A merchant account represents a special type of bank account which is set up for the purpose of depositing funds gathered from credit and debit card sales. When you use your card, the funds go into a merchant account. From it, they are then sent to a regular business bank account, generally daily or weekly. In this article, our lawyers in Cyprus explain how to open a merchant account in Cyprus.
Criteria for setting up a merchant account in Cyprus
To set up a merchant account in Cyprus, the following criteria have to be met:
- Having a bank account;
- Gathering and filing the required corporate documents, such as the Certificate of Incorporation, the Articles of Incorporation etc., which should prove that the business opening such an account is legitimate;
- Having a website;
- Presenting the refund policy information;
- Presenting bank or trade references;
- Providing a copy of the recent tax returns. Our Cypriot lawyers can provide further details on this subject;
- Presenting a copy of the person’s identity, such as an ID card, a passport and so on.
Advantages of a Cyprus offshore merchant account
An offshore merchant account opened in Cyprus brings numerous advantages, among which our Cypriot lawyers would like to mention:
- It enables you to accept payments from 160 countries in different currencies. This allows you to broaden the market share your products can be sold to. Therefore, the moneymaking opportunities increase;
- Less trading restrictions: in case you are activating in a sector which is considered high risk, like dating websites or Internet hosting, setting up an offshore merchant account in Cyprus is the most advantageous option;
- Keep more of the profits: the tax rates in Cyprus are low or non-existent. Our attorneys in Cyprus can offer more details on the taxations levied in this country;
- No more transaction volume caps: Usually, offshore banks do not place a cap on how many transactions your business is able to process monthly, offering you full earning potential.
If you have more questions about opening a merchant account with a Cyprus company, we kindly invite you to get in touch with our law firm in Cyprus.