When domestic U.S. banks decline your industry, offshore acquiring becomes a viable alternative. But offshore processing comes with tradeoffs that every merchant should understand.
Domestic Processing: Pros and Cons
- PROS: Lower fees, faster settlement, familiar regulations, easier dispute resolution
- CONS: Strict underwriting, limited industry acceptance, less flexibility
Offshore Processing: Pros and Cons
- PROS: Broader industry acceptance, flexible underwriting, multi-currency options, regulatory arbitrage
- CONS: Higher fees, slower settlement, currency risk, less regulatory recourse
When Offshore Makes Sense
Consider offshore processing when:
- Domestic banks decline your industry entirely
- You need multi-currency settlement
- You serve international customers
- You have been MATCH listed
- You need higher processing volume capacity
"Many successful high-risk merchants maintain both domestic and offshore processing for redundancy and risk distribution."