Some businesses have decided to open an offshore account. Some do it to reduce their current tax liability while others use it to set up a new business which means it can be used for legitimate and illegitimate business.
So should you open an offshore merchant account? You should probably weigh first the pros and cons before deciding to do so.
One thing you should know about offshore merchant accounts is that they are high risk. The reason is because of the increasing incidents of fraud around the world.
What is even worse than that is the fact that it is hard to confirm if a sale was made or not.
To curb such incidents which give offshore merchant accounts a bad name, it takes quite awhile before your application can be approved. The bank you have chosen to open the account with will require you to present your proof of identity, source of investment, references from merchants and the name of your current bank.
You don’t just fax a copy of some of the other documents like your driver’s license, social security number of passport but you have to photocopy them and have these notarized.
But despite the red tape and the problems, there are pros to opening an offshore merchant account.
Transactions made through the offshore account are in US dollars so you get the same amount regardless of the exchange rate.