Twenty years ago, a business opened a shopfront,  put ads in the local newspaper, joined a local networking organization and hoped the local customers needed what they had to offer. All that changed with the origination of the internet. With the introduction of internet our life has become simpler and quicker. A business is no longer dependent on its local customer base for its cope; it now has a worldwide audience for its goods and services. E-commerce has become really popular, and its popularity has led to the introduction of offshore merchant accounts.

You must be aware of the fact that many businesses because of its nature are labelled as “high risk” by many domestic merchant account providers i.e. bank and payment processors. As a result, getting approval from domestic merchant bank application and underwriting processes are both difficult and time-consuming. Thus, offshore merchant accounts came into notice.

When you apply for a merchant account you are given to choose either of the two accounts. One is the offshore merchant account and other is the domestic merchant account. At that moment you have to make a wise decision for your business’ bright future.

In this blog, we will be discussing in detail the difference between domestic merchant accounts and offshore merchant accounts.

MEANING OF DOMESTIC MERCHANT ACCOUNT: This type of account is defined as an account where a bank within the United States provides settlement services for your transactions.

High Risk Merchant Account

MEANING OF OFFSHORE MERCHANT ACCOUNT :  It is a type of account for a merchant in a non-resident country. It helps the merchant to process payments through their websites and allows them to making a transaction and processing their sale.

The very basic difference between an offshore merchant account and a domestic merchant account is that a bank that issues offshore account resides in offshore countries, whereas, get bank that point domestic accounts resides in the same country as the merchant.

  • Regulation: Offshore merchant accounts are easier to get because of relaxed regulations around the globe, whereas, domestic merchant accounts have strict regulations, and if in case you break any of them, you might get blacklisted.
  • Global payment: Offshore merchant account is also known as an International merchant account, and in this context, we can say that offshore merchants can sell their products all around to the globe and can reach their customers from different countries, whereas, in domestic merchant account, merchants have a limited area to reach their customers. They can deal with the country premises only.
  • Payment solution: Offshore merchant accounts provide a business solution for credit card and debit card processing even in their own currency while dealing across the border, whereas, domestic merchant accounts have nothing to do with different currencies.
  • Advanced security: To protect the transaction offshore merchant account providers like iPayTotal, provides advanced security like 3D secure, card verification, address verification facilities, whereas, domestic merchant accounts also provide you with security but not with as many facilities as offshore merchant accounts.
  • Competition: Offshore merchant accounts do not have tough competition they provide services to small, large, e-commerce merchants even if they are not experienced or have been rejected by banks before, whereas, domestic merchant accounts work only with established businesses and can easily reject your business.
  • High risk businesses: There are many business types which are considered as high-risk because of the nature of their business and products or services which they offer. Such business requires a high-risk merchant account. Offshore merchant accounts like iPayTotal provide you high-risk merchant account especially for your respective business type with extra benefits. They have experts dealing with high-risk business. Whereas, domestic merchant account provider like banks do not have such broad specifications for high-risk merchant account and they do not have experts.
  • Growing technology: E-commerce is going on the rise. Credit card processing has become an important thing in this digital era. Though there are options of money order payment, bank transfers and even checks, still they do not give as much coverage as the credit cards. That’s why credit cards are considered the most widely accepted forms of payment for online businesses.
  • Customer services: Offshore merchant account provider gives you 24*7 customer services and a very supportive and caring customer supporting system. Whereas, this feature is missing with banks, domestic merchant account provider.
  • Reviews: Offshore merchant accounts reviews are better than domestic merchant account reviews because of the services for all types of business, payment solutions, payment gateway and customer care.
  • On time payout: Apart from everything mentioned above, the payout must be on time as it is a major requirement of each and every merchant. Trustworthy Offshore merchant account providers like iPaytotal get it done within days.

    From all the points discussed above the picture is clear that offshore merchant accounts are better than domestic merchant accounts. A clever merchant always keeps every aspect in mind and then take the best decision. You have to research and find a suitable merchant account provider for your business. And iPayTotal is the answer to all your queries and worries.


    IPayTotal with a decade of experience and professionals work for the betterment of your business. We understand you and your business and can help you with all the important decisions for your business. We are always available to answer all your query. We make sure to get your offshore merchant account even if you have been rejected as “high-risk” before.

    So let’s get started!!

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