Since 2001, the team of industry veterans at Performance Card Service has been helping to create profitable, long-term relationships between merchants and payment processing companies. All our high-risk domestic and offshore merchant account providers offer cutting-edge fraud prevention technologies, aggressive risk management departments and precise underwriting criteria — while maintaining some of the highest approval rates in the industry.
High-Risk Merchant Processing
Often, U.S.-based payment processors will not work with high-risk merchants, and the business is forced to seek other payment methods like eCheck or wire transfer. However, if the success of the business rests on accepting credit card payments, the merchant can choose to move offshore. Performance Card Service works with payment processing companies that offer high-risk domestic merchant accounts as well as eCheck and ACH processing.
Offshore Credit Card Processing
Offshore banks, found in many locations including China and South Africa, often allow a merchant to process cards without a specific incorporation in that jurisdiction. While offshore banks usually approve a higher-risk merchant, they still require the usual KYC (Know Your Customer) documents. These processing solutions often do not limit capacity, so higher-volume companies sometimes find them helpful for fast growth.
Frequently seen as saviors to hard-to-approve merchants, these processing solutions have their own set of limiting factors of which you should be aware:
- The funding cycle is usually weekly but with 1 – 4 weeks in arrears, your cash flow can be greatly affected by this delay, and so you must plan ahead.
- These banks normally convert currency from their local currency to your local currency, which means that customers may see a currency conversion on their credit card statement. Be sure to properly inform customers about this at checkout.
- With an offshore bank, a processor may use a generic descriptor instead of a more custom one that is easier to recognize on a credit card statement. You can avoid problems by making your customers aware of this at checkout.
- Make sure that your offshore bank is a reputable company. U.S. law does not govern your bank and processor; therefore, you should recognize the potential risk that something may happen and funds could be held.
- You may face a higher rate of declined transactions than if the bank were U.S.-based. Many customers’ card-issuing banks have strict fraud-scrubbing features in place and will automatically block transactions initiated in another country.
High-risk merchants must recognize and understand all the factors of running their business while utilizing an offshore bank and processor. Partnering with the right adviser helps you properly prepare your business for the future. The experts at Performance Card Service are here to match our clients to the right merchant account providers.
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