Risk of High Risk Business
by: DSS Boxes500 | Total views: 3 | Word Count: 509 | View PDF | Print View
Risk of Offshore High Risk Merchant Account Provider
Have you ever considered getting a high risk merchant account? I would recommend that you get a high risk offshore merchant account as it will significantly help you receive settlements in a tax-free confidential setting.
High risk offshore merchant accounts would give you the benefits of a much higher sales volume. This is because you are allowing all your customers a choice to choose to pay by credit card.
Before rushing off to finding an offshore merchant account provider, I would like to highlight a few points that you need to know.
These are as follows:
• Anonymous merchant accounts cannot be permitted. Even if you use an anonymous merchant account provided by some corporations, the Merchant Account Corporation still may not question you and request for relevant documents such as financial statements to be provided.
• You will need to be informed about the duration of receiving your fund between sales and also how frequent would you be able to receive the funds. Some offshore banking companies pay the funds to the merchant once per week. Some companies might even have a delay of 3 whole weeks before the funds are transferred (which is not unusual). Some merchant account provider may require you to have at least $10,000 to $20,000 each month for the previous three whole months. This also means that before you fill in any form, you must be sure that you are able to hit this quota. This term actually makes it even harder for some merchants to apply for a high risk merchant account.
• If your business experience high chargeback rates of 1%-2%, you can be prepared to have your account closed at anytime. But if you’re lucky enough to have a merchant account provider help you reduce the amount of chargeback, you better cherish this chance to try and improve on the chargeback so that they would not need to close your high risk merchant account. Would you spend your time and invest in a business that is experiencing huge amount of refunds? This applies to such merchant account providers too. So, if a merchant account provider offers to help you reduce your chargeback, I would advise you not to miss out on this chance to work with them on improving your chargeback.
• Some countries have an alarming amount of chargebacks which is considered a fraud problem. Therefore, some of these merchant account providers will block anyone from these countries from applying.
Fraudulent offshore merchant account providers are something that you should be aware of. These fraudulent offshore merchant account providers will hold your money in a chargeback holdback fund.
When you inquire about this problem, these offshore merchant account providers that provided you with a high risk offshore merchant account will then come up with several excuses and use their legal policies to brainwash you into believing that they will pay you in 2 to 3 months time after your initial payment. But in fact, these providers will then close your account and you will never get to see your money again.
About the Author
DSS Boxes is author of this article on high risk merchant accounts. Find more information about offshore merchant accounts here.
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