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Article Directory - Advantages of an Offshore Merchant Account

Merchant accounts are necessary for anyone who wants to take credit cards, especially over the Internet. However, sometimes it can be very expensive with fees and deposits to set up and maintain these merchant accounts. By moving your merchant service off shore, however, you can save some money and still experience good service.

Merchant accounts are accounts that are set up to process credit card transactions. These accounts are places where money you make from taking credit cards is deposited. You can transfer this money to your regular business account, or you can leave it in the account and use the account to purchase business supplies. While it would be nice to think that you could do business without accepting credit cards, the fact is that most people prefer to pay with credit or debit card. Accepting these methods of payment ensure that you will have a broader customer base.

The mistaken perception about off shore accounts is not always true. Those operating from the Caribbean, the EU and Latin America are above board. And most provide as high levels of service as on-shore ones at lower cost.

You can realize instant cost savings using offshore merchant accounts. While up-front deposits are a perquisite for all merchant accounts, the offshore ones require smaller deposits up-front. This works to your advantage, freeing up funds to employ in your business.

Security amounts for charge backs provide another difference between on shore and off shore. Each account keeps a certain amount of money held back from your use just in case someone returns an item and there is a charge back. Off shore accounts generally hold back a smaller amount than in country accounts.

It is common practice to pay transaction-handling fees as a percentage of the transaction amount. But offshore merchant accounts charge more than on-shore ones. But offshore accounts still work out more cost-effective, due the savings you make in other areas.

If you, like most business owners, big or small, are looking for tax breaks, then you should head offshore. With an offshore account, you can claim part of your income as foreign income. It will still be taxed but at a much lower rate than your domestic income. A word of caution though, consult your accountant or tax attorney before going offshore, just to make sure you are not breaking any laws.

In this hi-tech of the Internet, you can easily connect to your offshore merchant, from any global location in the world. And the ease of using the Internet to accept credit card payments 24 hours a day is profitable and convenient. Because you go about business, while your offshore merchant account keeps piling up. And optimizing your profits!

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About the author: Vlad Ehrsam writes exclusively for Full Info on Business, it's one of the webs most up to date Business sites, while you're there sign up for the free newsletter.

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