What You Need To Know About Offshore Company Formations

There is more than one reason why one should open an offshore company. From saving money on taxation to operational ease, owning an offshore company opens the gateway to many such benefits. Being easy and quick, offshore company formation has become quite common nowadays. With the availability of service providing agencies, one does not require facing the usual hassles of incorporating a company overseas.

Benefits

It cannot be denied that the chance of enjoying tax reduction or tax negation remains the strongest force behind offshore IBC formations. As a rule, any businessman who invests offshore by opening a bank account or incorporating a company gets some tax reduction benefits. If the company is established in a low or no-tax jurisdiction, it will save the person a substantial amount.

Apart from reduction (in some cases negation) in taxation, the convenience of operating a company overseas encourages many people to go for offshore company formation. In an offshore company, there are generally fewer operating restrictions, and limited accounting and auditing requirements.

The standard to be maintained by the business and the employees, including the directors, is also less restrictive in an offshore company. Among the other important benefits of offshore company formation, there is a better scope for asset protection and personal privacy protection. While the former helps keep the company assets away from probable litigious action, the latter gives scope to maintain a high level of privacy by not exposing personal information.

Choose Your Jurisdiction Carefully

Do you want to set up an offshore company? Well then, you should know that while several countries have become popular destinations for offshore company formation, not all of them offer the security and services that you need to operate your company successfully. The jurisdiction you choose should offer great tax advantages and protect the assets and confidentiality of its offshore companies to create a unique environment that supports ethical business operations. Therefore, it is best for you to work with a consultant who can help you determine which country is best for you before you start the offshore company formation process.

 

 

 

 

 

What Does An Offshore Merchant Account Offers?

Since e-commerce businesses are becoming more competitive with time, business owners find offshore merchant accounts beneficial. This is mainly because there is no hassle to open an offshore merchant account. The usual requirements of having a business that has existed for a minimum of two years and making a security deposit of several thousands of dollars are not needed when an offshore merchant account is created. The only difference between an offshore merchant account and a simple merchant account is mainly the bank location, which for an offshore merchant account mostly resides in a different country.

Benefits of an offshore merchant account

• Offshore merchant accounts tend to have a cost-effective and hassle-free setup, merchants get better service, and there are practically no deposit requirements.
• Business owners are no longer bound to select a bank in one country only. With offshore bank accounts, they become capable of expanding their business worldwide. And with low taxes, it provides an economic advantage to merchants.
• It enables offshore credit card processing, and merchants can accept payments in multiple currencies.
• Offshore merchant accounts tend to place the business owner in a favorable e-commerce world. And as the bank does not exist in the same location as that of the merchant, it helps the business decrease taxes.

Some offshore banks and credit card processors do charge slightly higher processing fees and discount rates, however, when the merchant realizes the tax savings they are incurring by processing offshore, they discover they are far better off than if they had remained processing onshore. High-risk businesses, in particular, like online casinos, pharmacy and travel merchants prefer using an offshore high-risk merchant account as most domestic banks (US) decline these business categories, owing to their high volume sales, potential chargeback, and refunds, etc. Offshore banks tend to be more liberal with their underwriting policies, tax savings, and no sales volume restrictions.

Credit Card Processing: Finding The Right Partner

Though e-commerce has been around for some time now, website owners still face difficulties in getting merchant accounts from banks and financial institutions because of the risk of credit card fraud. Fortunately, some internet merchant service providers are more than willing to support e-commerce businesses. These companies have a good understanding of the complexities involved in online merchants; whether they are low or high risk.

Type Of Merchant Account

There are two types of merchant accounts. The first one is where a business partners with a bank or other financial institution. The business applies for a merchant account; the bank verifies the credit history of the business entity and the type of business (low or high risk) that will be carried out over the website; the bank approves or rejects the application on that basis. The e-commerce business must comply with the rules laid out by the bank.

The other one is a high risk merchant account. As the name implies, this account works well for high risk businesses that may not get approved for merchant accounts otherwise. For example, if you own a poker site, obtaining an online poker merchant account from a financial institution may be extraordinarily challenging or extremely expensive. In this case, you are better off working with a high risk specialist.

Compare credit card processor’s rates

Invite quotes from five or more credit card processing services and compare their prices and features. The prices can vary based on the average sale amount per credit card transaction (average ticket size) and the number of transactions processed in a month. Whatever be the fees applied, they should be clearly mentioned at the start of the contract.

Whether you are hiring a low risk or a high risk credit card processing partner, you should take the time to do a comprehensive comparative study before making your final decision. Compare services rendered, rates charged, customer service, past records, etc. Get references from associates and ask questions freely. Switching credit card processors could be a cumbersome job. Get it right the first time around.

Credit card processing for high-risk merchants

In this day and age, accepting credit cards as a form of payment for your business is an absolute must. For the average retail business, it is as easy as calling a merchant bank and requesting a merchant account. However, some businesses are classified as “High Risk” by processing institutions and are much more difficult to get a merchant account for and are typically more expensive.

A high-risk merchant is any merchant that has very poor credit and/or owns a business that operates in an industry that is known for having higher than average chargebacks and a higher chance of transactions being fraudulent. A few good examples of businesses that would be considered “High Risk” are as follows.

• Casino and poker sites
• Adult Services
• Online pharmacies
• VoIP companies
• Travel agencies
• Subscription-based businesses

The reason that processing banks are hard on businesses that are considered high risk is simple. If a business fails to meet its obligation to provide its customers with a service or if a business goes bankrupt and a customer demands their funds be returned to them, then the merchant bank is obligated to refund the customer out of their own pocket. All of the risks associated with processing payments are absorbed by the bank itself, and the bank just does not want to deal with that.

So, what options does a high-risk business have?

A business owner always has the option of not acquiring a high-risk merchant account and, thus, not accepting credit cards as a form of payment. Unfortunately, accepting credit cards as a form of payment is a must in order for a business to flourish. If you do not have the ability to accept a credit card, a customer is likely to just go to one of your competitors.

A more feasible option is to choose a merchant account service provider specializing in working with high-risk businesses. These professionals offer a complete range of high-risk merchant services, including high-risk credit card direct processing and high-risk e-check processing solutions. With their assistance, you can accept credit card payments in as little time as possible with a stable, safe solution with fair rates and favorable payment terms.

How Does Credit Card Processing Work?

Setting up a merchant account is one of the wisest things you can do for the growth and expansion of your online business. After all, a merchant account is what makes it possible for you to process credit card payments on your website.

But how does the credit card processing system even work?

There is no reason why you should be familiar with the ins and outs of how the payment processing system works on your website, as your payment processor or acquirer will handle everything on your behalf. However, it is still a good idea for you to get to know the basics.

Understanding The Mechanism

Let’s try to understand how the card processing system works with an example. Keep in mind that these steps are similar for both low risk and high risk merchant accounts.

1. A customer buys something worth $100 from your online store and pays with a credit card.
2. The $100 amount will first be transferred to the payment gateway, where payment will be authorized with a small deduction (say $0.5).
3. The ($99.5) amount will then be transferred to the appropriate processor and submitted to the card interchange after a further small deduction (e.g., $0.5).
4. After the transaction is cleared at the interchange, the $99 amount will be transferred to the issuing bank with a further deduction (another $0.5). This is where the issuing bank will verify the flow of funds to the customer’s credit card.
5. If the issuing bank approves the transaction, the $98.5 then reaches the processor at the acquiring bank.
6. Once the payment is authorized by the acquiring bank, the bank deducts a small amount ($1) and the final amount of $97.5 gets deposited into the merchant’s account.

(Note: In the case of high risk merchant accounts, such as an online poker merchant account, the fees are almost always higher than those of low risk merchant accounts.)

Today, Online payments are exclusively made electronically, especially with the extensive use of credit and debit cards. So, if you still do not have a credit card processing solution on your website, you are losing out on a ton of customers.

Why Should You Set Up An Offshore Merchant Account?

Establishing a merchant account offshore is not a complex task anymore. While many high-risk businesses choose to open a merchant account offshore, not all accounts are exclusively created for high-risk merchants.

Companies in different industries establish accounts because the payment online processing option makes good business sense. The primary goal of any business is to have the most efficient payment processing solutions, whether the solution includes a merchant account offshore, domestic processing, or any combination thereof.

Business Benefits of a Merchant Account Offshore

• An offshore Merchant account diversifies payment processing and decreases risk factors associated with payments., this account offers substantial protection to businesses against the uncertainties in the global business world.
• Interchange rates vary under different jurisdictions. Therefore, it may actually be more affordable to process certain transactions through this account as compared to a domestic account.
• For companies doing international business, the foreign exchange rate of the currency is a major concern. This account can help a company in saving money on foreign currency exchange rates.
• Multicurrency processing. All these accounts can process and settle transactions in several currencies. Multicurrency processing helps in increasing sales by giving customers the option to pay in local currency.
• An account may offer several other business expansion advantages. Many countries give incentives and rewards to companies that establish a corporate presence under their jurisdiction.
• Certain high-risk businesses (such as OTC bitcoin trading desks) find it easier to process payments with an offshore high-risk merchant account than domestic.
• Businesses in the online Casino, Poker and online pharmacies have issues be approved onshore when as offshore bank maybe more accepting.
• An offshore bank account also offers unlimited processing volumes as a standard feature. This is particularly helpful to expand businesses rapidly.

International e-commerce and Offshore Merchant Accounts

In these times of international e-commerce and online business an offshore merchant can be a game change for an online business. The world has indeed becoming a global marketplace. Any international company is making a mistake if it is still thinking in terms of only national borders. International payment processing is crucial for companies that have a global customer base.

 

 

How To Secure A Pharmacy Merchant Account?

According to the IQVIA Institute for Human Data Science report, the global market for pharmaceuticals was valued at $1.2 trillion in 2018. If you want to enter this incredibly lucrative industry by setting up an online pharmacy, however, you will be surprised to know that this industry is categorized as high-risk.

In order to keep your online pharmacy afloat, you need to have the ability to process credit card payments. But because your business is labelled “high-risk”, you may find it hard to convince a traditional merchant account processor to take you on.

So, what are your options?

Enter the high-risk merchant account provider.

High-risk merchant account providers are specialists in high-risk industries and are well equipped to meet the needs of your online pharmaceutical business.

You don’t need to get sucked into the black hole of research to find the perfect high-risk merchant account provider; Liberty Enterprises is all you really need. Liberty Enterprises offers e-commerce solutions for high-risk merchants, including pharmacy merchant accounts.

As a leader in the high-risk industry, Liberty Enterprises does not shy away from helping legitimate businesses that have been previously shunned by traditional merchant account providers.

Getting started on securing your pharmacy merchant account with Liberty Enterprises could not be easier. You simply fill out their online application. Together with the application, you will be required to submit the following information for your underwriters and processors:

• Scanned completed and signed merchant application.
• Passport copies of all owners.
• Company incorporation papers.
• Current utility bill for each owner
• Six month of current credit card processing history.
• 3 months bank statements

Additionally, all prospective merchant account holders must ensure that no drug on their site is categorized as “controlled” under the Controlled Substances Act (CSA).

Liberty Enterprises assures you that the application process will be quick and painless. As soon as processors and underwriters receive all required information, you simply have to wait 3-4 weeks for your high risk merchant account to be approved. Although this is not guaranteed to all merchants, there is a high probability that most will be approved.

Why Should You Create An IBC In Panama?

Have you ever considered keeping your operational costs down with an offshore business model? In that case, the formation of an International Business Corporation (IBC) in Panama may very well be what you need.

Setting up an IBC in Panama is a great option since this small Central American country offers reliable banking solutions and has regulations written into its constitution that supports businesses and their owners. Thanks to its business-friendly framework, Panama has carved out a niche as the premier global financial centre.

Still not convinced? Let’s take a look at some of the reasons why you should set up an offshore company in Panama.

• It can be set up from anywhere: Many business owners who are considering creating an IBC assume that they will have to pack up and move to the country to establish residency, but there is no requirement for a business owner to live in Panama. What’s more, conducting business outside of Panama does not require additional licenses or operational notices.
• The incorporation process is very efficient: It does not really cost much to establish an offshore Panama company and to become an incorporated business. There is also no need to deposit or pay registered capital on a schedule. Compared with other jurisdictions, Panama is competitive in just about every area. What’s more, the entire process is completed quickly, usually within four to five business days.
• Panama values privacy and has mechanisms in place to safeguard: The identities of individuals who set up an IBC in Panama are kept under wraps. Even if an individual does not want their name listed on the incorporation certificates or official contracts, that is fine.
• The funds are always protected: Among the most common reasons for creating an IBC is security. Because these accounts are so well fortified, offshore bank accounts in Panama are a secure place to store money.

Setting up an IBC in Panama is an easy process. Partner with an offshore banking service provider today and enjoy all the perks and privileges the “Crossroads of the World” has to offer.

 

Can You Spot A Legal Online Pharmacy In A Sea Of Illegal Ones?

Legitimate online pharmacy businesses around the world comply with all the applicable safety and regulatory considerations and put public safety first. At the same time, there are also many fraudulent online pharmacies that are only interested in living off the backs of this multi-billion dollar industry.

Such deceitful online pharmacies sell medications illegally and without any valid prescription. They certainly do not care about their customers, and the medications they sell are always questionable at best; they may be counterfeit, mislabeled, adulterated, or even contaminated. After all, the United States Food and Drug Administration (FDA) does not supervise the manufacturing process of these products, and they are often made from unregulated raw materials in unauthorized laboratories.

Spotting Legal Pharmacy Websites

We understand that it may be quite difficult for an untrained eye to tell the difference between a legitimate and fraudulent online pharmacy business. We can help. At Liberty Enterprises, Inc., we have been providing reliable high-risk merchant accounts to reputable merchants across the world since 2003, and we can help you differentiate between a legal and an illegal online pharmacy.

 

A legitimate online pharmacy business will always:

• require customers to submit prescriptions from a licensed health care practitioner/provider;
• Make customers submit their full medical history so that it knows what medications are likely to have side effects;
• clearly state its payment, privacy, and shipping policies on the website; and
• use secure and encrypted website connections to conduct online transactions (look for the HTTPS in the URL).

Reliable Pharmacy Merchant Account Services

If you have a licensed online pharmacy business and are searching for payment processing services, we have a secure and affordable pharmacy merchant account solution for you. We specialize in securing offshore merchant accounts that will allow your licensed online pharmacy to accept major credit cards in multiple currencies.

Factors To Consider When Selecting An Offshore Banking Service Provider

If your business falls in the ‘high risk’ category, you are likely to have your merchant account applications denied by banks and processors a couple of times. Can the solution to this problem be to set up a high risk offshore merchant account?

Well, yeah. Banking regulations are more lax in some jurisdictions, and some international financial institutions are more willing to work with high risk businesses as well. This means that enlisting offshore banking services can very well help your chances of getting a merchant account.

Here are some tips on how you can find the right offshore banking service provider.

Many offshore banking service providers specialize in working with high risk merchants; however, not all high risk merchant services providers work with foreign banks and processors. Many high risk merchant services providers work only with US-based companies, providing accounts only through US-based banks. Thus, before applying for an offshore account, you will want to confirm that the company you are considering partnering with works with businesses located in your country. This info may be provided on the provider’s website, or you may need to speak directly to their sales staff to receive confirmation.

 

High risk offshore merchant accounts are often more expensive than standard merchant accounts. What’s worse is that high risk merchant service providers know you are desperate for a merchant account, and some, though not all, will try to exploit your position by charging you as high as they can. It is therefore strongly recommended that you compare several quotes from different high risk merchant service providers before making a decision.

Having a high risk business does not mean that you cannot accept credit card transactions like any other business. Get your business back on track by finding a merchant account service provider that will partner you with the right acquiring banks.