The Era of Ecommerce

Applying for an offshore merchant account doesn't mean you have to fly an airplane to go offshore, literally.


Ecommerce is a good business avenue if properly used. Its origins date back to over 30 years ago and the benefits are endless. You just have to familiarize yourself with the basic inner workings. Offshore merchant accounts and ecommerce have an undeniable link.

The roots of doing business without actually standing in the conference room making a presentation, and then having coffee after and waiting for days for a mere yes or no.

Thanks to the birth of ecommerce.

Give in to the feeling of curiosity, for further concepts, read the whole article :

The Era of Ecommerce

Presenting the candidates for an offshore merchant account

Offshore merchant accounts are still a distant concept to most people. Many have a preconceived notion that “scrupulous” businesses are the ones who jump in to the offshore merchant account ship. This is an overstatement in a certain sense. Given the basic premise, the idea of an offshore merchant account will be anything but “scrupulous”.


Here's an overview of business that normally opt for an offshore merchant account, just to give you a head start:

● online pharmacy

● online gambling

● travel

● adult website

● telemarketing

● dating service

● escort service

● multi-level marketing


For a comprehensive observations on these businesses, read the whole article:

Presenting the Candidates for an Offshore Merchant Account

A Behind-the-Scenes Look at Third Party Processors

If you're still in doubt who to turn to for a smooth integration of your offshore merchant account, then turning to a third- party processor is one of avenues you can seek for assistance.


Just for a quick overview, you set up an offshore merchant account in order to accept credit card payments over the internet. There are a couple of ways by which you can the setup:


● Contact a merchant account provider

● Contact a third- party processor

● Contact foreign banks through the internet or do overseas telephone inquiries


The role of a merchant account provider has been emphasized in recent articles. So, for this time, a ray of light will be shed on third-party processors and their role in an offshore merchant account.


Here are the main characteristics of a third party processor:

● Your business' processes will be under the name of the 3rd party processor.

● Your customer's credit card statements have the third party processors name on it.

● Disputes are made through the 3rd party processor and not the processing bank.

● Your business and customers have limited protection from being ripped off.

● You will be using the third party processors' checkout system

● There will be no fixed monthly fees.

● Some may have setup fees.

● Most have high processing costs

● No contracts involved

● Your business is partially liable for the transactions that the third party processors process.



Let me give you a run of the inner workings of a third party processor. First, after you have been approved and apaid your dues, you can now create the shopping carts containing your products and link in which your customers will click to make their purchases. These links are connected to the third-party processor's server, this is where they manage the product orders for you. Third party processors can process electronic checks and credit card payments, and even ordering over the phone.


After the purchase is confirmed, the sale is automatically credit to you, of course, which the third party processor's part has been collected. Confirmation of the purchase includes Address Verification Service (AVS) that matches the shipping address keyed in by the customer to the registered mailing addresses in their credit cards or checks.


Your profits are forwarded by the third party processor at a scheduled time that you agreed upon. It is appealing to note that they will only collect their part of the bargain when your business makes a sale. Seems like a fair deal, isn't it? But, of course, you will always want a sale, do you?


Just for a quick run down on third party integration, you create third party processor account, then you set up your business' website, then you integrate your website with the third party processor's system, then you do a test-drive and run a real transaction, lastly, when everything proves to be hassle-free, you go live.


It is safe to say that the process in dealing with third party processors has a less-complicated structure, but the difference is in the ordering. The things with them is, they handle the purchases first hand then gives you your part of the sale. Parting words, getting their services is a choice, you examine if you feel secured and comfortable. You always have choices, choose what best suits you.

Must-haves of an online store

Your offshore merchant account is an invaluable tool making your business successful. Through an offshore merchant account, you'll be able to accept credit card payments online. But what does it actually take to set up one?

Just like any standard business setting, there are a number of requirements you need to comply in order to actualize your offshore merchant account.


Below are the requirements for setting up a website offshore merchant account:

● registered website on the application must be “live”

● “doing business as” (DBA) indicated on the application should be the same on website

● products, delivery method, delivery time frame and prices must be indicated

● prices should be in US currency

● business privacy policy should be published

● customer service hotline should be indicated

● shopping cart must be active and secured

● domain name should be legally registered under merchant


When you indicate in your application that “www...” is the corresponding website for your merchant account, it should be accessed real-time. The website should actually exist, not “under construction” or “will be coming soon”.


The DBA should be the same as well. There shouldn't be a different name on the website and on the application.
Not a single letter should be missed or added.


The actual images of the products that you sell should be published on the internet as well. If not, then what's the point in selling online, right?. Also bear in mind to indicate the price of the products, the price, the shipping method, and also the number of days that the shipping of the products will take to get to your customer.


Even though you have multinational target market, tag your products in US dollars. This is an indication that you are competitive, for the US dollar is the most widely-used currency in international transactions.


Your company's privacy policy should be indicated at the website as well. Admittedly, most people don't read it, but it is a requirement so that you let them know what are processes in ensuring that the website is secured, after all, it it being viewed by people on every corner of the earth with internet access. Also, this is showing both of your rights and obligations as a merchant and the rights of the customers and the viewers of the website.


As we all know, making sure that our customers are continuously extremely satisfied. But, let's face it, there will always be grievances and inconveniences that they will feel. So, having a 24-hour customer service telephone number will be a reflection that your business is serious and committed in serving your customers and potential customers. This is a requirement to protect and ensure the rights of your clients to a fair service.

A shopping cart is the main selling point of your website. Since you are a merchant, you must establish a shopping cart that displays your products with the corresponding prices. A shopping cart makes it convenient for your customers to purchase as the product is just a click away. Technically, not a click away, because they'll have to wait for the item or items to be delivered. But, it saves them the time and energy to go to the store and tirelessly choose on the displays on the racks.

Lastly, you should have a registered domain name for your website. The names should be assigned by domain name registrar duly licensed by the Internet Corporation for Assigned Names and Numbers (ICANN) or by any other national ccTLD authority to register Internet domain names.

It is crucial that all of these have been meticulously set up and published on the internet. Once these are in up and running flawlessly, the probability of getting your application for an offshore merchant account approved will be higher.

Paying your Offshore Merchant Account Dues

Setting up an offshore merchant account not only involves paperwork but also certain fees as well. It would be ideal if there is such a set up that is virtually free, which some merchant account providers do offer. But for offshore merchant accounts, there will always be fees involved.


There are a great deal of hesitation on merchants' minds to set up offshore, one of the reasons behind the doubts is the notion that there are ”hidden” fees in the contracts for offshore merchant accounts. What happens in this scenario is that you'll be introduced to a list of rates that you'll sign up for because you have found them to be reasonable. But once the bill comes in, you'll see a number of additional fees in small amounts but when added all together have actually eaten a considerable percentage of the amount you need to pay for the month. This can be really frustrating, isn't it?


So, to assist you in this setback, provided are standard fees that merchant account providers standardly offer in setting up an offshore merchant account:

●Application Fee

●Setup Fee

●Programming Fee

●Annual Fee

●Monthly Maintenance Fee

●Overlimit Fee

●Gateway Setup

●Transaction Fee

●Retail Swipe Software fees

●Check-by-phone/fax PC software fee

●Web Shopping Cart fee

●Discount Rate fee

●Address Verification (AVS) Fee

●Statement Fee


How you are charged

Application fees are rarely charged nowadays. This is so because of the growing competition among merchant account providers. Zero application fees are the one of the marketing strategies to attract clients. But, just to give you a head start, industry rate for application fees ranges from $75 - $125.


Setup fees are also a thing of the past. Most providers don't charge this anymore also as a part of the package to keep clients coming in. Industry rate is from $50 - $150.


Programming fees are applied when you want to install a software or terminal. Most providers don't charge this anymore as programming fees are considered to be part of the set up process. Industry rate is $50 - $95.


Annual fees serves as a membership fee in certain ways. By the book, purpose is for the maintenance of the account. But it's now also being taken out of the charges as part of attracting potential clients and keep the current ones in the circle. Industry rate is from maximum of $125.


Monthly maintenance fees can be regarded as the other option for annual fee. This is a choice of the merchant account holder if they want to pay the whole dues every year or divide the amount by 12. but in this day and age, monthly maintenance fees are also being taken out to promote client loyalty. Industry rate is up to $10.


Overlimit fees are charged when the account exceeds its limit. The industry rate varies because the overlimit amounts are grouped with the corresponding penalties. But this fee is also not charged anymore as part of efforts to boost client patronage.


Payment gateway setup fee if for the the installation of the payment gateway that is critical to your offshore merchant account. Payment gateway receives the credit card information of the your customers. This is also being taken out of the bill as it is regarded as part of the setup process. Industry rate is $99 - $299


Transaction fees are the fees charged by the processor for every credit card transaction. This is charged even if the transaction was approved or declined. 20 – 30 cents is the charged for every transaction made either by swiping, keying, over the internet or mail-order-telephone-order (MOTO).


Retail swipe software is a credt card processing software solution. This serves as an wireless terminal if you have a PC or a laptop with an internet connection. You can print out receipt real-time from top-of-the-line retail swipe softwares available in the market. For better client patronage, most merchant account providers are also charging zero for this service. Industry rate is $175 - $395.


Check-by-phone/fax PC software fee are charged when payments using a check are made over the phone, or send by fax or electronic check payments. This is still done, but rarely. For better efficiency and security, online credit card transactions are preferred. Plus, currently, there is no charge for this service as well. Just so you know, industry rate is $149 per month.


A web shopping cart fee is for the use and maintenance of your online shopping cart. Ofcourse, when you have an offshore merchant account, you can also enjoy the luxury of selling your products and services online, and with a shopping cart, you have global market. But this fee is also being charged free as well, for better client loyalty.


The discount rate fee is the percentage charged for each transaction that the processing company (merchant account provider) charges to manage the transactions for you, either swiped, over the internet and MOTO.


The Address Verification System is a technology that double-checks the validity of the address that your customers enter for product shipping. What this system does is verify and compare the address keyed in with the address registered in the customer's credit card issuer. Industry rate is from $5 to $10.


The statement fee is the charge for the production and mailing of your monthly statements. Your monthly bills as an offshore merchant account holder includes all the deposits in the account, total of volume sales, and other charges for the month. Now, this fee is also free of charge for improving customer service. But industry rate is $10- $15 per monthly statement.


What to look forward to

Most of the offshore merchant account fees are now taken out to attract prospective offshore merchant clients and for to keep the current ones happy and satisfied. Some even have risk-free trial periods or offer no fees at all at the initial setup, but charge little for the crucial services which is understandable considering that every business, no matter what nature it is, needs financial resources to stay afloat. Taking out some offshore merchant account fees is part and parcel of staying in the competitive arena. Just always know your options as an offshore merchant account holder, consult if you can' fully comprehend, and weigh all the factors. Lastly, there will always be fees, just know which ones are really worth paying for.

Customer Satisfaction:The Key to a Smooth Flow of Funds to your Offshore Merchant Account

Even if you 're operating your business offshore, you can never underestimate the power of customer satisfaction making a big impact on your business' success.


No matter how good your product is, customer loyalty can still be in peril if the people you hire to sell your products are not competent and friendly enough to make your customers leave your store smiling and satisfied. Customer loyalty leads to continuing business existence and success.


One of the ways to effectively prove to your customers your sincere service is establishing a customer service hotline ideally open for 24 hours. Through this system, you will be able to let them know that any concerns that may arise will be, at the least, addressed anytime. The customer service toll-free number has representatives on call to answer calls and as much as possible, solve the concerns of the clients.


Being a merchant myself, ( as I have a thriving antique store), and having worked at a merchant account provider firm, I discerned that it will be useful to dwell on tested customer service practices, which my former company strongly emphasized and I eventually adapted.


Try to make every call a good call


Many techniques have been formulated on how to make every call a positive call. A call can be considered a positive one if you were able to provide resolution to the caller's concerns. Or, if , you were able to “restrain” an angry caller and then provide resolution in the end.



Be friendly, but not friends


Projecting a friendly voice at the beginning of a call is the sets the mood of the conversation. One practical method is to smile while talking. The person at the other line can actually feel that you are smiling. But, you also have to match the pace of your caller, if their tone is business-like, you have to project a less jolly voice. Generally, callers are casual when they talk to you, taking the time to actually smile during the course of the call. Take note, sounding friendly is different from being friends, you have to know how much you can do for them. If what they're asking is beyond your capacity, it's either you connect them to someone who can do their request or maximize the options you have for them.


Cooling them off


Every customer call should be a good call. But in reality, this is not always the case. Sadly, almost 50% of the calls will be angry or upset callers who want immediate solution to their concerns. Handling these kind of calls requires patience, a lot. The most effective way is to just let them talk first. Listen attentively, focus on the problem connected to the product or service of the company. Most of the time, callers just want someone to listen, so let them feel that you're there to hear them out.



Leave a lasting positive impression


Ending the conversation in a positive light is considered better. The reason for this is first, the customer is most concern of the resolution of the problem rather than the assurance you made at the onset of the call. They will better appreciate the service given to them if you were able to satisfy their reasons for calling.



Empathy is one of the key factors, when dealing with your clients, try to put yourself in their situation so that you will be able to tell how to react. “ What if I was the one who hasn't received the package I ordered? Would I be satisfied by just mere waiting for it to appear at my doorstep?”, giving yourself a reality check at certain times will never hurt. When you have a consistent high rating for customer satisfaction, expect you'll be in business for quite sometime and your offshore merchant account will be alive and kicking as well.

The role of merchant account providers in an offshore merchant account

How crucial is a merchant account provider to an offshore merchant account?

To discern their role, in this case, in an offshore merchant account, it's important to get a crystal-clear view of what a merchant account provider does. A merchant account provider is bank or a company that run merchant accounts. They own processing systems to process and validate transactions, but they also have reseller capabilities of third parties' processing systems.

Below are the main characteristics of a merchant account provider:

● Your business applies for an offshore merchant account on a direct basis with a merchant account provider

● Your business is personally liable for all the transactions that they process

● The customer's credit card statements contains the business name

● Merchant account providers use payment gateway

● Certain providers have fixed monthly fees exclusive of processing costs

● Can also have setup fees

● May provide long term contract requirements

Remember that an offshore merchant account allows you to accept credit card payments from your customers. You can also accept debit cards and electronic check payments depending on the merchant service you will opt for.

Since merchant account providers have a wide network of established banks internationally, you can be confident that you will have a quite a lot of banks to choose from. The list of contact banks range from those in the European banks, Carribean banking institutions, and yes, certain banks in the Asia Pacific region.

Now that you have information on what they do, how can you pick the right provider for your offshore merchant account needs? Presented are basic yet vital considerations:

● Analyze the fee setup thoroughly

● Contact their customer support to see of they are an established company.

● Check for the packages available. Always have options.

Take the time to do the math on the fee setup. If you feel you need accounting advise, never hesitate to do so. It may take long, painstaking hours to calculate but it's your hard-earned money on the line. Watch out for hidden fees. At the end of the day, if their costs suits your budget, then it's a first step.

It also always wise to call their customer service toll-free number. If they have competent and efficient phone representatives it signifies that they have the resources to actually setup your offshore merchant account. The customer support ideally should be open 24 hours everyday serving the clients' timezones for any concerns that may arise.

Merchant account providers for offshore merchant accounts have and will always offer programs set beforehand to suit your concerns. Know what you are signing up for. Ask if the program have upgraded levels. This is important so that you'll know what rewards, (if any), your offshore merchant account can enjoy once you go live.

Your offshore merchant account provider will setup a website with all the payment gateway programs and shopping cart options. They will also integrate the requirements such as Secure Socket Layer (SSL) Certificate that is needed if you're setting up a payment gateway with an application program interface (API).

It is important to know what you are getting into. Your offshore merchant account is a valuable investment you need to look after with utmost care. Never settle, for there are quite a number of merchant account providers for you to choose from. Before putting your signature, be 101% confident. Your offshore merchant account, with your assets, is what's at stake.