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Things to consider prior to setting up an offshore incorporation

Author: Paul Staple
by Paul Staple
Posted: Jul 13, 2017

Prior to setting up an offshore business or signing up for an offshore merchant account, it is important for merchants to fully understand all the potential aspects of it. Before you sign up for an IBC formation or avail merchant processing services from an overseas bank, you must acquire detailed information of the jurisdiction, advantages it will offer, its merits and demerits. Here are a few things to consider while moving offshore.

High Minimum Processing Requirements

One of the best things about offshore merchant accounts is that they don’t have a sales maximum. However, it can often be bothersome to have a sales minimum enforced. Many offshore and international banks often demand a high monthly minimum. Now, this can be due to two reasons - they want to earn a substantial profit and secondly, they want to ensure that particular incorporation isn’t just getting the highest risk transactions each month. Now, these minimum requirements might be hard for merchants to fulfill. So, it is recommended to do a good research on all the offshore banks before making the final call. Look for the type of account, services and all other related aspects for a better offshore setup.

Limited Legal Resource

In the U.S., there is an entire body of law dedicated to protecting businesses operating within the country. However, when you set an offshore incorporation and set up high-risk merchant accounts, the relationship with the offshore bank would be subject to the laws of that jurisdiction—which may not be as stringent about protecting merchants as domestic law.Now, collaborating with a reliable merchant account service providers can help you get ease in picking a jurisdiction which best matches your customized need.

Locating a Reputable Service Provider

In present day scenario, picking an offshore location and choosing up e-check processing service isn’t as difficult as finding a reputable service provider to work with. As a merchant willing to move your business offshore, you need to know few signs to look for in order to locate reputed merchant account service providers.

  • As a merchant, you need to take all service providers’ claims with a grain of salt until you have seen some actual proof of their promises.
  • While looking for a service provider, you should choose one with a reputable and proven record of providing quality services.
  • A notable service provider will be straightforward about the fact that there is always a potential risk for fraud and chargeback while dealing with e-commerce payments. So, ask them how they deal with such issues. A service provider who claims no fraud liability cannot be trusted at all.

In conclusion, it is quite important that as a merchant you should know what you are getting and at what cost before making the final call. From selecting the type of merchant account to picking up right processing services for your offshore business, each and every little aspect is vital for your business growth.

About the Author

Liberty Enterprises offers a wide array of offshore and US domestic credit card and Ach/E-check merchant solutions.For more visit www.confidentialbanking.com

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Author: Paul Staple

Paul Staple

Member since: Jul 18, 2016
Published articles: 53

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