Internet Merchant Accounts

Internet Merchant Accounts are seperate bank accounts for the merchant that are approved and capable of receiving credit card payments from credit card providers. Internet merchant accounts typically do not hold funds for an extended period of time such as your typical bank account but usually transfer payments to another bank account designated by the internet merchant on a daily basis.

Source: Ourshop

Offshore Banking Explained

In this article, offshore banking will be explained in its most straightforward sense. It’s essential to pass on this information because governments are so anti-money laundering and tax evasion and so successful in getting the media to blanket cover anything relating to ‘offshore’ as evil and illegal, that the very real and legitimate reasons for banking offshore are completely ignored!

As stated, expatriates, those who own a property abroad or people with what we term an ‘international lifestyle,’ can all potentially benefit a heck of a lot from an offshore bank account. By its very nature such an account is flexible – and when you’re living abroad or sending money back and forth between more than one country or transacting in more than one currency, then the very thing you need is flexibility from an offshore account.

But let’s start with what offshore banking is not: -

Offshore banking is NOT illegal
Offshore banking is NOT immoral
Offshore banking is NOT just for the rich or famous
Offshore banking is NOT about hiding money
Offshore banking is NOT about evading or avoiding taxation

Okay, with that cleared up here is offshore banking explained in a nutshell! Many of the leading high street banks offer offshore banking services to clients – so accessible is offshore banking to all. Basically offshore banking is the management of financial assets from a jurisdiction other than the one in which you reside. For some people it does have very real and legitimate taxation advantages, but for the vast majority of us, it is all about ease of money management.

If you’re going to be living in Spain but still owning property or having financial obligations in the UK, an offshore bank account could allow you to move money back and forth between the UK and Spain and between the pound and the euro with low costs and fees, simply and seamlessly.

If you’re living in the UK and you have an investment property in Australia then an offshore bank account could allow you to manage the money your tenants pay you in Aussie dollars, pay property management services in Australia and also access the profit in the UK.

If you euro-commute and live in France and work in the UK, an offshore bank account can allow your employer to pay you via a normal high street bank – therefore stopping them complaining about any added hassles – and you can access the money from British and French ATMs with one card, and you can easily and transparently use the account both in the UK and in France.

If you’re living in the UK and working for an international company that regularly requires you to travel for business all over the world, offshore banking could benefit you as some accounts have additional features for international clients, such as allowing them access to airport lounges and travel services. Some accounts give clients travel insurance as part of the package too – and ultimately, if you are such a client leading such an international lifestyle, an offshore bank account will allow you access to your money in multiple currencies from multiple locations often fee free, it will allow you to manage your finances at any time of the day or night no matter what time zone you’re currently in, and it will help you make the most of your cash!

Offshore banking in its simplest form suits those of us who make the very most of the fact that we can travel, live and work anywhere, invest in properties abroad or different money markets and who think outside the small box that is the UK. If you want to know more about the fundamental basics and benefits of offshore banking – speak to any of the main banks such as HSBC, NatWest, Barclays or Lloyds and learn about the services they offer. This will give you a very good grounding in the subject and help you see whether an offshore bank account could actually be of benefit to you.

Source: Shelteroffshore

Offshore Banking Center

The development of the concept of offshore banking center is one of the most important legal, social and economic phenomena. This has occurred thanks to a lot of modern factors such as development in technology and communication, the spectacular growth in transnational companies and of course the development of transnational banking. Actually, nowadays the offshore banking activity is seen as the most dynamic sectors of financial activity.

However, the well known concept “offshore banking” brings some negative connotation as well and an image of unethical, illegal or even criminal activity. This is a very narrow view in relation to what offshore banking activity represents in its entirety because it transcends such illegal activities as tax evasion or money laundering. In contrast, many offshore banking centers ensure compliance with international norms and practices. The creation of offshore banking sector is the result of the laws and represents a legitimate phenomenon in itself.

The demand for offshore banking services is determined by several factors. Offshore banking centers aim to supply the demand of increase revenue. They take advantage of what in modern times it is called financial sector which goes beyond criminality, illegality and financial abuse or fraud. Today offshore banking centers aim at facilitating taxation for investors, use of modern and sophisticated banking, dynamic investment and mutual funds. Moreover, offshore banking centers view the principle of confidentiality in banking issues as an essential and crucial element which deserves to be protected and guaranteed. At the same time let us not forget that in many parts of the world the offshore banking sector is the main contributor to economic development and growth in the jurisdiction were it exists.

The offshore banking sector developed step by step. The basic structure of tax havens elevated to such sophisticated entity as offshore financial center with multiple financial services, including offshore banking. The movement of banking institutions offshore resulted in a huge scale offshore bank deposits. This resulted in the creation of a big network of onshore external financial centers and onshore-related offshore finance centers. The development of such a big network was primarily possible due to rapid development of telecommunications and air travel.

Thus, the offshore banking sector is rightly seen as one of the most dynamic sector. This sector is using heavily in its activity the rapid development of modern technologies and at the same advances it.

Source: Offshorebankingtoday

Merchant Account

A merchant account is a contract under which an acquiring bank extends a line of credit to a merchant, who wishes to accept payment card transactions of a particular card association brand. Without such a contract, one cannot directly accept payments by any of the major credit card brands. When using an intermediary payment service provider (such as PayPal), the merchant account is in fact held by the service provider itself.

Source: Wiki

A merchant account is a type of bank account that allows businesses to accept payments by debit or credit cards. So a merchant account is an agreement between a retailer, a merchant bank and payment processor for the settlement of credit card and/or debit card transactions.

If you are going to operate an ecommerce business and want to accept credit card payments online, you need at least one Internet merchant account (even if you already have a merchant account, in many cases).

An Internet merchant account is a merchant account specifically designed to handle online payment processing of credit cards. If you already have a merchant account, you'll probably notice that another difference between the two is the fees; typically, the Internet merchant account fees are higher because of the assumed higher risks of online payment (as opposed to a face-to-face credit card or debit card transaction).

You may be able to get Internet merchant accounts from your bank (the same place you got your merchant accounts for your bricks-and-mortar retail business). Because you need separate Internet merchant accounts for each type of card you wish to accept as online payment, it may be easier to purchase your Internet merchant accounts through an online payment processing services company, such as Beanstream.

Either way, you'll want to shop around. Merchant account fees are usually broken down into three categories: a discount rate, transaction fees, and monthly fees, and fees can vary widely.

Common Misspellings: Merchent account, merchant acount.

Examples: Knowing that most people who shop online prefer a choice of online payment options, Lee set up the Internet merchant accounts he needed to accept online payment by credit card when he first started his ecommerce website.

Source: Sbinfocanada

Merchant Definition

Wholesaler or retailer who may buy goods from any or all sources for resale to anyone and everyone for profit. In law, a merchant is held to a higher standard of duty of care than a non-merchant because he or she is deemed to have expert knowledge about the goods he or she deals in.

Source: Businessdictionary

According to Wikipedia..

In the United States, "merchant" is defined (under the Uniform Commercial Code) as any person while engaged in a business or profession or a seller who deals regularly in the type of goods sold. Under the common law and the Uniform Commercial Code in the United States, merchants are held to a higher standard in the selling of products than those who are not engaged in the sale of goods as a profession. For example, when a merchant sells something, he or she is deemed to give an implied warranty of merchantability, guaranteeing that the product is fit to be sold, even if there is nothing in writing to this effect. The UCC also contains a "merchant's confirmation" exception to the Statute of Frauds.

Source: wiki

Definition of the Term ‘Offshore’

The term ‘offshore’ is widely used in financial planning circles but despite its popularity it might come as a surprise to some that ‘offshore’ has no legal definition.

Generally speaking, an offshore centre is one which offers concessionary rates of taxation usually for, but not necessarily restricted to, individuals, corporate entities and trusts. The rates of taxation would be considered to be concessionary if they are lower than those prevailing in ‘onshore’ centres such as the United Kingdom, the United States of America, Canada and Germany (to name but a few examples ).

Centres in Europe

There are in the region of 60 jurisdictions which could be classified as offshore centres and the following is a list of those which are perhaps the most widely known and used:

Alderney, Canary Islands, Cyprus, Gibraltar, Guernsey, Ireland, Isle of Man, Jersey, Liechtenstein, Luxembourg, Madeira, Malta, Monaco, Switzerland.

Centres in Asia and the Pacific

Cook Islands, Hong Kong, Labuan, Mauritius, Singapore, Vanuatu, Western Samoa.

The majority of offshore centres are islands which have their own legal systems, the autonomy to introduce their own laws and the power to introduce their own systems and rates of taxation. Such centres can therefore implement legislation which is designed to attract foreign investors.

Financial Services Provided by Offshore Centres

There are a variety of financial services which are provided from offshore centres although it must be noted that not all the centres provide all of these services. The following is a list of the most commonly used financial services:

1. Banking
2. Trustee services
3. Company incorporation and company management
4. Investment management
5. Custody of investments
6. Creation and administration of investment funds
7. Captive insurance
8. Pension funds
9. Ship registration and management

It is worth mentioning that although offshore centres provide a variety of different financial services it is generally the provision of fiduciary services which have sparked the growth in this very specialised industry. A fiduciary service is generally considered to be one where the service provider owes certain duties to the person on whose behalf he is holding the assets or he has certain responsibilities which he must fulfil. The two most commonly quoted examples are trustee services and company management services, as trustees and directors are considered to act in a fiduciary capacity as they owe duties and responsibilities to the beneficiaries and members respectively.

Benefits Offered by Offshore Centres

1. Taxation

A client might decide to place his assets in an offshore centre for a number of reasons but arguably the most common is to reduce his potential tax liabilities. This is because offshore centres impose only a low or in some cases a nil rate of tax on structures or accounts which have been created locally for the benefit of non-residents. You will no doubt have come across the term ‘tax haven’ in relation to offshore centres, a direct reflection of the possible tax benefits which they can create.

2. Exchange Controls

Exchange controls are in place in a few offshore locations (most notably perhaps in South Africa), and their effect is to restrict the flow of assets. Such controls can make it illegal for cash or other assets to be transferred or transported out of the country where the rules exist and can also make it illegal for citizens of that country to own foreign assets. Any foreign assets which are held could be subject to a forces sale and the eventual repatriation of the proceeds to the ‘home’ country. Exchange controls are not imposed in offshore centres on assets which are held for international clients. Funds can therefore flow freely into and out of offshore centres although investors should be aware that if restrictions are in place in the investor’s ‘home’ country, the ‘home’ country would consider it illegal to transfer funds out of that country and into an offshore centre.

3. Client Confidentiality

In an offshore centre the reporting requirements are much less onerous that those onshore (if in place at all). Some centres, such as the Bahamas and the Cayman Islands, also offer legislation which makes the release of client information a criminal offence (unless there are exceptional circumstances which dictate that information should be made available).

4. Minimal reporting requirements

General speaking, the regulators or authorities in most offshore centres will not require information on the clients or investors who are conducting business in that centre. Instead, they will rely upon (and indeed expect) the service providers in their centre to perform thorough checks on the suitability and integrity of the clients on whose behalf they perform or provide financial services. This ‘self policing’ can appeal to many clients, especially those who are interested in remaining as ‘anonymous’ as possible.

5. Legal System

It is important that an offshore centre possess a first class legal system which contains clear and precise laws governing both domestic and international issues. The vast majority of offshore centres have based their legal systems on English common law principles but have added local provisions which are designed not only to suit the local region but also, and more importantly, to attract investors and international business. Through their legal systems, offshore centres can provide an opportunity for international clients to protect their assets from claims or legal actions which may arise from foreign countries. For example, a foreign country might have the power to expropriate assets of its citizens and to obtain legal ownership of those assets. However, if those assets were held offshore, through, perhaps an offshore trust or company, those assets would usually be protected by the laws of the offshore centre concerned. The laws of most offshore centres would usually fail to recognise, let alone defend, the laws and claims of foreign governments in relation to the forced seizure of property.

6. Local Expertise

Most offshore centres boats a high standard of local expertise in respect of their service providers. Indeed, in the majority of centres there are now a good spread of international banks, trust companies, legal firms, accountants and brokers, making the servicing of the clients’ needs much easier and more efficient and also adding to the growing reputation of the professionalism of offshore services providers in general and offshore centres in particular.

7. Regulation

It is generally true to say that financial services in onshore centres are regulated to a greater extent that financial services which are provided from offshore centres. However, a growing number of offshore centres now impose some degree of regulatory control over their finance sectors, usually by requiring service providers to be licensed to conduct certain types of activities, such as taking deposits, providing investment services and acting as trustees.

Note: * Regulation appeals to many clients as they will have the comfort of knowing that the service provider they have chosen will be accountable locally for their actions and that they must meet certain ‘fit and proper’ requirements. *

8. Communications

The majority of offshore centres have excellent fax and telephone links and also have sophisticated computer technology to assist with the preparation and flow of information. Most centres are also serviced by excellent air and / or sea links which can also be an attraction to clients and their advisers.

9. Geographic distance

To some clients, the appeal of an offshore centre will be how far away it is from their ‘home’ country. There is a perception that with distance comes greater confidentiality. This may be true in some cases but should not be relied upon.

10. Attitude of local government

The governments of the vast majority of offshore centres are aware of the importance which their finance sectors have in relation to the future growth and development of their jurisdictions and are therefore keen to ensure that the industry receives the support which it needs to expand. For example, this could take the form of capital expenditure programmes (perhaps to improve the local infrastructure or communication systems) or the introduction of legislation requested by service providers (designed to make the centre more attractive to foreign investors). It is generally accepted that those centres which have supportive governments are seen as a more suitable and better long-term choice than those centres which struggle to gain the support of their ruling authorities.

11. Political and economic stability

Many offshore centres are able to boast a long history of political stability and strong local economies, both of which help to build confidence in those centres. After all, if a centre has recently undergone civil or political unrest there might be a risk attached to the safety of the assets which have been placed there. Similarly, if the local economy is weak, unemployment might be a problem which could affect the availability of a suitable workforce. In addition, the cost of the services might increase (making the centre less appealing) and the general mismanagement of the jurisdictions financial affairs could affect its overall reputation.

Source: Offshore4u