You Can Get an Offshore Merchant Account With Instant Approval: Is That True?

Jan 4, 2022 Reading time : 6 min

You must have heard that some companies provide instant approval for an offshore merchant account. You might be wondering whether it is true or not? How fast does instant mean here? How do these companies provide instant approval? How does it work? Do I need to pay extra for instant approval? And several more. 

All these questions might cross your head. And it is essential to be informed about them too. So, next time such messages reach you, you will be more aware and careful. Today, we will find out the answers to all of these questions to better understand the instant approval of offshore merchant accounts. 

What is an Offshore Merchant Account? 

Yes, offshore merchant accounts are those which help a business to accept payments in foreign currencies. If you want to take your growing business overseas, an offshore merchant account will be the best idea. It is a little different from an international merchant account.  

We consider an international merchant account a standard or high-risk account. And offshore merchant accounts are termed high-risk merchant accounts; the rest of everything is the same. 

Let us understand the meaning of an offshore merchant account with an example: suppose your business is in India, and you have established a payment process in the USA (whose primary headquarters is outside the business region). Then, the account in the USA will be an offshore merchant account. To apply for an offshore merchant account, you need a payment processing history of $50,000 per month. There are several reasons why a company chooses such an account. It can be to enjoy business incentives of other countries, liberal underwriting, and tax purposes. 

What is Meant by Instant Approval? 

There is hardly a thing like an instant approval for a high-risk merchant account that involves a few business days. It requires several steps and processes to get complete. However, the process can be speed-up. 

Internet facilities and online services can do it. But, even then, calling the process to end in an instant will be too much. The primary duration goes in checking the business owner’s credit score and the business. Along with this, the document verification process is also time-consuming. Only after the completion of these processes do they issue the approval. 

There is no doubt that the internet has reduced time consumption and boosted the process. That is why several companies promise instant approval. The automated process cuts down the time and makes it shorter than ever before. But, some companies are quick with the processing. So, it would be wrong to state that things like instant do not exist for them. 

Why is an Offshore Merchant Account Required? 

Offshore merchant accounts will help you accept payments in the local currency of other countries. Not only this but businesses involving the risk of paybacks and dues see offshore merchant accounts as a blessing. And, when you are running a business, you would always want to protect your assets. 

Suppose your business got involved in a lawsuit, even though the result is in your favor, it would cost you time and money. In such a case, an offshore merchant account can be your savior. Having such an account will rarely drag any face to the court. And, in case it reaches there, the merchant bank will help you pay legal fees and let your business run as usual. 

How Can I Speed Up the Process? 

Looking for fast processing of your merchant account? There are several steps one should follow to speed up the process. These are: 

  • Work with a reputable company ensuring instant approval. 
  • Provide every detail required for support of a high-risk merchant account. 
  • Present all the original documents at that time of filing. It will save much time, such as: 
  • Filled merchant law application. 
  • CV or resume for business or owner. 
  • Original photo I.D. or driving license. 
  • Avoided cheque 
  • SSN (Social Security Number) and EIN (Employer Identification Number). 
  • Processing statements of three months 
  • Copies of the supplier agreement 
  • Copies of a personal banking statement 
  • Chargebacks must be under 2%.
  • Copies of business bank account statement 
  • Article of incorporation 
  • Article of association 
  • Screenshot of the business website homepage. 

Providing authentic and complete information will save a lot of your time. Cases of misrepresentation and concealment of documents can prolong the process and can cause unnecessary delay. So, be honest with your merchant provider. It will save you from court cases and minimize the duration. 


  • Having a merchant account in the local bank of your customer base will help you accept the payments without currency conversion. 
  • International banks usually allow higher processing volumes than their U.S. coequals. 
  • It is beneficial for businesses not getting approval locally in their country due to the nature of business.  
  • These are the types of accounts fit for businesses providing adult entertainment or casino services. 

Disadvantages of the Offshore Merchant Account

Everything has its advantages and disadvantages. Despite the enormous benefits, it has some disadvantages linked to it. And, one must know these disadvantages before opening an offshore account. So, let us look into these drawbacks: 

  • Different processes – The methodology of opening an account varies from one country to another. 
  • Access can be tedious – Accessing your funds may be more complex than the local bank accounts. Sometimes it can take four to seven days to complete a transaction.
  • Expensively than local bank accounts – The charges are relatively higher than the local bank accounts.
  • Less security – There is no money-back guarantee if bank accounts go on or the offshore bank goes bankrupt. 

Final Words  

Getting an offshore merchant account can be highly beneficial for your business. But lack of knowledge can turn it into a bad experience. So, it is better to be aware of the processes, terms, and conditions under the approval of offshore merchant accounts. There are several advantages and disadvantages attached to offshore merchant accounts too. Before getting involved in the process, make sure you have read it all. 

Samara Davis
Posted by
Samara Davis