Nowadays, on a growing momentum of development, many eCommerce firms are exploring their business activities around the world to fulfill global requirements. The mainspring of global eCommerce usually initiates with the help of an offshore payment gateway.
Offshore payment gateway | what does it mean?
Offshore is a term signifying a location outside of the country where the business is based. When it reaches the finance and banking services industry, offshore is identical to international services that facilitate clients to find the service outside the region where their main headquarters are situated.
The offshore payment gateway has become a common payment service for global eCommerce companies in current years. Cross-border business is the main benefit of eCommerce, and international organizations may rely not only on local dealings but also on international orders. As an output, online businesses should integrate an offshore payment gateway into their websites for abiding credit/debit cards or digital payments from their customers beyond the operational areas.
Why do eCommerce businesses select offshore payment solutions?
93% of global online businesses will select offshore payment gateway services for their eCommerce business. What benefits of the offshore payment gateway that the majority of eCommerce companies presume at the top of their minds?
Top advantages of an offshore payment gateway:
Transactions processing volume. Some offshore payment gateway providers equip clients with a higher volume of transactions compared to local companions. So, the rate of rejected transactions can be reduced and improve your sales.
Multi-currency favor. A customer can perform an online payment in their native currency by an offshore payment gateway. Accepting payments online from various currencies can help you in expanding your business. You can also expand your business globally with the integration of a safe payment platform.
Multiple offshore merchant accounts. It is a nice concept to open numerous offshore merchant accounts with banks across the world. You can handle all payment processing accounts from a single control panel and thanks to a single plug-in of the offshore payment gateways. On a transnational or particular account basis, reporting, accounting, and chargeback processing data are all conveniently attainable.
Diverse jurisdictions have distinct regulations. If you strive to focus on some targeted markets, you may profit from foreign policies as compared to your regional market. It is not only about tax policy but also other rules and regulations from foreign governments and foreign trade rates. All the characteristics of distinction in regulations promote more trade and commerce.
Process numerous credit/debit cards. Card acceptance rates are more heightened when processing via acquiring bank that situates in the customer’s areas. With an offshore payment gateway, businesses can assemble various credit/debit cards from Visa, American Express, Discover, MasterCard, and JCB.
Reduce operating expenses. International business periodically needs the business to open its attendant office overseas. And that can lead to an additional execution cost. Consequently, for the first step of going global, online companies should operate offshore businesses with an offshore payment gateway and execute business from their native countries to relieve expenditures.
How does the offshore payment process?
An offshore payment processor will provide you with a payment gateway that allows the processing of business transactions to a foreign location. This is where offshore credit card processing companies perform their part. Most customers use the new set of cashless payment modes.
Merchants can receive the funds through an offshore payment gateway and here is the process.
For example, a customer is paying by using a credit card. Customers will log on to the merchant’s website and fill in the required details like credit cards, debit cards, net banking, or any other payment mode.
The data will be forwarded to the merchant’s bank and then the data transmits to the credit card network for verification.
The credit card network sends the transaction details to the customer’s issuing bank.
Then the issuing bank will approve or decline and deliver the results to the merchant’s bank and the processor will forward the details to the customer about the transaction results in real-time through the merchant’s website.
After approval, the issuing bank will transfer the amount to the merchant’s bank by using a credit card network. Automatic receipts are also sent to both merchants and customers and this process takes a couple of minutes or even seconds.
Who requires an offshore payment gateway?
Offshore payment gateway is used in the territories that come under the high-risk category.
High-Risk Vendors. A high-risk merchant is a reputed business that has the essence of obtaining fraudulent transactions. High-risk merchants are also classified by the banks because these enterprises have chargebacks, frauds, and various refunds. So High-risk merchants carry high sales volume, bad credit card scores, and also non-compliance with security rules. These risks tend to charge merchants higher fees or can also preclude them from future transactions but not all high-risk merchants are considered illegal.
Some businesses that come under the high-risk category are:
Cryptocurrency
Blockchain
Finance
Travel
Online Pharmacies
Weapons
Low-risk merchants can also get an offshore payment gateway if their chargeback volume is high. Some examples of businesses categorized as low-risk are retail, beauty products, restaurants, etc.
eCommerce Businesses. An eCommerce business can also come under the high-risk category because of the expansion of the eCommerce industry. So online businesses ought a direct path to payment processing because eCommerce businesses want to reach customers globally and furnishing international transactions can be a challenge.
With an offshore merchant account. Online businesses can process international payment transactions. They will also accept major credit cards and different currencies from customers beyond the business’s area. So these advantages can help eCommerce businesses to tempt more customers and it enriches sales, and increment in profits.
Get a suitable offshore payment services provider
Merchants must find an offshore payment gateway provider with a prosperous record and which also trades with high-risk merchants in the same industry type. They should also include reliable price support. Moreover, tools to prevent chargebacks.
Avoid extra charges. Avoid an offshore merchant service provider that functions on augmented fees when dealing with high-risk merchants.
Always be upfront and honest. Merchants that require offshore payment processing, must clear things with their provider concerning their business essence and operations.
Check testimonials from clients. Reviews of previous clients will be excellent references about how good or bad an image of an offshore merchant service provider is. Merchants must study and research their options and then get the right firm for the business’s requirements.
See what they precisely offer. Merchants must go for an offshore services provider that can provide quality services. An offshore payment service provider must know how to handle merchant requirements by providing excellent services such as 24*7 support, troubleshooting, and maintenance.
Go for flexible terms. As business requirements can change at any time and selecting more extended contracts or an automated renewal feature is not right. Merchants should go for the providers who can offer flexible term contracts.
Conclusion
With an offshore payment gateway as a part of transactions and purchasing, businesses can provide more options for their customers. That may lead to many opportunities to make high sales, an expanded customer base, and also more success for the business.
HighRisk Gateways are one of the leading payment service providers with great expertise in the respective sector. So if you want to process your transactions you can contact us because we will provide you with our best solutions.