What is an offshore merchant account



What is an offshore merchant account?

An offshore merchant account is a merchant account where the sponsor bank is located in a country other than the country where the business is physically headquartered.

Why would a business need an offshore merchant account?

Many internet based businesses in the high risk merchant account category face regulatory obstacles when attempting to secure domestic merchant accounts through local banks. hese businesses find offshore merchant accounts beneficial since different countries have variations in laws and regulations that allow them to do business without impediments.

An offshore merchant account is NOT a catchall phrase that permits any business to accept credit cards. It simply means that the merchant account is governed by the laws of the local sponsor bank which may be different than the merchant’s domestic laws. United States banking regulations currently either drastically restrict or prohibit certain business types such as:

  1. Online Gambling (licensed)
  2. Adult Web Sites
  3. Marijuana related businesses

Many legal high risk business owners must bring their credit card processing to a country that permits these types of businesses.  Examples include:

  • Online Pharmacies (licensed).  MNBS Payment Solutions can provide offshore online pharmacy merchant accounts in Europe and Asia.
  • Online Gambling (licensed). MNBS Payment Solutions can provide offshore gaming merchant accounts throughout Europe, Asia, and Central America.
  • Adult Content. Adult content web sites can receive merchant accounts in the United States and Europe.

Merchants that are considered high risk in Europe, Asia and Central America can benefit from an offshore merchant account. Please contact MNBS Payment Solutions to explore the benefits that an offshore merchant account can offer your online business.

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