Service Rates Offered by Offshore Merchant Accounts
Offshore merchant accounts are preferred by many businesses as they have many advantages. It is thus, essential that merchants are aware of the various service rates offered by offshore merchant accounts.
Offshore Merchant Account Set Up Fee
The setup fees for offshore merchant accounts can range from a $500 to about $2000 depending on the country you choose, the business category and the volume of transactions you anticipate. For example, an adult merchant wanting to open an offshore merchant account that expects a volume of transactions greater than $50K per month will have to pay a greater setup fee than a traditional e-commerce website expecting lower volumes.
Low Volume and 3rd Party Rates
The low volume rates must fall within the strict parameters of the agreement. Merchant account and 3rd party processors have different rates for both low volume sales merchants and high volume sales merchants. They tend to be around 3% to 5% depending on the volume of sales you expect to handle. Discount rates are available depending on the merchant bank, so it is a good idea to shop around before choosing to open an offshore merchant account. The merchant bank will also charge a per transaction rate that ranges from $0.10 to $0.35. There is also a chargeback fee of around $25 standard.
High Volume and Low Risk Rates
With high volume and low risk offshore merchant accounts the rates have a much broader range. The rates are as low as 2.2% and can go up to 5%. Discount rates can dip lower than 2% and are usually below 2.5%. High volume accounts have considerably lower per transaction rates which go only as high as about $0.50; some have no charge at all for transactions. The chargeback fee is the same standard of about $25.