All about Offshore Cards
Many wish to open an offshore account in a foreign bank, where they are offered offshore cards. It is rather a financial instrument that is issued by the payment entity or a bank outside the holder’s country of residence. The purpose of providing this card is to make credit purchases. As the name derives, “Anonymous Offshore Credit Card”, the main feature of such cards is its anonymity. There is also the opportunity to make payments in any country across the globe without restrictions. Introduction of the latest regulations associated with automatic information exchange has led tax agencies to compel banks to make reports. They are to report on all foreign accounts that were automatically opened with them. However, financial institutions issuing payment gateways and cards are exempted from information exchange regulations. They do not have to report this information type by switching offshore cards to non-reportable financial instruments. This is when the client possesses an offshore card be it nominative or anonymous. Information about the card is not reported by the bank to the corresponding tax agency.
Offshore card types
On opening an Offshore Bank Account, the client is provided with debit and credit cards. The card type offered will depend on their operations. Generally, they are of two types, namely, virtual cards and physical cards.
- Physical cards: The OFFSHORE BANK will send the card physically to the applicant’s home address. It will also include essential activation information to be performed immediately through online banking. The customer is free to perform any kind of activity using the physical offshore cards. He/she can make purchases in physical and/or online stores without any restriction.
- Virtual cards: The bank sends an email containing the card number along with activation data for activation purposes. These cards however come with one disadvantage. The customer does not get any physical card to use. Hence, there is no opportunity to use it to make purchases at physical stores.
Depending on his/her individual needs, the person can choose virtual or physical offshore cards. Financial institutions in the person’s country of residence issue debit and credit cards. Approval for credit card issuance however is at the discretion of the offshore financial entity. This is mostly based on the account holder’s credit history. The credit card might be approved or not. The reason is to stop possible fraudulent activities and defaults using the card.
However, there does exist a difference between offshore debit and credit cards. This difference lies in the cardholder’s responsibility against the entity. The debit card can be used depending on the amount present in the bank. On the other hand, the credit card offers the holder credit. The amount is pre-authorized by the bank. Logically, the bank is present within the jurisdiction that is separate from the cardholder. Hence, the risks possessed of issuing the credit card is more. The application can, however, plan to BUY OFFSHORE BANK credit cards anonymously.
Offshore card classification
From an anonymity and privacy point of view, financial institutions offer their account holders two offshore type cards.
- Offshore Non-transferable cards: These are cards having the cardholder’s name printed on them. This means the cardholder is the person to possess the card. The card‘s main feature is its associated cost and credit limit allowed to make purchases through virtual offshore POS terminals. The non-transferable card comes with an advantage. Payments can be made using such cards on various platforms like online casinos, Apple Pay, Google Pay, Amazon, PayPal, etc. With the cardholder making the purchase, it becomes easy to identify quickly potential fraudulent activities. Hence, it is completely safe to use.
- Offshore Anonymous Offshore Credit Card: These are considered to be cards offered by the financial institution. However, such cards do not come printed with the cardholder’s name on them. Also is not required any bank account to get hold of the card. This means the applicant does not need to possess an Offshore Bank Account to possess and use such cards. However, it also comes with its share of disadvantages. Such cards cannot be used to make payments on various financial platforms like Apple Pay, Google Pay, Amazon, PayPal, etc. The credit limits of such cards are also much lower when compared to the normal offshore non-transferable cards. The reason is that the cardholder is considered to be a financial entity. There is a liability contract present between the applicant and the entity.
Card balance top-up
The Offshore Bank Account allows the cardholder to top up the balance to increase the credit limits. The procedure to be followed to increase the limit is the same for both non-transferable and anonymous cards. The cards support three recharge modes, namely, Bitcoin, credit or debit card transfer and wire transfer.
Wire Transfer is considered to be the most commonly used method to recharge both non-transferable and anonymous offshore cards. The client (third party) or the cardholder is allowed to make the wire transfer. This is generally done in the OFFSHORE BANK name for which there is used a unique number present on the card. Hence, the cardholder’s name stays anonymous. It is the unique number that associates the payment and not the identity of the cardholder. Hence, the cardholder’s name remains anonymous.
Moreover, the third parties (his/her clients) or the client may recharge the anonymous or non-transferable card with another credit/debit card. This is performed using a payment link. For this purpose, the financial institution uses the ‘3D Secure’ security protocol to make such recharges.
The offshore card’s recharge system via Bitcoin can be presently available for only non-transferable cards. However, the client is allowed to charge as well as receive Bitcoins in his offshore account opened with the offshore bank. But he/she is not allowed to make payments using the non-transferable in case of Bitcoins.
Therefore getting to know the details about offshore cards can help you to apply for Anonymous Offshore Credit Card. Also, you can optimize the benefits derived and enjoy using the card to make credit purchases.
|
