In Praise of Off Shore Merchant Accounts

There are plenty of smart and legal business accounting practices that can help you make the most of your money. One of those practices is to use off shore merchant accounts for your credit card processing needs. Not only can these types of accounts save you money, but also they are legal and they often provide service that is at the same level of service - or better - as the service you get on shore.

Credit card processing ability is an almost necessary part of business today, even for many small businesses. This is because so many people prefer to pay with credit or debit cards instead of cash or check. If you have the ability to process credit and debit cards, then you are engaging in a smart business practice, as it will allow you to serve a wider range of customers.

But when you accept credit and debit cards, you also need a way to process them and to make sure the money is properly transferred from the customers' accounts into your account. This is where a merchant account comes in. Merchant accounts act as a way for the credit or debit funds to transfer. It is an account much like any other bank account, but for accounting purposes should be kept as a separate business account.

You can open a merchant account with one of many companies in the United States. But you could also look at offshore accounts available in countries in Central America, Europe and the Caribbean. An off shore merchant account can help you save money in many ways with respect to your debit and credit card transactions.

If your account is located off shore, often it counts as foreign income. Foreign income, thought taxed, is taxed at a different rate than domestic income. Consult with your accountant or a tax attorney to settle the accounting necessities attending this option. At any rate, if you choose to open an off shore merchant account, you can send less of your money to Uncle Sam.

Another way that this accounting trick saves you money is by making it possible for you to save money in upfront costs and security fees. Many on shore accounts require quite a bit of money for an opening account and for security reasons, and then keep back a certain amount of money, on top of the original security amount, each month in order to cover charge backs. Initial deposits and holdbacks for charge backs are usually lower with off shore accounts.

Some of the transaction fees associated with off shore accounts are a little bit higher, but that cost is usually more than off set by the savings enjoyed in taxes and in other fees. Additionally, the service is often very good, as these companies are actively trying to gain and maintain clientele.

One of the best accounting moves you can make for your business is to look into off shore merchant accounts to see if they will work for you.

The author: Ingrid Ingra writes exclusively for Fair Accommodation, visit there today for the latest Accommodation advice, and why not sign up for the free Accommodation newsletter. Want to read more Accommodation articles?, just go to: www.fairaccommodation.com/articles
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