Credit Card Processing for International Transactions
Offshore merchant accounts have one big advantage: You may process large numbers of transactions on international cards without running afoul of the international card restrictions demanded by most U.S.-based processors.
QUICK FYI: A credit card is considered “International” if the card holder’s bank is located outside the U.S. This applies EVEN IF the cardholder was inside the U.S. when the transaction was made. All US-based processors have limits on the percentage of International cards you may process in a given month. Your Merchant Account can be terminated if you surpass this limit. If you accept, or want to accept, large numbers of International cards then having an Offshore Merchant Account is the best solution. Offshore rates are in the range of 6.5%. Now the good news for you, when dealing with real professionals as you will find in our office, is that we have one domestic solution that will process your international cards at significant monthly volumes.
This might sound daunting but please remember that your ability to accept payment via credit cards really is your entire business. So many of our merchants have come to us in a panic, having recently been refused by their primary bank or terminated by their current processor.
There is really not need for a panicked rush.
It is imperative that you preemptively solve this problem by setting up additional merchant accounts now – so you will not be impacted by banking decisions your current processor may make in the future.
What should matter to you are two things:
- You should have several legitimate, reliable Merchant Accounts;
- You have a reasonably large monthly volume limit – which gives you room to grow your company.
If you are going to be in the travel industry then you must accept credit cards. Most travelers want to use their “points” and, for some others, their credit card represents more buying power than cash-on-hand. That said, you should know right from the start that the credit card processing companies and their affiliated banks (aka “underwriters”) consider the travel industry to be “high risk”.
It is not your fault. You did nothing wrong.
The problem is that all variations of the travel industry, have higher-than-average numbers of fraud and abuse cases. Therefore, travel is treated as a higher risk credit card processing category – and charged higher-than-average processing rates. As a rule of thumb, processing rates for many online services run in the 2-3% range, whereas rates for travel-related companies run in the 4% range.
Like we stated above, it is imperative that you preemptively solve this problem by setting up additional high risk merchant accounts now – so you will not be impacted by banking decisions your current processor may make in the future.
Please take just 30 seconds in filling out the “30-Second High Risk Assessment“ on the right so we can tell you how we can get your high risk credit card processing up and running quickly or call: