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Offshore merchant accounts Derricks

1 April, 2013



Offshore merchant accounts

Even though Offshore service businesses are highly profitable, the controversies surrounding them are plenty. The risk content of such a business is normally considered as extremely high. This risk-proneness has resulted in labeling the Offshore merchant account services as a ‘high risk’ business and the relevant account as a ‘high risk Offshore merchant account’. These tags tend to make majority of the domestic Offshore merchant account providers skeptical enough to totally reject the Offshore service vendors that apply for their own offshore merchant account.

Categories of Offshore Businesses
There are two options for remitting the membership fees in the Offshore service related businesses. The first is a monthly or recurring membership in which the laid down fees are received every month. The other type is the one-off method that involves onetime payment of a specific amount.

Both the categories have their pros and cons. The monthly membership fees pattern guarantees a sizeable income every month. On the other hand, the one-off types can be instrumental in forming a good clientele base. A group of loyal customers can always bring excellence and esteem to any business. Due to these very reasons, the Offshore services providers always prefer to have both the types in their fold for maximizing their income.

Need for an Offshore merchant account
Even though Offshore service businesses are highly profitable, the controversies surrounding them are plenty. The risk content of such a business is normally considered as extremely high.
This risk-proneness has resulted in labelling the Offshore merchant account services as a ‘high risk’ business and the relevant account as a ‘high risk Offshore merchant account’. These tags tend to make majority of the domestic Offshore merchant account providers sceptical enough to totally reject the Offshore service vendors that apply for their own merchant account.
Categories of Offshore merchant accounts

There are two options for remitting the membership fees in the Offshore service related businesses. The first is a monthly or recurring membership in which the laid down fees are received every month. The other type is the one-off method that involves onetime payment of a specific amount.
Both the categories have their pros and cons. The monthly membership fees pattern guarantees a sizeable income every month. On the other hand, the one-off types can be instrumental in forming a good clientele base. A group of loyal customers can always bring excellence and esteem to any business. Due to these very reasons, the Offshore services providers always prefer to have both the types in their fold for maximizing their income.
Problems in Getting an Offshore merchant account
We already know that not many merchant account providers show keenness in approving an Offshore merchant account for an Offshore service provider. In case a few agree, the charges demanded by them are astronomical extending up to 20%. Any Offshore service provider will have considerable problem in paying the account provider 20% of his profit.
He either has to increase his price or lower the quality of his services to maintain his usual margin of profit. However, compromising on his quality or raising the price will certainly result in loss of customers and consequently adversely affect his bottom line. All this will warrant that he finds an appropriate method quickly that will help him to conveniently accept his payments online.

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August 11 2010 08:51 pm | Uncategorized

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