Offshore Credit Card Processing – 5 Things You Should Know

This article will let you know everything you need to know about offshore credit card processing. Only proceed if you want to take your business to the top. Now that you have proceeded, let’s start with some questions. Do you run an offshore business? Is it a high-risk business, low-risk, or e-commerce? It seems like you want to make its transactions smooth and safe. Right? If the answer to all these questions is a ‘yes’, we have something beneficial for you.

Yes, you heard it right. It won’t sound surprising to us if you have already heard about offshore credit card processing. How can a thing so beneficial not get popular? There’s no doubt that offshore credit card processing has already reached many offshore business people. But still, there are some business minds, like you, who want to know everything about offshore credit card processing before choosing it for their business.

As the competition is increasing endlessly in the business world, it is not enough to keep your business limited to a single locality. Companies are going International. Thanks to technology and modernization, companies are opting for new ways to do transactions as it will facilitate everyone around the globe to buy products and services wherever they are.


If your enterprise aspires to expand its coverage to overseas areas, it needs new techniques to do transactions. Offshore credit card processing will get you covered there. Offshore credit card processing, also known as offshore merchant credit card processing, is available for high-risk offshore businesses or e-commerce to do smooth payment transactions. When talking about an offshore business, it means that the location is not in one’s home country. Finance and banking fields use this term commonly when a business uses an International account for financial transactions. Payment processing, on the other hand, is applying for a credit card by a high-risk merchant.

We can say getting your business an offshore credit card will ensure smooth overseas financial transactions. You should know that the company or entity that provides clients an offshore credit card is an offshore credit card processor or an offshore merchant credit card provider.

You must choose offshore credit card processors from as they can have a significant impact on your business. A genuine offshore credit card processor can also serve your business as a consulting expert for your business. You must be thinking about whether offshore credit cards or international merchant credit cards are similar or not? Well, the answer is no. They are different. Businesses with high risks get an offshore merchant credit card, given that they must be classified as high-risk businesses by the US acquiring banks. While, on the other hand, any high-risk or standard business, which wants to do e-commerce worldwide, can get an international merchant credit card. Now, let’s talk about the five things which you must know before applying for an offshore credit card-

5 Things you Should Know about Offshore Credit Cards Processing


1. Benefits of using an offshore credit card

  • Multi-currency payment options in transactions – An offshore credit card avail businesses to do a transaction or accept payments in multiple currencies. As the world of e-commerce is increasing endlessly, businesses can protect themselves from cart abandonment issues with the help of an offshore credit card.
  • Safety measures – An offshore credit card helps strengthen stringent security standards. It works as a protective layer for businesses to protect them from chargebacks and frauds. They use safety measures, including address verification systems, fraud management, 24/7 customer support, and screening systems.
  • Reducing expenses and promoting profits – An offshore credit card reduces expenses as it cuts the operational and processing cost. Besides this, it’ll also reduce lower taxes and foreign exchange charges. On the other hand, it will help the business gain profits as multi-currency payments will attract repetitive sales.

2. How does offshore credit card work

We can understand the process by taking a consumer who wants to pay through a credit card. He’ll need to log in to the merchant’s online website or portal, where he’ll have to fill in some details. The data will be transmitted to the merchant’s bank, further transferring the information to the credit card network for its verification.

Then, it will route the transaction data to the consumer’s issuing bank, which will either approve or decline it. The interchange will transfer the conclusions to the merchant’s bank. The processor will then transfer the information to the customer. If approved, the issuing bank will shift the fund to the merchant’s account. It seems lengthy. Isn’t it? Well, in reality, it’s only a matter of a few minutes or seconds.

3. Types of businesses eligible for offshore credit cards


  • High-risk businesses – A high-risk business is prone to more fraudulent transactions. They should be classified as one from the banks’ view as they always bring potential chargebacks with them. Some of the examples of high-risk businesses are gambling, cryptocurrency, tobacco, etc.
  • Low-risk businesses – A low-risk business can only get an offshore credit card if its chargeback ratio is low. Some of the examples of these businesses are restaurants, beauty products, etc.
  • E-commerce businesses – E-commerce companies also fall under the high-risk category. As e-commerce deals with worldwide clients, they need an offshore credit card for it.

4. Tips for finding an offshore credit card provider

  1. You must always look for a proven efficient provider and display a proven track record of success in this field.
  2. Always choose an offshore credit card provider who doesn’t charge extra charges when trading with a high-risk client.
  3. Make sure to choose a credit card provider who ensures transparency and honesty.
  4. You must first go for a deal with shorter and flexible terms.

5. Terms and rates for acquiring an offshore credit card

The rates for an offshore credit card differ with the area where the acquiring bank is placed. It will save your money if your client is located in the same area as the bank. You can go for daily transactions if you’re a high-volume merchant, unlike low-volume businesses where you have to adjust with weekly settlements.

Now, you know everything you should know about an offshore credit card. Knowing these five things can help you make the most of your offshore credit card. So, don’t miss the opportunity. Get one today.

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