If you operate an online business and wish to accept credit card payments through your website, than you need a merchant account.
Assistance with opening Offshore High-Risk Merchant Accounts in Europe
Assistance with finding payment gateways (PSP) for high risk merchant accounts
* We have solutions for top merchant accounts in top banks in Europe!
GBO specializes with assistance for the following industries:
What is a merchant account?
Every payment made with a credit card on your website involves the transfer of funds from your client’s account into your merchant account in an acquiring bank, and then into your offshore corporate bank account. As a merchant, you have full responsibility over the transactions processed through your merchant account and must abide by the terms of service stipulated by the acquiring bank (aka merchant account provider). Each merchant account provider has different rules, terms and standards, which can often change throughout the course of your relationship with them.
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High-Risk merchant accounts
An offshore high-risk merchant account is often necessary for companies dealing in industries that carry a high potential for fraud and charge backs. For most online companies, there are no issues when it comes to securing merchant services, however companies dealing in these high-risk fields are met with many obstacles and difficulties when trying to find a service provider.
More and more online companies have been moving towards payment processors that offer merchant accounts. Even though the option of going with a domestic institution is a safer and more secure one, there has been an influx of demand with offshore merchant accounts, making it a more favorable option.
One of the more complicated industries that we work with is that of pharmaceuticals. The complications can be endless when it comes to online credit card processing for high-risk companies. The initial stage in order to begin the process would be to find an online merchant provider that will accept online pharmaceutical companies and will agree to process credit card payments via their website. Pharmaceutical bank accounts fall under the same category as any other e-Commerce merchant account service when it comes to applying for a merchant bank account. Pharmacy e-Commerce merchant accounts make credit card processing easy, safe, reliable and profitable.
It is essential to take into account that all providers are different and thus their regulations differ. Such that one provider may consider your business to be high risk, while another may not have any issue whatsoever. Ultimately it comes down to their risk and compliance department guidelines. In addition there are a number of merchant account providers that specialize in high risk merchant services, specifically catering for businesses that would be labelled as “high risk.”
At GBO, we have vast experience in helping merchants open merchant accounts. Feel free to contact us for a consultation or with any issue you may be having with your current provider.
If you are a merchant wishing to accept credit card payments online, particularly if your business is categorized as “high risk”, we recommend having not one, but multiple merchant accounts.
Why should you have multiple merchant accounts?
Don’t put all your eggs in one basket. Although you may have been approved by a merchant account provider, that approval is not unconditional. Too much volume, too many chargebacks or simply a change in their service agreement that now categorizes your business as “high risk” can cause your merchant account to be shut down with little to no notice. If you solely relied on that merchant account provider, then you are out of business (at least temporarily) if you are unable to be paid by your customers. On the other hand, if you have multiple merchant accounts, then you can simply re-route payments to another provider.
Optimize your payments. Merchant account providers tend to specialize in different industries or territories. By holding merchant accounts at different acquiring banks, you can adjust and route the source of your payments according to the most suitable bank, thus reducing fees and making the clearance of payments smoother and faster.
Reduce chargebacks. Chargebacks are inevitable, but in some industries, they are incredibly common and merchant account service providers don’t like chargebacks as it represents high risk. By having multiple merchant accounts at different banks, you can distribute the volume evenly amongst them, hence distributing the chargebacks as well. This reduces the chances of your account being shut down because of too many chargebacks.
Get better rates and fees. By opening several merchant accounts, you are in a position to compare and even negotiate rates and services, that in the long run, will reduce your credit card processing costs.
Many acquiring banks and merchant account providers, especially those providing service in the EU, often change their compliance and AML procedures with little to no notice, leaving merchants in the wind when they no longer qualify to send payments through that merchant account. The best way for merchants to be prepared for blocks, holds and other difficulties with payment processing is for the merchant to have multiple merchant accounts opened.
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