An offshore credit card is the simplest and most cost-effective way of accessing funds from your offshore bank account. Offshore credit cards offer international convenience and flexibility at a fraction of the cost of wire transfers.
Why an Offshore Credit Card?
Although offshore debit, Prepaid and ATM cards are also a convenient way of accessing funds, there are times when only a credit card will do. Credit cards have wider acceptance worldwide, especially if you are travelling in more remote parts of the world where communications infrastructure may be poor. Even today, credit cards can be processed on manual paper vouchers where no electronic terminal is available, whereas most debit cards cannot.
Credit cards are also required for car rentals, hotel check-in etc where debit cards and even cash are not accepted, particularly in the USA.
Credit cards offer additional insurance benefits, often including travel insurance, medical insurance, collision damage waiver, lost luggage insurance etc for no extra cost when you pay for your travel using your credit card. Purchase protection is another popular feature. It is also easier to charge back transactions for faulty goods and services when you pay by credit card, compared to a debit card.
Credit cards also simplify your accounting since you typically only have to settle one bill at the end of the month, meaning just one accounting transaction on your main bank account.
Frequent travellers know it is always advisable to travel with various credit cards from different issuing banks and card brands, so if one doesn’t work you always have a backup.
Why are Offshore Credit Cards Secured?
Offshore Credit Cards are almost always issued on a secured basis for one simple reason: credit risk. What if you don’t pay the bill? Offshore banks will be unable to chase you and do not want to get involved in complicated international debt collection action. Offshore credit cards are issued with no credit check.
This means that along with the offshore credit card application you will have to deposit a certain amount, (usually 100-200% of the credit line). For example a credit line of USD 10,000 at 150%, you would need to deposit 15,000 USD for example. This will be blocked in a special account or certificate of deposit, and you will usually earn interest on this deposit.
Different offshore banks have differing procedures. For example, some require a 100% security deposit but your credit is not freed up until the previous month’s bill is settled. Others require a 200% security deposit but your credit line is automatically freed up at the beginning of the month, even though you have not yet settled the previous month’s bill. It really comes to the same thing.
Some of our banks do not require a specific security deposit but instead work on a rule of thumb where you should maintain an average balance at least ten times the card limit. So for example if you have USD 100,000 in an investment portfolio with the bank, they will give you a card with a monthly limit of USD 10,000.
How to Obtain Your Offshore Secured Credit Card from Offshore Pro Group
Exact terms and conditions for acquiring the cards vary depending on the banking partner, and can often be individually negotiated with the card issuing bank. We will help you by introducing you to the appropriate bank and assisting you in the negotiations. Please contact our consultants to discuss your individual requirements and they will offer the best selection of card possible. Normally our standard bank introduction service fees apply.
Secured credit cards with an offshore bank account in St. Lucia