The world is a lot smaller than it used to be. Connected devices and free trade have allowed people to transact business without borders. Every business now has the potential to be completely global from the very first day it starts operating.
Business services are location-independent and manufacturing services have been steadily migrating to other parts of the world. And payment processing is also migrating offshore.
According to Transparency International, setting up an offshore entity is likely to cost less than $1000 and take less than ten minutes. This makes it really easy for entrepreneurs to set up location-independant companies that can attract business from all over the globe.
This has allowed trade to flourish. According to the US Federal Reserve and the WTO, global trade has skyrocketed in recent years. Global merchandise exports totaled $18 trillion in 2014. It’s easier than ever to create a multi-national organization.
While it might be easy to conduct business across borders, transactions are still limited to your location. You business has the potential to expand if only you can offer a truly global payment platform to all your customers. Payment system are the only bottleneck to global trade.
The global financial system has failed to keep up with international trade. Off shore businesses are considered high risk merchants by banks and conventional financial firms.
High risk merchants find it difficult to set up merchant accounts and receive payments from customers. Card payments are complicated by the bureaucracy of different jurisdictions. Banks operate on different time-scales which slows down the process. Not to mention the archaic tax regime in different parts of the world.
The opaque nature of offshore entities and the inability to track beneficial ownership details is what worries the banks. But legitimate business interests are harmed by this lack of trust. Banks either refuse to do business or charge extortionately high fees, regardless of the business model or reputation of the firm.
For an offshore company conducting business in the United States, the barriers to quick and easy card payments are immense. This stifles economic growth and innovation.
Payment providers can offer better solutions to high risk merchants. Including offshore merchant accounts.
An offshore merchant account allows you to transact seamlessly across borders. The transactions are processed completely swiftly and securely. Chargebacks and fraud are reduced and the platform allows you to manage multiple currencies simultaneously.
This payment gateway has the potential to serve as a competitive edge. The quicker payment system allows you to manage cash flows more effectively and offer a quicker service to customers from across the globe.
To sum up, global trade and commerce is rapidly expanding. Opening a multinational business is now easier than ever. But your global business is limited by the local payment infrastructure.
A well-selected offshore merchant account will help you overcome this barrier. Offshore accounts offer a number of advantages that will help your business flourish.