Request a callback
Tax Engineering

Payment gateway: High risk

tell a friend

Offshore companies and businesses that carry out high risk activities are often denied a payment gateway due to the nature of business and country of company registration. Start accepting credit and debit cards over the Internet from today with offshore payment gateway for high risk businesses. 

Reference: PP87787AR


Offshore payment gateway: High risk

Correctly chosen payment gateway can be a key to success and a stable growth of your business. However, the only way to contract a payment gateway is through payment institutions and bank that facilitate access to virtual terminals with the regulation of MasterCard, Visa, Diners Club or Cirrus.

Due diligence department of financial entity is the one in charge to approve or decline the payment gateway application. The decision is based on whether the merchant involves high or low risk of possible non-payment or chargebacks and passes anti-money laundering filters. If your business is new and at the time of requesting a virtual POS terminal your corporate bank account doesn’t have a lot of movements, it is probable that the application will be declined. The reason for that is the importance the bank gives to a credit history of a client. When there is no history of transactions or credits to analyze the payable ability of a merchant the bank makes decision to decline the payment gateway and avoid possible risks. 

As we can see, the duty of the banks, being the intermediaries between the merchants and credit cards brands, is to favor or decline a payment gateway or virtual POS terminal. When a client makes a purchase with debit or credit card in online store, the due amount gets transferred automatically to the account of the company linked with the payment gateway. Technically the process would take one two days but card brands advance the payments of a due amount to the bank, which, in its turn, deposits it on the account of the merchant. On internal level, the card brands such as Visa, for example, charge the bank the fees for these operations and the bank, in its turn, charges its clients higher commissions in order to cover the expenses. Therefore, in theory, the entity that grants the credit line to a card holder is not a bank itself but the brands of the cards with which the purchases were made.  

The criteria used by entities to decide whether a line of credit is approved or not are:  

  • Incorporation date of a company; 
  • Nature of business; 
  • Average ticket of sale;
  • Merchant´s solvency.

In case one of these factors doesn’t meet the criteria, the application of the client gets rejected.  

Offshore payment gateway providers as alternative for the banks 

Offshore payment gateway providers are small payment entities that tend to accept more risks due to higher commissions and more centralized business activity. High-risk payment gateway providers accept the merchants with history of chargebacks and overlook risks related to the solvency of a client. At the same time, they, usually, charge higher commissions on transactions and ask for rolling reserve. However, taking into consideration all the factors, offshore payment gateway providers grant virtual POSs more easily and can become a perfect option for many kinds of business activities.  

Types of high-risk payment gateways 

What is a high-risk payment gateway? A payment gateway is considered to be of a high risk when it is used to process the payments of a company that sells intangible services. Since there is no actual product sent to a client, whose quality can be questioned and analyzed, it is very difficult for the bank to defend the interests of a merchant and, as a result, the case gets resolved to the favor of a final client.   

High-risk payment gateway providers are obliged to comply with anti-fraud and anti-money laundering protocols the same way as other financial entities do. There are two types of protocols they use:  

3D Secure protocol 

Its main characteristic is security. Due to the fact that the cardholder has to introduce a security code every time he makes a purchase, his identity gets confirmed which almost eliminates the possibility of card fraud. In case your card is stolen and someone tries to make an online purchase he has to have the access to your phone in order to obtain the code that the bank has sent to you. In case you use one universal security code for all online purchases and the thief knows it, he can easily make a fraudulent payment on your behalf. Therefore, before choosing a bank for your personal or corporate bank account make sure the insurance that covers this kind of cases is included.     

Without 3D Secure protocol  

This kind of protocol is also called Traditional because it was used before Visa and MasterCard have come up with their own anti-fraud 3D Secure protocol. Since when making an online purchase the person who uses the card, sometimes not even a cardholder, doesn’t have to identify himself by introducing the unique code sent by the bank, Traditional protocol involves high percentage of fraudulent operations. Usually when a merchant is granted this kind of protocol, the PSP provider or financial entity withholds a rolling reserve, an amount of money kept for 3-6 months that serves as a guarantee in case of fraud.  

High-risk offshore payment gateway: Advantages  

  • Implementation of anti-fraud and anti-money laundering protocols;
  • Possibility to accept all brands of debit and credit cards (Visa, MasterCard, Amex, Diners Club, Cirrus, Discover);
  • Considerable saving on tax
  • No need to present a credit history;
  • Unlimited number of processed transactions;
  • Physical presence of online store´s owner is not required; 
  • No restrictions on whether the company is offshore or onshore;
  • 99.99% of approvals within 48-72 hours; 
  • Customer support in English, Spanish and Russian.

High risk payment gateway: Commissions

The fees depend on the nature of business, percent of chargebacks and type of service or product that the merchant will be selling.  

Commission per transaction
4,5% o 7,5%. Depends on the level of risk and nature of business.
Commission per each transaction OK
0,75ct/euros - 1 euro
15 euros or 20 euros per refund. Depends on the level of risk and nature of business.
50-70 euros per chargeback
Wire transfer
10 euros, 20 euros or 70 euros. Depends on the country where the client has his bank account.

* To confirm the exact rates, please contact us via phone, e-mail, Skype or WhatsApp.

* Contract high risk payment gateway for e-commerce without physical presence. All arrangements are made through e-mail and / or certified mail.

    with internal anti-fraud management
    Visa, MasterCard, Amex, Diners Club, JCB and Discover
    3DSecure and without 3DSecure
    in real time 24/7
    Certified by a notary or notary public
    Certified by a notary or notary public
    Electricity, water, gas, telephone or bank statement
    in English
    Articles of incorporation of the company, memorandum of association, register of directors, registered shares certificates and for companies registered more than one calendar 1 year ago "Certificate of good standing"
Hi i want payment gateway, submitted required docs weeks ago and have had no reply whatsoever to emails, or your web messenger service.
Hello Karen, What do you sell? Which is your website?. Regards
I am in need of payment gateway... But my app is a tip platform where My wallet will take money and transfer it to foreign bank account...Is it possible? After my platform takes commission cut, i will transfer those money to plastic atm cards... Please guide..

Dear Vishal, 

Thank you for your interest in our company. I find it difficult to understand the model of your business based on your explanation. Do you have a website we can take a look at to understand it better?


What is identity card DNI? we use drivers licence as ID for example, and ofcourse pasports. So my question is, what is DNI?

Dear Kenneth, 

DNI is a local identity card of the client. There are also other ways the client can identify himself: local passport, foreign passport or driving license. Following the requirements of compliance department the client has to present two types of identification, which can be a copy of passport and driving license, or a copy of local ID card (which in many countries is called DNI) and foreign passport used for traveling. Each client can use the way he identifies himself according to the list of identification documents that his country issues for each citizen. 

I hope your question was answered, please don't hesitate to contact us in case you have any other question. 


Samar Abbas
I want to add this gateway to my client's website. He needs 2D gateway to accept payments from VISA and MASTER CARDS around the globe. Is this possible with your gateway? He will be using IBAN of his Bank Account to accept payments.
It will depend on the business risk. What do you sell? Which is your website?. If your business is legal, you will not have problems processing card payments. Awaiting for your reply

Make a question or comment

Also you might be interested

Yakın zamanda Gönderilenler

Offshore nedir? Lehte ve aleyhte olanlar.

Korkunç gelir vergileri olmadan yaşanabilecek 17 ülke

Anonim bir denizaşırı şirketin kimliği nasıl gizlenir?

Offshore cari hesaplar

What is offshore financial center?

List of countries that use EU Banks for money laundering on a large scale

What is a foreign company?

What is Beckham law and how to take advantage of it?


Offshore Company

Bank accounts

Prepaid cards

E-commerce package

Payment gateway

Online gambling license

Private foundations