What is a domestic payment processing solution and why does it matter?

January 16, 2019

What does domestic really mean to you? “We now offer a fully compliant, domestic solution…” sends the entire high-risk industry into a buzz when hearing about a new domestic solution for high-risk vendors.

In the high-risk payment industry, it’s hard to find many domestic solutions that will offer your business a good rate and allow you to process within the US. Traditionally, many high-risk businesses are forced to find an offshore payment processor or offshore merchant to process their transactions. However, most merchants are uncertain about the safety that offshore solutions can offer their customers.

So what’s the difference, really?

Having the ability to process within the United States is often thought of as being more secure, as many offshore banks and processors aren’t subject to the same regulations as in the US and can lack oversight.

However, when many of these companies look to expand outside of the United States, some of these domestic solutions lack the ability to scale and accept many forms of currencies across the world and ultimately may be quite limiting for these high-risk vendors. In addition to accepting different currencies and credit card providers, processing your payments offshore can allow for certain tax benefits toward your company.

Companies are also looking to avoid the International fee that is associated with a global payment processing option. However, as of January 1, 2019, this fee will no longer be imposed by credit card companies. Eliminating another cost for a United States based business looking to take their brand to a global level. In addition to no longer having to incur this cost, what is considered high-risk varies from country to country, so what may be considered high-risk in the US, may not be considered high-risk elsewhere and inevitably get your business a better approval rate.

It’s important to find a reputable payment processing gateway that will customize a solution for your business and give it the ability to grow on a global platform. T1 Payments has served as an industry leader in global, high-risk payment processing. Years of expertise and exceptional customer service set it apart from its competitors, all while still placing an importance of offering all the same security measures as it’s domestic competitors to help you fight fraud and chargebacks. To find out more about our customizable global payment solutions for high-risk merchants – including active account monitoring for fraud, chargeback management and real-time reporting – please visit T1PAYMENTS.COM or call 866-518-2216.