Foreign markets contain 80 percent of the world's purchasing power, and you're limiting your company's potential if you choose not to use offshore merchant processing. Marketing your goods or services to domestic consumers is an excellent starting point for a growing company. It's critical to harness the potential of foreign consumers for sustainable growth.
Starting an offshore merchant account provides several benefits to your brand that you must pay attention to. It's the best path if your brand is considered high-risk in your home country. You're also walking the safe way to expand operations into foreign markets.
Fortunately for your business's future, you've discovered this comprehensive guide to the six things to know before working with an offshore payment processor. Continue reading to take the first steps toward expanding into global markets today!
1. Perfect for High-Risk Businesses
One of the most significant reasons businesses seek offshore merchant processing is to circumvent strict rules regarding high-risk companies. It makes sense if your business has plans to sell goods to foreign markets. The advantages start with higher acceptance rates for foreign credit cards and better tax rates on your profits.
You'll also get favorable terms from the merchant industry. Cross-border transactions are much more affordable for your brand. Many brands in the United States find that an offshore payment processor is the only way to accept payments for goods sold.
It's a terrific solution for businesses doing more than $50,000 in business per month. You'll also get around the need for a domestic merchant account. Getting categorized as a high-risk business will no longer hold you back from achieving success in new markets.
Consider working with processing services like https://merchantaccounts.online/ if you work in an unstable industry. The airline and concert ticket industries are perfect examples of companies that should hire a payment processor.
2. Not All Countries Are Created Equal
It's also critical to remember that not all countries and markets are created equal. The choice of location for your merchant processor significantly impacts your success and the perks you'll enjoy. Some larger companies will have an acquiring bank in each country they sell to.
If geography isn't an issue, there are several factors to seek when choosing offshore merchant processing. Find an option that fits your business's processing needs. Multi-currency processing is best if you plan to expand into more foreign markets.
It's also worthwhile to consider the tax rates. You can save significant money by researching the best offshore merchant account. You'll pay less taxes and have more money to invest in your brand.
Security and data privacy are vital features in an offshore payment processor. Criminal cyber attacks cost US businesses over $7 billion in losses in 2021. A secure offshore processor will protect your data and maintain your privacy.
Customer support is an overlooked component of choosing a service provider for offshore processing. It's best to find a service that offers customer support in your native language. You'll enjoy a much more straightforward communication process.
3. Data Security Is the Priority
Data security is the name of the game when comparing your options for an offshore merchant account. The benefits you'll enjoy are negated if the service can't keep your data secure and private. You risk losing millions of dollars if you make the wrong choice for a service provider.
Credit card processing is risky for your brand to begin with. Each transaction requires the transfer of sensitive financial data. These transactions also use borrowed funds.
Lax regulations and corruption are real risks when working with foreign markets. Those risks are multiplied when credit cards are thrown into the equation. Avoid the potential for a data breach by working with an offshore payment processor with tight security.
Offshore merchants in Europe are an excellent starting point. You'll enjoy the highest level of security for your e-commerce brand. It's the best path toward peace of mind when expanding operations to new countries.
The high processing limits and favorable returns are perfect for US-based businesses. You'll keep risks for security and data to a minimum.
4. Seek Top-Notch Support
The best service provider will go out of its way to ensure you have the best support possible for your brand. Working with an offshore payment processor that lacks adequate support results in a frustrating experience for a new business owner. Research your options with online reviews and forums to find the best fit for your growing company's needs.
Should something go wrong, you must find a provider to help and communicate with you. A disagreement with a foreign bank could turn into a catastrophe. A top-notch service provider will work with you to resolve the issue and ensure you receive the money you're owed.
5. Explore Fee Structures
Your options for offshore merchant accounts will provide different fee structures you'll need to consider. Some offer fixed rates, while others provide tiered rates for using their service to process payments. Explore your options and weigh the benefits of each fee structure to find the best fit for your business operations.
6. Have the Necessary Documents
You can only open an offshore merchant account with the proper documents. The documents the offshore merchant processor requires differ from what you'd use to open an account in your home country. Opening an account is similar, but you need the proper documents to proceed.
You'll need ID documents, a certificate of incorporation, business bank statements, and processing history to proceed. Get your documents together before applying to work with an offshore merchant processor to expand into foreign markets.
Consider Offshore Merchant Processing for Your Brand
Offshore merchant processing is an incredible way to expand your e-commerce business into foreign markets and access new consumers. You'll need the proper documents to apply, and it's best to explore the fee structure that fits your budget and needs. Prioritize security for your data when choosing an offshore payment processor.
Expanding a business requires research and hard work, but the dividends are worth it. Check out more of our Business blog content for the best tips and advice to expand your company today!