What Are Offshore Merchant Services and How Do They Work

1. What Are Offshore Merchant Services and How Do They Work? Offshore Merchant Services Offshore merchant services refer to payment processing solutions provided by banks or financial institutions located outside the merchant’s country of operation. These services are particularly useful for international businesses or companies considered high-risk by domestic providers. Who Uses Offshore Merchant Accounts These services are popular among businesses in industries labeled “high- risk” by domestic banks—such as adult entertainment, gaming, travel, CBD, and cryptocurrency. They’re also widely used by e-commerce companies targeting international customers or operating across multiple jurisdictions. Key Features and Benefits One of the main advantages of offshore merchant services is access to multi- currency processing, which enables merchants to accept payments from customers worldwide. How the Process Works Setting up an offshore merchant account typically involves partnering with an acquiring bank in a foreign jurisdiction. The business submits an application along with supporting documents—such as incorporation papers, bank statements, and processing history. Legal and Compliance Although offshore merchant services are legal, businesses must ensure they comply with international laws and regulations. Anti-money laundering (AML), Know Your Customer (KYC), and PCI DSS compliance are commonly required by offshore providers. Get in touch now at 1-800-577-0381 if you are looking for a offshore merchant services