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The Pros and Cons of Offshore Merchant Accounts

Like anything, there are pros and cons of an offshore merchant service. If you are considering this type of service you will want to look into all of the facets of the service to determine if it is something that is right for you and your business. While this type of service is wonderful for some, it isn’t the best fit for others. There are some obvious pros and cons that you may want to consider before you make your final decision.

One of the most obvious cons of an offshore merchant account is that they are considered high risk. They are considered high risk because they are quite prone to fraud and this is because the businesses that use these accounts do most of their business online. When do you do business online it can be difficult to determine at the end of every day which transactions are valid and which are not. Many hackers spend time online just waiting to take advantage of this type of business and the fact that transactions can go unnoticed. The fact is that when you accept credit cards online you can only do so much to ensure that you are protecting your information and the information of your clients. If you are aware that hackers can and sometimes do get a hold of personal information you can balance this con by being aware of all activity being processed with your offshore merchant account.

Because fraud is so prevalent with this type of service, another downside of one of these accounts is that it can take quite a bit of time before your business is approved for an account. The reason for this is that merchant account providers like to investigate the companies that they provide accounts for, as this helps to safeguard against the prevalence of fraud. Because of the existence of fraud the costs associated with offshore merchant accounts can also be very costly when you are approved.

While is seems like there is a lot of fraud associated with offshore merchant accounts, there are some pros that make these accounts the choice of many business owners. Adult websites and other money making ecommerce websites find that this is the best way to accept credit cards online without having the site go down. While there is a chance of having the account hacked, many combat the risk with protective software and know how that will allow them to receive their funds with a limited risk of fraud and hacking.