by: Shane Penrod
A domestic merchant account may be the best option for your company. Thats because when you
have an account managed by a company located in your country of residence, both you and the
lender are familiar with laws and business codes that can impact the way your company operates.
An offshore entity, in contrast, may be less familiar with and less observant of the rules that
govern spending and payment transactions in your country.
Your domestic merchant account may be beneficial in other ways, as well. When selecting a
lender, you can choose one that you know something about. Perhaps you have had other dealing
with this bank or institution, or you may know other business owners who maintain accounts
there. It is likely, if you follow business news, that you have read something about the
corporation and are aware of its standing in the professional community or the overall industry.
Working with a company that you know and trust can help to build solid relationships that can
blossom into additional promising directions. You may be able to secure other types of accounts
or lending in the future if your merchant account turns out to be a rewarding experience for both
Applying for a domestic merchant account may be easier than doing business with an offshore
company. You might be able to visit a local bank or one of its branches, or you might even know
someone who works there. With a foreign bank, however, you probably wont know any of the
employees, and you are not likely to get the chance of visiting in person. However, you can
possibly apply online for both domestic and offshore merchant accounts, and communication
with company representatives should not be a problem due to the latest technological innovations
that put people in touch instantly with those around the globe.
Fees for a domestic merchant account may be easier to understand when they are posted in the
currency of your native land. Conversely, it may take some figuring to calculate profits and fees
from currencies in other regions. However, many merchant account lenders do a good job of
making this part easy, and will promptly process payments from other countries so that they
enter your account in your homeland currency. Yet following the financial news in your own
dollar, peso, or euro can be easier than trying to determine the value of currency you understand.
If you do opt for an offshore merchant account provider, follow the financial news in that
country via media like radio, television, print, or Internet to get a sense of how things are going
and any impact your account might experience as a result.
Obtaining a merchant services account is a terrific way to expand the way you do business.
Accepting credit payments from customers in countries around the world can be a great way to
increase profits while lowering costs. When weighing your options of partnering with a local or
an international lender, check into the advantages of a domestic merchant account.
This article was posted on November 08, 2005