Merchant Account Payment Gatways
 |  |
High Risk and Offshore Merchant Account
Whenever there is a financial transaction that involves a cheque or credit card, whether it is online or in-person, there is a service charge for the company that accepts the payment. However, some companies are charged at higher rates than others for each transaction. These companies are commonly referred to as high risk merchants as they often do most of their business online.
Conversely, low risk merchants are those that do their business in the flesh and actually swipe the credit or debit card and save a copy of a signed customer receipt. As you might expect, this record helps companies cut down on transaction disputes, refunds and chargebacks. But online businesses do not have this luxury. In the next few paragraphs we are going to discuss high risk and offshore merchant accounts and how they can reduce service fees and transaction costs.
Offshore financial centres have been attracting international investors at a record pace for many years now. We are talking of course about banks, trusts, foundations, hedge funds and insurance companies.
The investment numbers for these offshore accounts is quite staggering. Recently, it was estimated that nearly sixty per cent of all global wealth has been deposited in offshore accounts. There are a number of obvious benefits to offshore investment, which include legal, tax and rights of privacy.
However, because offshore accounts are considered to be high risk accounts, transaction and transfer rates are incredibly high. And while this might not be a major concern for small investors, for companies who are transferring millions of pounds at a time and for the financial institution that accepts said funds, it certainly registers. That is why it is important to locate a merchant account service provider that has invested in advanced security features, which can minimise the number of chargebacks and may, in fact, lower your transaction rates.