “Do not put all your eggs in one basket.”

With the changing political and economic conditions around the world, an offshore bank account diversifies the high risk payment processing; it is your ace in the hole to ensure that your business is protected all the time.