OFFSHORE HIGH RISK MERCHANT ACCOUNT
An “Offshore High Risk Merchant Account”
is nothing but a “High Risk Merchant
Account” that is given by an offshore
merchant account provider.
The risks involved with the “Offshore
High Risk Merchant Accounts” are:
The majority of the sellers of an
account deliver only low – grade
products which are not suitable for you.
In many cases, they just take your hard
earned money and vanish. Such sellers
have no experience in processing credit
cards and hence, are not aware what a
merchant needs. They will just sell this
worthless solution which will be
cancelled by the merchants after using
it for 1 or 2 months.
The new trend that is seen is that the
account providers operate for about 1 or
2 months until you make a good volume of
credit card transactions and then vanish
with all your money and the reserve fund
which should be refunded to you after
six months.
A new scam that has hit this sector is
the processors of “High Volume High Risk
Merchant Accounts” have below standards
reporting system which makes if
difficult for the merchant to check his
balance regularly and also receive his
payments on a timely basis.
A good example would be; a gateway
processor who claims to be situated in
Switzerland shows only seven
transactions with, no “Reporting
System”. This processor charged 8% as
discount rate but kept 53% of the
amount. Then, after 2 months the account
was suddenly closes and all the money
disappeared.
Another quick way that these providers
make money is; charge hefty fines from
Visa or the Master Card. The fines are
actually non – existent or have a much
lower rate. Prior to losing a bank
connection, the bank asks the processor
to change some procedures which the
processor does not do. Therefore, the
bank terminates the merchant account of
the processor, which gives him a reason
to tell his customers for the sudden
closing of the merchant account. This is
the modus operandi of these processors.
If you ask them which bank they were
doing business with you will not get an
answer. These processors do not have any
customer service or for the sack of
luring merchants will have a fake
customer service. But once they close
the account they will not have any
customer service so that you will be
able to contact them and ask questions.
In some cases the processor will have
another company which processes the
transaction. Here, your contract will
have a condition stating that the
processor will not be liable for any
losses incurred. Therefore, if you loose
the money then you have no where to go.
But the good news is, there are a few
good companies that provide the
“Offshore High risk Merchant Accounts”.
Such processors will give you your own
MID account if you pay a set up fee of
about $599.
You can also avail the customer service
that will help you in case of any
clarifications.
Contact
one of our helpful account
representatives to assist you in the
setup of
a
high risk merchant account or
offshore merchant account for a
high risk merchant.
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