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Offshore merchant account
An offshore trading account (trading account) is a type of trading account available to merchants conducting online business in a non-resident country.
This payment processing option is available to the electronic merchant through its business sites along with other transaction processes.
A common misconception is that an offshore trading account is always associated with a high level of risk, but this is not the case.
Sellers looking for an offshore trading account usually do this because offshore acquirers are much more lenient about opening offshore trading accounts and products and services that can be sold through them, due to moderate laws and requirements for merchants.
This is the main advantage of obtaining an offshore trading account.
At the same time, an offshore bank can even more strictly observe banking secrecy than a bank in the seller’s country.
More about offshore trading account
Bad credit or a business with a high potential for repayment of payments or fraud on the part of customers are typical factors that prevent merchants from obtaining a traditional trading account.
In this case, the business of such entrepreneurs is considered high-risk. And they face great difficulties in obtaining a trading account, especially when they turn to traditional banks and trading account providers.
These financial institutions require the provision of various documents and the history of past credit transactions with banks. This procedure is tedious and often useless for a high-risk business. The entrepreneur receives a refusal.
Thus, an offshore trading account is the most suitable option for such online merchants.
If you intend to consistently expand the sales of your business, open an offshore trading account. This is due to the fact that local account providers may not be able to cope with a large volume of sales.
An offshore account allows you to transfer money to its owner anywhere. Internet companies, such as online pharmacies, gambling and casino sites, electronic money, etc., are likely to benefit from opening an offshore trading account.
We have direct contacts and we can introduce clients to offshore banks to open bank accounts all over the world. These banks offer personal and corporate accounts, including a wide range of services such as Internet banking, international debit card and round-the-clock customer support in many languages.
We offer you the freedom to open bank accounts in various jurisdictions without the need for your physical presence there. Let us accompany you every step of the way. Opening an account takes from 2 to 3 weeks.
Banks will request additional information and supporting documents, and their compliance departments will review the information provided in about a week.
All the banks that we assist in opening accounts offer a full range of online banking services so that you can manage your account and access it via the Internet.
Benefits of an offshore merchant account
The main advantage of obtaining an offshore trading account is that it is easier to get a trading account than with a local trading account provider. Offshore banks have fewer restrictions on obtaining an account for electronic merchants working in high-risk segments of industries such as IT technical support, computer services, etc.
Other benefits of an offshore merchant account
A wide selection of banks.
When you apply to open an offshore trading account, you are offered a large list of banks from which you can choose the one that meets the requirements of your business.
Trouble-free receipt of an offshore trading account.
Unlike applying to open a trading account at home, applying to open an offshore trading account is simple. Application forms are available on the providers’ websites, which saves you time.
You can expect to get results in the shortest possible time, as well as to create a real account. The banking policy and rules in offshore banks are less strict, so companies with a high level of risk usually prefer an offshore account.
Multicurrency transactions.
If you run a business serving international clients, you clearly need an offshore trading account. With an offshore trading account, you will be able to accept payments in different currencies in real time.
Secure credit card processing.
Now you don’t have to worry about leaking your clients’ confidential financial data. With the advent of online payment gateways, accepting online payments to offshore trading accounts has become secure.
Real-time information.
You receive real-time information about transactions made on your account.
Global expansion.
By getting an offshore trading account, you get the opportunity to expand your customer base around the world. You have the opportunity to promote your business all over the world.
Low taxes.
Taxes are not sparing. They apply to everyone. Trading accounts are no different. However, by obtaining an offshore trading account, you will significantly reduce your tax liabilities.
Commissions are significantly reduced. You will receive various tax benefits in accordance with the tax requirements of the country where the offshore bank is located, compared to a trading account in your country.
Processing of offshore credit cards.
You will be able to process payments in various currencies using offshore credit card processing.
No restrictions on the volume of transactions.
For the most part, offshore banks do not prioritize the number of transactions per month, which allows your business to maximize profits and unleash its maximum potential.
The limitations of an offshore merchant account
American courts have ruled that a business operating in an offshore zone, but with American servers, can be taxed as a presence in the Country of Freedom.
However, opening a trading account for your offshore company in the USA can also create problems. After all, if you work offshore, you have to be completely offshore, right?
The tax service thinks so. Just the other day, I had to endure 49 minutes of waiting on the line and talking to an IRS agent, who repeated everything that my friends tax specialists and lawyers told me.
Unfortunately, the American market for processing trade transactions is the best in the world.
Innovations in this area have led to the emergence of players such as Gumtree, Stripe and Square, which allow you to create a trading account in a matter of moments. It’s very simple, and many new online business owners use these tools to process credit cards.
But all these solutions require a Social security number or a US tax ID. And according to the new Obamacare rules, these trade service providers are required to submit all kinds of forms about your business to the tax service annually.
Not a very successful plan to take advantage of your offshore business.
As a result of this ruling, service providers are shutting down offshore companies that used American banks to process credit card transactions. This means that while it is becoming easier to get a trading account in the US and other high-tax European countries, it is becoming increasingly difficult for offshore corporations to do the same in their jurisdiction.
Thanks to the “Land of the Free” and FATCA for closing many opportunities for offshore business.
Do you really need an offshore merchant account?
It is possible that you can make some changes to your business to keep your income tax-free or low-tax.
For example, more and more shopping carts and online tools allow sellers to accept bitcoin and other cryptocurrencies as payment.
Coinbase and other services allow you to integrate their code into the shopping cart to accept Bitcoin from buyers. If you have clients who use bitcoins, then this is simply necessary.
Bank payments are a more outdated, but still practical way of accepting payments. If you run a consulting firm, sell expensive goods, or sell to other companies, there is a chance that you can convince them to send you a bank transfer.
Both of these solutions allow you to completely dispense with trading accounts. If your offshore company has a bank account in a “real” bank, you may even be able to accept checks in several currencies, provided that you are willing to wait several weeks for them to pass customs clearance.
Why Choose Wellcoinex
Regardless of the size or type of your business, from small startups to large corporate organizations, Wellcoinex, headquartered in London, serves your business with offshore trading accounts designed specifically for your business.
Key benefits of getting an offshore trading account from Wellcoinex
Sellers doing business with a high level of risk have a high probability of approving an application for opening an offshore trading account.
Our approval process does not take much time.
For businesses with or without bad credit, we also open an offshore trading account.
When processing a credit card, there are no restrictions on the volume of transactions.
Low tax liabilities.
Obtaining new income and entering new foreign markets is possible for business owners with the help of offshore trading accounts. Sell in new international markets and expand your online business by opening an offshore trading account with Wellcoinex.