Getting an offshore bank account is one thing, but having easy instant access to your offshore wealth can be another matter entirely. Many offshore accounts are opened remotely, and the majority of investors simply don't have the time or resources to visit a tax haven in person every time they need cash.
One of the best ways to overcome this problem, that is both timely and cost-effective is to use a prepaid offshore credit card. Handily, "ultra-private" prepaid cards are also some of the most discrete methods available of withdrawing cash and making purchases with your offshore funds.
Prepaid offshore credit cards come in various formats. But first, what is a prepaid offshore card?
An offshore credit card is nothing more than a card issued by a banking institution or card provider outside of your home jurisdiction. Investors frequently see offshore credit cards as a discrete and easy way of accessing their offshore stash. Therefore in many cases the issuing bank will be located in a country with strict bank secrecy.
A prepaid offshore card is an offshore credit card that is "loaded" up front with as much money as you want to put on it. Rather than offering a line of credit, the card is simply a way of making all the purchases you want to make without borrowing anything. It is a credit card, so-called, because the prepaid offshore card often carries a brand name like Mastercard, Visa or Discovery and is internationally accepted.
A prepaid credit card differs from an ATM card or simple bank card because you can use it for much more. You can make purchases online, at PoS and withdraw from cash machines. Withdrawal/purchase limits will vary from card to card
Prepaid cards are loaded by being individually funded. As such they are not intrinsically linked to any offshore bank account, like an offshore debit card. Prepaid cards are a more discrete option if privacy is your aim.
The most common type of prepaid offshore credit card will bear the holder's name. If you have a company you could also get one in your company's name. Ultra-private "un-embossed" cards exist which carry no name, although some are not accepted by individual merchants. They carry only the credit card number within the magnetic strip and chip, so when swiped none of your personal information is recorded. Click on the link at the bottom of the page for more information about offshore credit card privacy.
What ID do you need for a prepaid offshore credit card?
Just a scanned passport copy and a proof of residence are required by some issuers. Others may demand more detailed references or additional identification. Some prepaid cards with very low-limits can even be procured with no ID whatsoever. Fortunately, using a prepaid offshore credit card does not require any check of your credit history. Since the card is prepaid, you are not extended a credit line and therefore these checks are unnecessary. This makes prepaid cards a more private option than regular credit cards, since credit history checks are some of the greatest sources of confidential information leaks.
Offshore Pro Group
Monday 28 June 2010
Offshore Banking Bahamas, International Investment, Offshore Credit Cards
Bahamas is group of islands in the Atlantic Ocean near Florida with the capital Nassau and is one of the most popular, secure and successful offshore banking centers worldwide.
In addition to being one of the most attractive tourist destinations Bahamas has been a secure offshore banking center for several decades. Bahamas has been promoted as the best tax haven for offshore bank accounts, where flow of foreign exchange is free and deposits are not taxed. The legislation of offshore banking Bahamas allows establishment of international business companies and provision of offshore banking services for them. International investment in Bahamas has been very intensive and providing financial services to international business creates over 15% of GDP of Bahamas.
Offshore banking Bahamas brings a lot of convenience. Benefits offered by offshore banks are flexibility and easy accessibility of funds. Having a bank account at a bank in Bahamas does not mean that account owners have to travel there every time to make simple transaction like transferring money, withdrawing or depositing funds. First of all, offshore banking Bahamas offer offshore banking online – a convenient way to access personal or business accounts through Internet. Secondly they provide offshore debit and offshore credit cards to their clients that allow withdrawing and depositing funds through automated teller machines. In addition, important documents are mailed to the address specified by the client. Offshore bank account is managed in the similar way like an onshore bank account, only in this case, this is done Offshore Banking Bahamas through the Internet, mail, or phone instructions.
Bahamas bank accounts enjoy tax-free status and income is exempted from the taxes. In Bahamas, personal income is tax exempt, there is no capital gains tax, profit tax, sales tax, estate or inheritance tax. In addition no tax is levied on corporate dividends as well. Keeping money in offshore bank account places it out of reach of levies from law suits. This makes Bahamas very attractive for individuals and legal persons.
In general offshore banking institutions of Bahamas offer much lower service charges and much higher interest rates on deposits than banks in any other offshore jurisdictions. They also permit their customers to make transactions in world’s major currencies and be charged under considerably lower rates than onshore banks would have charged. Offshore bank accounts enjoy absolute freedom to transfer, deposit or spent available funds. Individuals and companies that require free environment Bahamas can be a perfect place to set up business entity.
Offshore Pro Group
In addition to being one of the most attractive tourist destinations Bahamas has been a secure offshore banking center for several decades. Bahamas has been promoted as the best tax haven for offshore bank accounts, where flow of foreign exchange is free and deposits are not taxed. The legislation of offshore banking Bahamas allows establishment of international business companies and provision of offshore banking services for them. International investment in Bahamas has been very intensive and providing financial services to international business creates over 15% of GDP of Bahamas.
Offshore banking Bahamas brings a lot of convenience. Benefits offered by offshore banks are flexibility and easy accessibility of funds. Having a bank account at a bank in Bahamas does not mean that account owners have to travel there every time to make simple transaction like transferring money, withdrawing or depositing funds. First of all, offshore banking Bahamas offer offshore banking online – a convenient way to access personal or business accounts through Internet. Secondly they provide offshore debit and offshore credit cards to their clients that allow withdrawing and depositing funds through automated teller machines. In addition, important documents are mailed to the address specified by the client. Offshore bank account is managed in the similar way like an onshore bank account, only in this case, this is done Offshore Banking Bahamas through the Internet, mail, or phone instructions.
Bahamas bank accounts enjoy tax-free status and income is exempted from the taxes. In Bahamas, personal income is tax exempt, there is no capital gains tax, profit tax, sales tax, estate or inheritance tax. In addition no tax is levied on corporate dividends as well. Keeping money in offshore bank account places it out of reach of levies from law suits. This makes Bahamas very attractive for individuals and legal persons.
In general offshore banking institutions of Bahamas offer much lower service charges and much higher interest rates on deposits than banks in any other offshore jurisdictions. They also permit their customers to make transactions in world’s major currencies and be charged under considerably lower rates than onshore banks would have charged. Offshore bank accounts enjoy absolute freedom to transfer, deposit or spent available funds. Individuals and companies that require free environment Bahamas can be a perfect place to set up business entity.
Offshore Pro Group
Friday 25 June 2010
US Bank Account as a Non-Resident - A Must to Make Money Online?
We all have Bank accounts in our respective home countries or residences. No problem with that - it is easy to get. We need this to run our lives, do our day to day activities off-line and so on. It is no big deal or a problem. So it is until I got online to make money two years ago.
When you get online and try to make money, then you realize that the rule of the game will change for you. Suddenly you will realize that you need a US Bank account with a Bank over there in the US. Why? Because 80%-90% of the Internet businesses are controlled by people in US / Canada. That is the way it is for now and in the foreseeable future. And I doubt if the equation is ever going to change at all.
When you want to make money online, in most cases the buyer will be a US native who is either using PayPal or a Credit card to pay for things online. You have got to hook up with PayPal by opening an account with them to receive your payments from other PayPal users. But PayPal only allows people from about 50 countries of the world to use her services. In other words, you can not open an account with them if you are not from these 48-50 countries. Then you realize you are stuck.
What is the alternative if this is your situation?
Get a Merchant account or a third party payment processor to take credit and debit cards payments for you. From our earlier equation, 80%-90% of the time, the guys will be in the US. When it is time for the card company to transfer your money to you less their charges, you are going to receive a check which might take 2-4 weeks to get to you, depending on your location. You get the check, assuming you are lucky it did not get lost in transit, and deposit the same with your Bank in your home country. Your bank sends the check for collection in US - another 2-4 weeks. In US, your funds get cleared in 2-3 business days. Then you get your credit. Now your Bank will charge you about $25 - $45 for the check: remember they have to pay DHL / FedEx to transport your check along with other documents, plus they are in business. Get it?
Now for all they care, your check may be for an amount of between $100 and $200, especially if you are just starting out. If you get 10 - 20 checks in a year (yes you can be getting many checks from various affiliate programs) you might find yourself paying $250 - $900 for the year.
Now compare yourself with someone with a US Bank account. He gets paid by what they call ACH (Automated Clearing House) system. This is just an electronic fund transfer system initiated by individual account owners in US to pay others within a network of some banks in US / Canada. This takes just 2-3 days and bang, your money is in your US bank account. It is mostly free to go. In some case you pay a token. I pay $3 to receive ACH into my US Bank account. I live in Africa and I have access to my funds by use of the Card issued to me by the US bank. I can withdraw money daily at the ATM in my country, no problem! My problem is to make the money go into my US bank account:- Also I can use my Card to buy things online, a privilege not enjoyed by many especially in the developing and under-developed countries.
Now you can see that it is a must for you to have a US bank account if you want to make and retain money from the Internet. But getting one is one of your greatest nightmares as a non-resident. A non-resident refers to the non-US citizens, having no residential base in the country. It is generally put in to the use by the country's banking sector.
The banking laws as it concerns a non-resident are very strict. It is almost impossible if you do not know how to go about it. The thing is complex and complicated and most Banks will just avoid doing this for non-residents. For them it is a mine field which only a few have mastered. I spent 4 years researching this after I found myself in the above situation earlier mentioned. In my case I even had money trapped with PayPal, after opening my account in PayPal with a US mailing address (perfectly legal).
I found a way to do it and this is now documented in a Special Report. If you need a US Bank account - I think you should get one and start making money online. This is an amazingly lucrative thing to do if mastered rightly. I have opened my US Bank account and I now sell through PayPal, having satisfied all their requirements. You can now get a US Bank account as a non-resident.
You do not need to incorporate a US Company before you can get a US Bank account. That is an expensive approach. Follow the above link to get what you need. I feel you have now realized the importance of a US account as a non-resident. So go ahead and get your own US Bank account now. Do not wait until tomorrow as the laws are constantly changing. What is possible today may not be possible tomorrow. ACT fast. Good Luck.
Offshore Pro Group
When you get online and try to make money, then you realize that the rule of the game will change for you. Suddenly you will realize that you need a US Bank account with a Bank over there in the US. Why? Because 80%-90% of the Internet businesses are controlled by people in US / Canada. That is the way it is for now and in the foreseeable future. And I doubt if the equation is ever going to change at all.
When you want to make money online, in most cases the buyer will be a US native who is either using PayPal or a Credit card to pay for things online. You have got to hook up with PayPal by opening an account with them to receive your payments from other PayPal users. But PayPal only allows people from about 50 countries of the world to use her services. In other words, you can not open an account with them if you are not from these 48-50 countries. Then you realize you are stuck.
What is the alternative if this is your situation?
Get a Merchant account or a third party payment processor to take credit and debit cards payments for you. From our earlier equation, 80%-90% of the time, the guys will be in the US. When it is time for the card company to transfer your money to you less their charges, you are going to receive a check which might take 2-4 weeks to get to you, depending on your location. You get the check, assuming you are lucky it did not get lost in transit, and deposit the same with your Bank in your home country. Your bank sends the check for collection in US - another 2-4 weeks. In US, your funds get cleared in 2-3 business days. Then you get your credit. Now your Bank will charge you about $25 - $45 for the check: remember they have to pay DHL / FedEx to transport your check along with other documents, plus they are in business. Get it?
Now for all they care, your check may be for an amount of between $100 and $200, especially if you are just starting out. If you get 10 - 20 checks in a year (yes you can be getting many checks from various affiliate programs) you might find yourself paying $250 - $900 for the year.
Now compare yourself with someone with a US Bank account. He gets paid by what they call ACH (Automated Clearing House) system. This is just an electronic fund transfer system initiated by individual account owners in US to pay others within a network of some banks in US / Canada. This takes just 2-3 days and bang, your money is in your US bank account. It is mostly free to go. In some case you pay a token. I pay $3 to receive ACH into my US Bank account. I live in Africa and I have access to my funds by use of the Card issued to me by the US bank. I can withdraw money daily at the ATM in my country, no problem! My problem is to make the money go into my US bank account:- Also I can use my Card to buy things online, a privilege not enjoyed by many especially in the developing and under-developed countries.
Now you can see that it is a must for you to have a US bank account if you want to make and retain money from the Internet. But getting one is one of your greatest nightmares as a non-resident. A non-resident refers to the non-US citizens, having no residential base in the country. It is generally put in to the use by the country's banking sector.
The banking laws as it concerns a non-resident are very strict. It is almost impossible if you do not know how to go about it. The thing is complex and complicated and most Banks will just avoid doing this for non-residents. For them it is a mine field which only a few have mastered. I spent 4 years researching this after I found myself in the above situation earlier mentioned. In my case I even had money trapped with PayPal, after opening my account in PayPal with a US mailing address (perfectly legal).
I found a way to do it and this is now documented in a Special Report. If you need a US Bank account - I think you should get one and start making money online. This is an amazingly lucrative thing to do if mastered rightly. I have opened my US Bank account and I now sell through PayPal, having satisfied all their requirements. You can now get a US Bank account as a non-resident.
You do not need to incorporate a US Company before you can get a US Bank account. That is an expensive approach. Follow the above link to get what you need. I feel you have now realized the importance of a US account as a non-resident. So go ahead and get your own US Bank account now. Do not wait until tomorrow as the laws are constantly changing. What is possible today may not be possible tomorrow. ACT fast. Good Luck.
Offshore Pro Group
Getting to grips with offshore banking
You might already think that you know all you need to about private offshore banking, but if you’ve got a fair bit of capital to manage and could do with re-structuring your finances, then it is probably right up your alley.
Private Offshore Banking is designed to offer a personalised, tailor-made service which will optimise your existing assets, preserve your wealth and generally make your financial life a lot easier.
Offshore private banks cater for a wide variety of clients; from expatriates and international executives, to those looking to establish an effective way to transfer wealth to their heirs. It’s ideal for people looking to diversify their funds internationally while guarding against unnecessary taxes and minimising financial uncertainty, alongside those who need the flexibility and freedom of efficiently dealing in more than one currency.
The background
Historically, private Banking has tended to be seen as quite elitist, with certain institutions imposing stringent criteria when it comes to choosing their clientele. To some extent this is true and certain banks ask for a minimum deposit of around £500,000 – £1 million, but in recent years most banks have begun to offer similar services to customers with just a tenth of this kind of cash in their back pocket.
Private banks pride themselves on offering a diverse range of services to their clients including wealth management, savings, estate planning, trusts, and all kinds of tax planning. Private Offshore Banking means that you will benefit from all of these, alongside the assurance that your account will be based in a tax haven.
Similarly, if you wish to move a certain amount of money onshore, your personal relationship manager (RM) is already aware of your individual circumstances and can suggest the best way to mitigate against any unnecessary Capital Gains Tax (CGT).
One thing is for certain; private Banking means that there is no mis-selling and no fobbing you off with products that you don’t really need. RMs are there to help you structure your finances appropriately, and not simply earn commission based on the specific products you invest in. You also benefit from the close-knit support network surrounding each RM; if you are looking to invest in a fund, they will first consult an investment specialist to advise on the most appropriate decision for you.
Decisions, decisions…
If you’re set on the idea of channelling your fortune into an offshore private bank account, then the next question is which one to choose.
Looking for the ideal bank might seem like looking for a needle in a haystack, but if you are serious about your investments and have a large chunk of money to deposit, it’s worth familiarising yourself with the winners of Euromoney’s annual global private Banking awards.
The awards rank the best private banks according to their wealth management services, profitability, ratio of clients to relationship managers and services offered – so you know if it’s sitting pretty at the top of the list, as UBS was at the 2007 awards, then it offers a top notch, all round service.
General consensus is that the bigger the bank, the better your funds will be taken care of. This is to some degree rooted in truth considering an international financial institution with a steadfast reputation has an exceedingly slim chance of going bust, meaning your funds are in very safe hands. With this in mind, the best choice for most expats will probably be a global private bank with a well-established branch in your chosen jurisdiction.
The Isle of Man, Jersey and Guernsey all play host to a wealth of offshore private banks, although the stereotypical Swiss bank account still lives on. Switzerland currently controls an estimated 35 per cent of the world's private and institutional offshore funds, equating to a monetary value of 4.6 trillion Swiss francs or around £1.9 trillion.
Certain types of offshore account, such as the Dual Currency Deposit account offered by Royal Bank of Canada (RBC), will protect against currency fluctuations, allowing expats to deposit capital at a fixed exchange rate and, as long as the desired currency has not seen a marked depreciation in value, investors can then withdraw it at the agreed rate.
The inner workings
Offshore private Banking in the 21st century is regarded as more of a bespoke gateway into investment management rather than the traditional ‘family’ relationship built on generations of trust, however it undoubtedly still offers a highly personalised service.
As a result, relationship managers have assumed the position of objective Financial adviser and sounding board, rather than just the service provider. In addition, RMs will only work with a handful of other clients – lower net wealth individuals Banking with RBC will share theirs with an average of 50-60 others – meaning that you don’t end up getting a watered down service.
Individuals opening an offshore private bank account will not have to compromise on the usual, tangible benefits either. Offshore clients will be granted universally accepted debit and credit cards, cheque books in different currencies and global ATM access, as well as interest paid gross and favourable foreign exchange facilities.
What should I look for?
Moving from your comfort zone can be daunting so make sure you know what you want to achieve. Familiarise yourself with the average annual management fee, as well as the cost for any extras – remember that although extras are great, you shouldn’t skimp on the services you really need in order to obtain them.
If you are serious about investing, it will also be of benefit to find out how well equity managers have done over the past 5-10 years, alongside the range of bespoke services offered and how far the specific advisory services extend.
Offshore Pro Group
Private Offshore Banking is designed to offer a personalised, tailor-made service which will optimise your existing assets, preserve your wealth and generally make your financial life a lot easier.
Offshore private banks cater for a wide variety of clients; from expatriates and international executives, to those looking to establish an effective way to transfer wealth to their heirs. It’s ideal for people looking to diversify their funds internationally while guarding against unnecessary taxes and minimising financial uncertainty, alongside those who need the flexibility and freedom of efficiently dealing in more than one currency.
The background
Historically, private Banking has tended to be seen as quite elitist, with certain institutions imposing stringent criteria when it comes to choosing their clientele. To some extent this is true and certain banks ask for a minimum deposit of around £500,000 – £1 million, but in recent years most banks have begun to offer similar services to customers with just a tenth of this kind of cash in their back pocket.
Private banks pride themselves on offering a diverse range of services to their clients including wealth management, savings, estate planning, trusts, and all kinds of tax planning. Private Offshore Banking means that you will benefit from all of these, alongside the assurance that your account will be based in a tax haven.
Similarly, if you wish to move a certain amount of money onshore, your personal relationship manager (RM) is already aware of your individual circumstances and can suggest the best way to mitigate against any unnecessary Capital Gains Tax (CGT).
One thing is for certain; private Banking means that there is no mis-selling and no fobbing you off with products that you don’t really need. RMs are there to help you structure your finances appropriately, and not simply earn commission based on the specific products you invest in. You also benefit from the close-knit support network surrounding each RM; if you are looking to invest in a fund, they will first consult an investment specialist to advise on the most appropriate decision for you.
Decisions, decisions…
If you’re set on the idea of channelling your fortune into an offshore private bank account, then the next question is which one to choose.
Looking for the ideal bank might seem like looking for a needle in a haystack, but if you are serious about your investments and have a large chunk of money to deposit, it’s worth familiarising yourself with the winners of Euromoney’s annual global private Banking awards.
The awards rank the best private banks according to their wealth management services, profitability, ratio of clients to relationship managers and services offered – so you know if it’s sitting pretty at the top of the list, as UBS was at the 2007 awards, then it offers a top notch, all round service.
General consensus is that the bigger the bank, the better your funds will be taken care of. This is to some degree rooted in truth considering an international financial institution with a steadfast reputation has an exceedingly slim chance of going bust, meaning your funds are in very safe hands. With this in mind, the best choice for most expats will probably be a global private bank with a well-established branch in your chosen jurisdiction.
The Isle of Man, Jersey and Guernsey all play host to a wealth of offshore private banks, although the stereotypical Swiss bank account still lives on. Switzerland currently controls an estimated 35 per cent of the world's private and institutional offshore funds, equating to a monetary value of 4.6 trillion Swiss francs or around £1.9 trillion.
Certain types of offshore account, such as the Dual Currency Deposit account offered by Royal Bank of Canada (RBC), will protect against currency fluctuations, allowing expats to deposit capital at a fixed exchange rate and, as long as the desired currency has not seen a marked depreciation in value, investors can then withdraw it at the agreed rate.
The inner workings
Offshore private Banking in the 21st century is regarded as more of a bespoke gateway into investment management rather than the traditional ‘family’ relationship built on generations of trust, however it undoubtedly still offers a highly personalised service.
As a result, relationship managers have assumed the position of objective Financial adviser and sounding board, rather than just the service provider. In addition, RMs will only work with a handful of other clients – lower net wealth individuals Banking with RBC will share theirs with an average of 50-60 others – meaning that you don’t end up getting a watered down service.
Individuals opening an offshore private bank account will not have to compromise on the usual, tangible benefits either. Offshore clients will be granted universally accepted debit and credit cards, cheque books in different currencies and global ATM access, as well as interest paid gross and favourable foreign exchange facilities.
What should I look for?
Moving from your comfort zone can be daunting so make sure you know what you want to achieve. Familiarise yourself with the average annual management fee, as well as the cost for any extras – remember that although extras are great, you shouldn’t skimp on the services you really need in order to obtain them.
If you are serious about investing, it will also be of benefit to find out how well equity managers have done over the past 5-10 years, alongside the range of bespoke services offered and how far the specific advisory services extend.
Offshore Pro Group
Saturday 19 June 2010
Hiding Money Offshore
Hiding Money Offshore
You place your money with someone offshore. They declare that the money is theirs, and you deny that the money is yours. The money then grows tax-free, and your creditors can’t get it since you will deny that it exists.
The Problems
Whoever you’ve given your money disappears with it, or will not give it back, and you can’t go to the authorities for fear of revealing that you have committed tax evasion.
Whoever you’ve given your money to not only keeps your money, but actually extorts additional money out of you, which you pay so that they don’t reveal that you have committed tax evasion.
Frequency
This happens ALL THE TIME. Every day some sucker gets off his or her cruise liner at some offshore centre, walks over to the nearest offshore service provider and says "I want a trust and a secret bank account" and then hands them the money. And, about once a month, a publication such as Offshore Alert or a scam site somewhere will run a story about how an offshore service provider disappeared with their clients' money.
We wish we could find a statistical breakdown of how much money disappears by the process, but I can't because the inherently secretive nature of these transactions means that there is no reporting upon which such statistics could be based. However, we estimate that worldwide it is easily in excess of US$100 million annually, and perhaps much more.
Commentary
It is easy to get sucked in by offshore service providers (after all, the major offshore banks encourage you to have secret accounts) because there is a "Hide the Money" atmosphere offshore. They will show you the laws of the offshore jurisdiction (which, after all, are structured just for this very purpose) and tell you that there is "no way" that the Revenuers could ever find out what you have done.
The rub is, however, that for this to work you can’t declare that you have an interest in the account or report any interest earned on the account. This means that you are committing tax evasion -- a very serious crime. This means that if the offshore service provider simply keeps your money and refuses to give it back, you are pretty much screwed. You can’t go to your government to complain, and the government of the country where you placed your money will probably protect the offshore service provider more than you (after all, it is bad business if it admits that an offshore service provider was embezzling money). So, you’re just screwed -- and worse the offshore service provider might start embezzling even more money out of you by telling you that they will turn you in (and send you to prison and ruin your life) if you don’t cooperate.
Solution
The solution is to JUST DON’T DO IT. Don’t ever trust your money to anybody but yourself, or a well-regulated bank or trust company. And don’t try to hide your money from the IRS -- life is too short for the grief of worrying about this. Structure your affairs so that you can disclaim the money when creditors come knocking, but if you really own it report it to the IRS and pay your taxes on it (there are a variety of ways that you can legally declare it to the IRS while at the same time innoculating it from creditors, such as by forming an offshore limited partnership) and then keep it in a respected and regulated offshore bank or trust company.
Because if you hide the money, the next most likely thing to happen is that your money will then be hidden from you.
Report of Foreign Bank and Financial Accounts
If you own a foreign bank account, stock account, mutual fund, unit trust, or other financial account, then you may be required to file a Treasury Department Form 90-22.1, which provides in part as follows:
This form should be used to report financial interest in or signature authority or other authority over one or more bank accounts, securities accounts, or other financial accounts in foreign countries as required by the Department of the Treasury Regulations (31 CFR 103). You are not required to file a report if the aggregate value of the accounts did not exceed $10,000. SEE INSTRUCTIONS ON BACK FOR DEFINITIONS. File this form with Dept. of the Treasury, P.O. Box 32621, Detroit, MI 48232
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INSTRUCTIONS
A. Who Must File a Report -- Each United States person who has a financial interest in or signature authority or other authority over a bank, securities, or other financial accounts in a foreign country, which exceeds $10,000 in aggregate value at any time during the calendar year, must report that relationship each calendar year by filing TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.
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B. United States Person -- The term "United States person" means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.
D. Account in a Foreign Country -- A "foreign country" includes all geographical areas located outside the United States, Guam, Puerto Rico, and the Virgin Islands.
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F. Bank, Financial Account -- The term "bank account" means a savings, demand, checking, deposit, loan or any other account maintained with a financial institution or other person engaged in the business of banking. It includes certificates of deposit.
The term "securities account" means an account maintained with a financial institution or other person who buys, sells, holds, or trades stock or other securities for the benefit of another.
The term "other financial account" means any other account maintained with a financial institution or other person who accepts deposits, exchanges or transmits funds, or acts as a broker or dealer for future transactions in any commodity on (or subject to the rules of) a commodity exchange or association.
G. Financial Interest -- A financial interest in a bank, securities, or other financial account in a foreign country means an interest described in either of the following two paragraphs:
(1) A United States person has a financial interest in each account for which such person is the owner of records or has legal title, whether the account is maintained for his or her own benefit or for the benefit of other including non-United States persons. If an account is maintained in the name of two persons jointly, or if several persons each own a partial interest in an account, each of those United States persons has a financial interest in that account.
(2) A United States person has a financial interest in each bank, securities, or other financial account in a foreign country for which the owner of record or holder of legal title is: (a) a person acting as an agent, nominee, attorney, or in some other capacity on behalf of the U.S. person; (b) a corporation in which the United States person owns directly or indirectly more than 50 percent of the total value of shares of stock; (c) a partnership in which the United States person owns an interest in more than 50 percent of the profits (distributive share of income); or (d) a trust in which the United States person either has a present beneficial interest in more than 50 percent of the assets or from which such person receives more than 50 percent of the current income.
H. Signature or Other Authority Over an Account --
Signature Authority -- A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.
Other authority -- exists in a person who can exercise comparable power over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.
I. Account Valuation -- For items 7, 9, [of the form] and Instruction A, the maximum value of an account is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statement issued for the applicable year. If periodic statements are not so issued, the maximum account asset value is the largest amount of currency and non-monetary assets in the account at any time during the year.
* * *
O. Penalties -- For criminal penalties for failure to file a report, supply information, and for filing a false or fraudulent report see 31 U.S.C. 5322(a), 31 U.S.C. 5322(b), and 18 U.S.C. 1001.
Would this include a debit card? Yes! -- Many offshore service providers will tell you that they will own the account, but you will get a debit card to use, and the debit card does not trigger the filing of the TD F 90-22.1. This is completely false, as a debit card clearly constitutes authority over the account. Use of a debt card for an unreported account over $10,000 is tax evasion.
Will the filing of this form cause me to get hung up in Customs or audited? This is a stupid question, if you think about it. The Treasury Department is looking for people who don't file the form, not those who have filed it. If you shuffle tens of thousands of dollars in and out of the country by wire-transfer every year and then don't file the TD F 90-22.1, you can pretty much count on being audited and then forever hung up in Customs.
Offshore Pro Group
You place your money with someone offshore. They declare that the money is theirs, and you deny that the money is yours. The money then grows tax-free, and your creditors can’t get it since you will deny that it exists.
The Problems
Whoever you’ve given your money disappears with it, or will not give it back, and you can’t go to the authorities for fear of revealing that you have committed tax evasion.
Whoever you’ve given your money to not only keeps your money, but actually extorts additional money out of you, which you pay so that they don’t reveal that you have committed tax evasion.
Frequency
This happens ALL THE TIME. Every day some sucker gets off his or her cruise liner at some offshore centre, walks over to the nearest offshore service provider and says "I want a trust and a secret bank account" and then hands them the money. And, about once a month, a publication such as Offshore Alert or a scam site somewhere will run a story about how an offshore service provider disappeared with their clients' money.
We wish we could find a statistical breakdown of how much money disappears by the process, but I can't because the inherently secretive nature of these transactions means that there is no reporting upon which such statistics could be based. However, we estimate that worldwide it is easily in excess of US$100 million annually, and perhaps much more.
Commentary
It is easy to get sucked in by offshore service providers (after all, the major offshore banks encourage you to have secret accounts) because there is a "Hide the Money" atmosphere offshore. They will show you the laws of the offshore jurisdiction (which, after all, are structured just for this very purpose) and tell you that there is "no way" that the Revenuers could ever find out what you have done.
The rub is, however, that for this to work you can’t declare that you have an interest in the account or report any interest earned on the account. This means that you are committing tax evasion -- a very serious crime. This means that if the offshore service provider simply keeps your money and refuses to give it back, you are pretty much screwed. You can’t go to your government to complain, and the government of the country where you placed your money will probably protect the offshore service provider more than you (after all, it is bad business if it admits that an offshore service provider was embezzling money). So, you’re just screwed -- and worse the offshore service provider might start embezzling even more money out of you by telling you that they will turn you in (and send you to prison and ruin your life) if you don’t cooperate.
Solution
The solution is to JUST DON’T DO IT. Don’t ever trust your money to anybody but yourself, or a well-regulated bank or trust company. And don’t try to hide your money from the IRS -- life is too short for the grief of worrying about this. Structure your affairs so that you can disclaim the money when creditors come knocking, but if you really own it report it to the IRS and pay your taxes on it (there are a variety of ways that you can legally declare it to the IRS while at the same time innoculating it from creditors, such as by forming an offshore limited partnership) and then keep it in a respected and regulated offshore bank or trust company.
Because if you hide the money, the next most likely thing to happen is that your money will then be hidden from you.
Report of Foreign Bank and Financial Accounts
If you own a foreign bank account, stock account, mutual fund, unit trust, or other financial account, then you may be required to file a Treasury Department Form 90-22.1, which provides in part as follows:
This form should be used to report financial interest in or signature authority or other authority over one or more bank accounts, securities accounts, or other financial accounts in foreign countries as required by the Department of the Treasury Regulations (31 CFR 103). You are not required to file a report if the aggregate value of the accounts did not exceed $10,000. SEE INSTRUCTIONS ON BACK FOR DEFINITIONS. File this form with Dept. of the Treasury, P.O. Box 32621, Detroit, MI 48232
* * *
INSTRUCTIONS
A. Who Must File a Report -- Each United States person who has a financial interest in or signature authority or other authority over a bank, securities, or other financial accounts in a foreign country, which exceeds $10,000 in aggregate value at any time during the calendar year, must report that relationship each calendar year by filing TD F 90-22.1 with the Department of the Treasury on or before June 30, of the succeeding year.
* * *
B. United States Person -- The term "United States person" means (1) a citizen or resident of the United States, (2) a domestic partnership, (3) a domestic corporation, or (4) a domestic estate or trust.
D. Account in a Foreign Country -- A "foreign country" includes all geographical areas located outside the United States, Guam, Puerto Rico, and the Virgin Islands.
* * *
F. Bank, Financial Account -- The term "bank account" means a savings, demand, checking, deposit, loan or any other account maintained with a financial institution or other person engaged in the business of banking. It includes certificates of deposit.
The term "securities account" means an account maintained with a financial institution or other person who buys, sells, holds, or trades stock or other securities for the benefit of another.
The term "other financial account" means any other account maintained with a financial institution or other person who accepts deposits, exchanges or transmits funds, or acts as a broker or dealer for future transactions in any commodity on (or subject to the rules of) a commodity exchange or association.
G. Financial Interest -- A financial interest in a bank, securities, or other financial account in a foreign country means an interest described in either of the following two paragraphs:
(1) A United States person has a financial interest in each account for which such person is the owner of records or has legal title, whether the account is maintained for his or her own benefit or for the benefit of other including non-United States persons. If an account is maintained in the name of two persons jointly, or if several persons each own a partial interest in an account, each of those United States persons has a financial interest in that account.
(2) A United States person has a financial interest in each bank, securities, or other financial account in a foreign country for which the owner of record or holder of legal title is: (a) a person acting as an agent, nominee, attorney, or in some other capacity on behalf of the U.S. person; (b) a corporation in which the United States person owns directly or indirectly more than 50 percent of the total value of shares of stock; (c) a partnership in which the United States person owns an interest in more than 50 percent of the profits (distributive share of income); or (d) a trust in which the United States person either has a present beneficial interest in more than 50 percent of the assets or from which such person receives more than 50 percent of the current income.
H. Signature or Other Authority Over an Account --
Signature Authority -- A person has signature authority over an account if such person can control the disposition of money or other property in it by delivery of a document containing his or her signature (or his or her signature and that of one or more other persons) to the bank or other person with whom the account is maintained.
Other authority -- exists in a person who can exercise comparable power over an account by direct communication to the bank or other person with whom the account is maintained, either orally or by some other means.
I. Account Valuation -- For items 7, 9, [of the form] and Instruction A, the maximum value of an account is the largest amount of currency and non-monetary assets that appear on any quarterly or more frequent account statement issued for the applicable year. If periodic statements are not so issued, the maximum account asset value is the largest amount of currency and non-monetary assets in the account at any time during the year.
* * *
O. Penalties -- For criminal penalties for failure to file a report, supply information, and for filing a false or fraudulent report see 31 U.S.C. 5322(a), 31 U.S.C. 5322(b), and 18 U.S.C. 1001.
Would this include a debit card? Yes! -- Many offshore service providers will tell you that they will own the account, but you will get a debit card to use, and the debit card does not trigger the filing of the TD F 90-22.1. This is completely false, as a debit card clearly constitutes authority over the account. Use of a debt card for an unreported account over $10,000 is tax evasion.
Will the filing of this form cause me to get hung up in Customs or audited? This is a stupid question, if you think about it. The Treasury Department is looking for people who don't file the form, not those who have filed it. If you shuffle tens of thousands of dollars in and out of the country by wire-transfer every year and then don't file the TD F 90-22.1, you can pretty much count on being audited and then forever hung up in Customs.
Offshore Pro Group
Offshore Pitfalls
Offshore Pitfalls
Restructuring your finances offshore is an important step towards personal liberty and financial privacy. However, it is of utmost importance that you do your due diligence prior to sending your hard earned money offshore. Unfortunately, the offshore legal and financial world is full of shady banks, trust companies, law firms, and a wide host of unscrupulous financial consultants that are foaming at the mouth to scam you from your life savings. By following our 7 cardinal rules of offshore, you should be able to stay out of trouble.
Seven Cardinal Rules of Offshore
Rule # 1: Don't put all of your eggs in one basket. When going offshore for the first time, be cautious and initially transfer only a small portion of your overall wealth. If that small portion amounts to a sizeable sum of money, then open a few accounts at separate banks or brokerage firms, to diversify among several financial institutions.
Rule # 2: Don't put your money in Offshore Trust Companies. Today's offshore trust companies offer essentially the same services as banks - some even provide you with debit cards, checkbooks, internet access and investment trading. However, trust companies are not banks! In most reputable offshore jurisdictions, banks are regulated by a specific banking authority established for the purpose of monitoring and regulating banks credit policies, investments, liquidity, etc. Offshore trust companies are not regulated the way banks are, so they basically have a license to steal! Essentially, when you put your money into a trust company, you are signing away your rights to your own money. If the trust company goes bankrupt, you can kiss your hard earned money goodbye.
Rule # 3: Don't put your money in jurisdictions where banking laws are not enforced. When selecting an offshore bank, it is important that the bank be located in a jurisdiction where the government has good banking laws in place, and they are enforced by a competent authority. Otherwise, the bank will have the freedom to embezzle all of the depositors funds and get away with it. Panama and Switzerland, for example, have excellent banking laws, and competent authorities that enforce those laws. However, there are a handful of other jurisdictions that we cannot say the same for.
Rule # 4: Don't put your money in extremely small private banks. In many offshore jurisdictions, one can obtain an offshore banking license for as little as US$100,000, including capitalization. There are dozens of small start-up offshore internet banks offering their services on the web - stay away from them! Make sure that the bank has been around for at least 5 years, and the bank holds deposits of at least US$300 million. Be sure to ask who the banks independent auditors are, and make sure they are reputable. Also, every reputable bank publicly provides published consolidated financial statements - ask for them to verify the banks financial stability.
Rule # 5: Don't allow lawyers, consultants, or nominee directors to sign on your accounts. When opening offshore accounts, it is important to have complete signatory control, or to only allow TRUSTED individuals to sign on your accounts. Many offshore firms secretly appoint their nominee directors as signatories when they assist you in opening your corporate accounts, which enables them to deduct their annual fees, management fees, etc. Beware, because most of them will also throw in a secret " annual account management fee", which is normally about 3% or more of your funds! Ask for full disclosure of fees prior to establishing your offshore structure and/or accounts. If you want the extra privacy of having a lawyer, consultant, or nominee sign on your account, be sure there is a signed account management agreement or fiduciary agreement to document the responsibilities of each party.
Rule # 6: Always ask for references. When dealing with law firms, financial consultants, or any other offshore organization, be sure to ask for professional commercial references, and verify them. If their references are not known, reputable organizations, then they are not worth considering as references. You must be 100% confident that your law firm or financial consultant is reputable, otherwise, they can potentially perpetrate your financial accounts after you have funded them.
Rule # 7: Take caution in using your offshore accounts. It is important to use caution, and basic common sense when using your offshore accounts. Think of your offshore accounts as a "nest egg" for that rainy day - as a back up in case you get sued or divorced, etc.. Don't use your offshore accounts as you do your personal domestic accounts. For example, don't use your offshore debit card or checkbook to pay your personal bills (phone, cable, electric, etc.).
Offshore Pro Group
Restructuring your finances offshore is an important step towards personal liberty and financial privacy. However, it is of utmost importance that you do your due diligence prior to sending your hard earned money offshore. Unfortunately, the offshore legal and financial world is full of shady banks, trust companies, law firms, and a wide host of unscrupulous financial consultants that are foaming at the mouth to scam you from your life savings. By following our 7 cardinal rules of offshore, you should be able to stay out of trouble.
Seven Cardinal Rules of Offshore
Rule # 1: Don't put all of your eggs in one basket. When going offshore for the first time, be cautious and initially transfer only a small portion of your overall wealth. If that small portion amounts to a sizeable sum of money, then open a few accounts at separate banks or brokerage firms, to diversify among several financial institutions.
Rule # 2: Don't put your money in Offshore Trust Companies. Today's offshore trust companies offer essentially the same services as banks - some even provide you with debit cards, checkbooks, internet access and investment trading. However, trust companies are not banks! In most reputable offshore jurisdictions, banks are regulated by a specific banking authority established for the purpose of monitoring and regulating banks credit policies, investments, liquidity, etc. Offshore trust companies are not regulated the way banks are, so they basically have a license to steal! Essentially, when you put your money into a trust company, you are signing away your rights to your own money. If the trust company goes bankrupt, you can kiss your hard earned money goodbye.
Rule # 3: Don't put your money in jurisdictions where banking laws are not enforced. When selecting an offshore bank, it is important that the bank be located in a jurisdiction where the government has good banking laws in place, and they are enforced by a competent authority. Otherwise, the bank will have the freedom to embezzle all of the depositors funds and get away with it. Panama and Switzerland, for example, have excellent banking laws, and competent authorities that enforce those laws. However, there are a handful of other jurisdictions that we cannot say the same for.
Rule # 4: Don't put your money in extremely small private banks. In many offshore jurisdictions, one can obtain an offshore banking license for as little as US$100,000, including capitalization. There are dozens of small start-up offshore internet banks offering their services on the web - stay away from them! Make sure that the bank has been around for at least 5 years, and the bank holds deposits of at least US$300 million. Be sure to ask who the banks independent auditors are, and make sure they are reputable. Also, every reputable bank publicly provides published consolidated financial statements - ask for them to verify the banks financial stability.
Rule # 5: Don't allow lawyers, consultants, or nominee directors to sign on your accounts. When opening offshore accounts, it is important to have complete signatory control, or to only allow TRUSTED individuals to sign on your accounts. Many offshore firms secretly appoint their nominee directors as signatories when they assist you in opening your corporate accounts, which enables them to deduct their annual fees, management fees, etc. Beware, because most of them will also throw in a secret " annual account management fee", which is normally about 3% or more of your funds! Ask for full disclosure of fees prior to establishing your offshore structure and/or accounts. If you want the extra privacy of having a lawyer, consultant, or nominee sign on your account, be sure there is a signed account management agreement or fiduciary agreement to document the responsibilities of each party.
Rule # 6: Always ask for references. When dealing with law firms, financial consultants, or any other offshore organization, be sure to ask for professional commercial references, and verify them. If their references are not known, reputable organizations, then they are not worth considering as references. You must be 100% confident that your law firm or financial consultant is reputable, otherwise, they can potentially perpetrate your financial accounts after you have funded them.
Rule # 7: Take caution in using your offshore accounts. It is important to use caution, and basic common sense when using your offshore accounts. Think of your offshore accounts as a "nest egg" for that rainy day - as a back up in case you get sued or divorced, etc.. Don't use your offshore accounts as you do your personal domestic accounts. For example, don't use your offshore debit card or checkbook to pay your personal bills (phone, cable, electric, etc.).
Offshore Pro Group
Friday 18 June 2010
Complete Panama Offshore Structure
Complete Panama Offshore Structure
The complete Panama offshore structure that we generally recommend to our clients is a dual entity structure consisting of a Panama Private Interest Foundation holding ownership of a Panama International Business Corporation.
We recommend the dual entity structure because it provides the utmost in asset protection, anonymity, privacy, and convenience. The Panama corporation holds all major assets, such as commercial businesses, real estate, intellectual property, etc. and the Panama private interest foundation acts as a holding company to the Panama corporation, receiving profits into the Panama bank accounts and Panama brokerage accounts of the Panama foundation.
To understand the entire role of the Panama private interest foundation within this structure, you first have to understand the composition of the private interest foundation. The private interest foundation has four main members:
Founder: The founder is the person or entity that forms the private interest foundation in the public registry of Panama. Unless you wish to be appointed as the publicly registered founder, our firm generally provides a nominee founder, and provides you with a pre-signed, undated letter of resignation from the founder immediately upon incorporation of the foundation.
Foundation Council: The council serves the same function to the private interest foundation as directors do to a corporation. The council's names and passport numbers are registered in the public registry when the foundation is incorporated. Unless you wish to be appointed on the publicly registered council, we generally provide a nominee council, and provide pre-signed, undated letters of resignation from the nominee council.
Protector: The Protector is the ultimate controller of the Panama foundation. Immediately upon incorporation of the foundation, the council appoints a Protector, through a notarized Private Protectorate Document. Since the document is a private, not publicly registered document, the Protector remains 100% anonymous. From that point on, the Protector has full control over the foundation and all of its assets. The Protector generally signs and controls all offshore bank accounts that are in the name of the Panama Foundation.
Beneficiaries: The Beneficiaries are appointed through a Private Letter of Wishes, which is written by the Protector. The letter of wishes is a private document, so the beneficiaries remain 100% anonymous. The letter of wishes can be changed or modified at any time by the Protector only. The letter of wishes is essentially the same as a living will of the Panama Foundation, which generally explains who the beneficiaries are, what the assets include, and how the assets are to be distributed to the beneficiaries and upon what triggering event (such as the death or incapacity of the Protector).
The Panama Private Interest Foundation is established to serve five primary purposes:
1. Provides you with Anonymity by serving as a holding entity for your offshore Panama Corporation: Using the Private Interest Foundation, you can avoid the use of corporation bearer shares and/or corporations shares that are issued to your personal name. The Private interest Foundation can be named as the share holder on the share certificates of one or more offshore corporations. You control the foundation anonymously through a Private Protectorate role. As Protector, you appoint the beneficiaries through a private letter of wishes (or a more formal set of foundation By-Laws). Since both the Protector and the Beneficiaries are both appointed through non-public (private) documents, they remain 100% anonymous and confidential.
2. Serves as an asset protection vehicle to protect your assets to the fullest extent of the law: Under the Panamanian foundation law, the Panama Foundations assets are "non-embargable", and "non-sequesterable", meaning that no one may freeze the assets, or place liens on the assets under any circumstances, which makes the Panama Foundation the ultimate offshore asset protection vehicle.
3. Serves as beneficial owner to your offshore corporation when opening offshore bank accounts: Today, due to the global scare of terrorism, etc. most offshore tax haven jurisdictions have implemented laws that require their banks to obtain "declarations of beneficial ownership" when establishing corporate offshore bank accounts. Keep in mind that in most offshore jurisdictions, such as Panama, the banks are required to maintain this information under strict confidentiality under the bank secrecy laws that are strictly enforced. However, if you do not wish to declare yourself personally as the beneficial owner when applying for your corporate offshore bank accounts, the foundation can serve as the beneficial owner / shareholder for the corporation.
4. Serve as a testamentary vehicle for distribution of your assets to your heirs: The Panama Private Interest Foundation is specifically designed to cherish, protect, and distribute your assets to your beneficiaries upon a triggering event, such as your death or incapacity. Your Panama foundations letter of wishes, written by the Protector, will serve as its "living will", detailing the foundations assets, list of beneficiaries, and how and when those assets are to be distributed to the beneficiaries. Under Panama laws, through the Panama Private Interest Foundation your heirs can receive their inheritance free of probate, gift taxes, estate taxes, inheritance taxes, or legal delays.
5. Serve as a vehicle to facilitate the transference of funds offshore: The Private Interest Foundation may receive private donations, and it may give donations/grants, etc. to anyone you choose. Hence, you can privately donate your funds to the Panama Private interest Foundation. In turn, the Private Interest foundation can provide educational grants, charitable donations, etc. to anyone you choose. Please note, however, that the Panama Private Interest Foundation may not publicly solicit donations.
Our Complete Panama Offshore Structure Package, for only US$3,050 includes the following:
1. Panama Private Interest Foundation, complete with;
Original Private Interest Foundation Charter in Spanish, registered in the public registry.
Official English translation of the Private Interest Foundation Charter.
Nominee Foundation Council (optional) with pre-signed, undated letters of resignation, notarized.
Private Protectorate Document, notarized.
General Power of Attorney, with notary and apostil seal.
Foundation Letter of Wishes (draft sample provided for you to complete).
Corporate offshore brokerage account, with optional Debit Card, and Internet access.
Corporate Franchise Taxes Paid for first year.
2. Panama International Business Corporation, complete with;
Original Articles of Incorporation in Spanish, registered in the public registry.
Official English translation of the Articles of Incorporation.
Nominee Directors (optional) with pre-signed, undated letters of resignation, notarized.
First meeting of the board of directors, whereby the nominee subscribers renounce their rights to one share each, and 100% of the company shares are issued.
Company Share Certificate issued to the name of your foundation.
General Power of Attorney, with notary and apostil seal.
Corporate brokerage account, with optional Debit Card, and Internet access.
Corporate offshore brokerage account, with optional Debit Card, and Internet access.
Corporate Franchise Taxes paid for first year.
3. Panama Corporate Bank Account (in the name of either your Panama corporation or Panama Private Interest foundation):
Established through any of our correspondent banks in Panama, Andorra, Liechtenstein, Switzerland, Antigua, Belize, Latvia or St. Vincent.
Optional Offshore Debit cards are available.
Optional Secured Offshore Credit Cards are available.
Online offshore banking is available.
Multi currency offshore accounts are available.
4. General Manager Contract:
Contract between yourself and your corporation (or foundation), documenting your role as General Manager (not a director, just a manager). Enables you to receive a salary and/or commissions from offshore, and justifies your income. Justify yourself as signatory on the company (or foundation) accounts, as well as using the company debit card and/or checkbook for business expenses, travel, etc.
5. Mail Forwarding Service, includes:
Corporate Post Office (P.O.) Box in Panama to receive post mail for your Panama corporation & Panama foundation.
Physical address in Panama to receive courier packages for your Panama corporation & Panama foundation.
Forwarding service via post mail, courier, fax, or scanned email attachment.
6. Courier Included: Documents are shipped by 3 day courier service (FedEx, DHL, UPS, or TNT).
To summarize, for only US$3,050 you are receiving all of the following!
Panama Foundation (With First Year's Annual Corporate Franchise Taxes Paid)
Panama Corporation (With First Year's Annual Corporate Franchise Taxes Paid)
2 Corporate Offshore Brokerage Accounts
1 Corporate Offshore Bank Account
General Manager Agreement
Mail Forwarding Service
Delivery of Documents via 3 Day Courier Service
Offshore Pro Group
The complete Panama offshore structure that we generally recommend to our clients is a dual entity structure consisting of a Panama Private Interest Foundation holding ownership of a Panama International Business Corporation.
We recommend the dual entity structure because it provides the utmost in asset protection, anonymity, privacy, and convenience. The Panama corporation holds all major assets, such as commercial businesses, real estate, intellectual property, etc. and the Panama private interest foundation acts as a holding company to the Panama corporation, receiving profits into the Panama bank accounts and Panama brokerage accounts of the Panama foundation.
To understand the entire role of the Panama private interest foundation within this structure, you first have to understand the composition of the private interest foundation. The private interest foundation has four main members:
Founder: The founder is the person or entity that forms the private interest foundation in the public registry of Panama. Unless you wish to be appointed as the publicly registered founder, our firm generally provides a nominee founder, and provides you with a pre-signed, undated letter of resignation from the founder immediately upon incorporation of the foundation.
Foundation Council: The council serves the same function to the private interest foundation as directors do to a corporation. The council's names and passport numbers are registered in the public registry when the foundation is incorporated. Unless you wish to be appointed on the publicly registered council, we generally provide a nominee council, and provide pre-signed, undated letters of resignation from the nominee council.
Protector: The Protector is the ultimate controller of the Panama foundation. Immediately upon incorporation of the foundation, the council appoints a Protector, through a notarized Private Protectorate Document. Since the document is a private, not publicly registered document, the Protector remains 100% anonymous. From that point on, the Protector has full control over the foundation and all of its assets. The Protector generally signs and controls all offshore bank accounts that are in the name of the Panama Foundation.
Beneficiaries: The Beneficiaries are appointed through a Private Letter of Wishes, which is written by the Protector. The letter of wishes is a private document, so the beneficiaries remain 100% anonymous. The letter of wishes can be changed or modified at any time by the Protector only. The letter of wishes is essentially the same as a living will of the Panama Foundation, which generally explains who the beneficiaries are, what the assets include, and how the assets are to be distributed to the beneficiaries and upon what triggering event (such as the death or incapacity of the Protector).
The Panama Private Interest Foundation is established to serve five primary purposes:
1. Provides you with Anonymity by serving as a holding entity for your offshore Panama Corporation: Using the Private Interest Foundation, you can avoid the use of corporation bearer shares and/or corporations shares that are issued to your personal name. The Private interest Foundation can be named as the share holder on the share certificates of one or more offshore corporations. You control the foundation anonymously through a Private Protectorate role. As Protector, you appoint the beneficiaries through a private letter of wishes (or a more formal set of foundation By-Laws). Since both the Protector and the Beneficiaries are both appointed through non-public (private) documents, they remain 100% anonymous and confidential.
2. Serves as an asset protection vehicle to protect your assets to the fullest extent of the law: Under the Panamanian foundation law, the Panama Foundations assets are "non-embargable", and "non-sequesterable", meaning that no one may freeze the assets, or place liens on the assets under any circumstances, which makes the Panama Foundation the ultimate offshore asset protection vehicle.
3. Serves as beneficial owner to your offshore corporation when opening offshore bank accounts: Today, due to the global scare of terrorism, etc. most offshore tax haven jurisdictions have implemented laws that require their banks to obtain "declarations of beneficial ownership" when establishing corporate offshore bank accounts. Keep in mind that in most offshore jurisdictions, such as Panama, the banks are required to maintain this information under strict confidentiality under the bank secrecy laws that are strictly enforced. However, if you do not wish to declare yourself personally as the beneficial owner when applying for your corporate offshore bank accounts, the foundation can serve as the beneficial owner / shareholder for the corporation.
4. Serve as a testamentary vehicle for distribution of your assets to your heirs: The Panama Private Interest Foundation is specifically designed to cherish, protect, and distribute your assets to your beneficiaries upon a triggering event, such as your death or incapacity. Your Panama foundations letter of wishes, written by the Protector, will serve as its "living will", detailing the foundations assets, list of beneficiaries, and how and when those assets are to be distributed to the beneficiaries. Under Panama laws, through the Panama Private Interest Foundation your heirs can receive their inheritance free of probate, gift taxes, estate taxes, inheritance taxes, or legal delays.
5. Serve as a vehicle to facilitate the transference of funds offshore: The Private Interest Foundation may receive private donations, and it may give donations/grants, etc. to anyone you choose. Hence, you can privately donate your funds to the Panama Private interest Foundation. In turn, the Private Interest foundation can provide educational grants, charitable donations, etc. to anyone you choose. Please note, however, that the Panama Private Interest Foundation may not publicly solicit donations.
Our Complete Panama Offshore Structure Package, for only US$3,050 includes the following:
1. Panama Private Interest Foundation, complete with;
Original Private Interest Foundation Charter in Spanish, registered in the public registry.
Official English translation of the Private Interest Foundation Charter.
Nominee Foundation Council (optional) with pre-signed, undated letters of resignation, notarized.
Private Protectorate Document, notarized.
General Power of Attorney, with notary and apostil seal.
Foundation Letter of Wishes (draft sample provided for you to complete).
Corporate offshore brokerage account, with optional Debit Card, and Internet access.
Corporate Franchise Taxes Paid for first year.
2. Panama International Business Corporation, complete with;
Original Articles of Incorporation in Spanish, registered in the public registry.
Official English translation of the Articles of Incorporation.
Nominee Directors (optional) with pre-signed, undated letters of resignation, notarized.
First meeting of the board of directors, whereby the nominee subscribers renounce their rights to one share each, and 100% of the company shares are issued.
Company Share Certificate issued to the name of your foundation.
General Power of Attorney, with notary and apostil seal.
Corporate brokerage account, with optional Debit Card, and Internet access.
Corporate offshore brokerage account, with optional Debit Card, and Internet access.
Corporate Franchise Taxes paid for first year.
3. Panama Corporate Bank Account (in the name of either your Panama corporation or Panama Private Interest foundation):
Established through any of our correspondent banks in Panama, Andorra, Liechtenstein, Switzerland, Antigua, Belize, Latvia or St. Vincent.
Optional Offshore Debit cards are available.
Optional Secured Offshore Credit Cards are available.
Online offshore banking is available.
Multi currency offshore accounts are available.
4. General Manager Contract:
Contract between yourself and your corporation (or foundation), documenting your role as General Manager (not a director, just a manager). Enables you to receive a salary and/or commissions from offshore, and justifies your income. Justify yourself as signatory on the company (or foundation) accounts, as well as using the company debit card and/or checkbook for business expenses, travel, etc.
5. Mail Forwarding Service, includes:
Corporate Post Office (P.O.) Box in Panama to receive post mail for your Panama corporation & Panama foundation.
Physical address in Panama to receive courier packages for your Panama corporation & Panama foundation.
Forwarding service via post mail, courier, fax, or scanned email attachment.
6. Courier Included: Documents are shipped by 3 day courier service (FedEx, DHL, UPS, or TNT).
To summarize, for only US$3,050 you are receiving all of the following!
Panama Foundation (With First Year's Annual Corporate Franchise Taxes Paid)
Panama Corporation (With First Year's Annual Corporate Franchise Taxes Paid)
2 Corporate Offshore Brokerage Accounts
1 Corporate Offshore Bank Account
General Manager Agreement
Mail Forwarding Service
Delivery of Documents via 3 Day Courier Service
Offshore Pro Group
Manage your Credit Card Accounts Online, as well as your Banking
The internet has certainly revolutionised the way that we conduct our day-to-day banking. Although still available as options at most high street banks, it is now no longer necessary to queue in your local branch or pick up the telephone, as our banking can all be done with the click of a mouse, or even more so these days by the tap of a touch screen.
Indeed, now that the internet is available on so many different platforms and devices, including smart phones and over 3G, it is now possible to access you bank account details in just about any location. For those with internet browsing facilities on their mobile phones, the ability to bank online is only limited by the availability of their mobile operator's signal.
Mobile broadband has also made internet banking even more convenient. Simply plug the dongle, into your laptop wherever you are, and you can have instant access to online banking! So, if you choose to do it half-way up at a mountain at 3.00 a.m. in the morning then you can, providing there is a 3G signal.
Most banks offer the majority, if not all the facilities online that can performed in person in the branch or over the telephone such as setting up direct debits, standing orders, checking balances, transferring money between accounts and even applying for overdraft facilities.
But, it's not just current account banking that can be done over the internet, but credit card accounts can also be maintained online, either through your bank or via your credit card company. Indeed, many financial institutions now offer the option to go 'paperless' and rather than despatched by post they are sent via email. If that facility is not available, then most offer the option to view your statements online as well as details of any transactions incurred since your last credit card statement was produced.
With the threat of strike action causing postal disruption throughout summer 2009, the option to review statements online will ensure that you don't incur late payment charges as a result of the non-arrival of your paper statement.
Using the internet to access your credit card account also allows you to request a change to your credit limit, the ability to quickly and conveniently perform balance transfers and the option to make additional payments to your account.
Online operation of a credit card account, just like with bank accounts, certainly makes life easier for people who never seem to have enough hours in the day to get to the bank or phone their credit card company.
Offshore Pro Group
Indeed, now that the internet is available on so many different platforms and devices, including smart phones and over 3G, it is now possible to access you bank account details in just about any location. For those with internet browsing facilities on their mobile phones, the ability to bank online is only limited by the availability of their mobile operator's signal.
Mobile broadband has also made internet banking even more convenient. Simply plug the dongle, into your laptop wherever you are, and you can have instant access to online banking! So, if you choose to do it half-way up at a mountain at 3.00 a.m. in the morning then you can, providing there is a 3G signal.
Most banks offer the majority, if not all the facilities online that can performed in person in the branch or over the telephone such as setting up direct debits, standing orders, checking balances, transferring money between accounts and even applying for overdraft facilities.
But, it's not just current account banking that can be done over the internet, but credit card accounts can also be maintained online, either through your bank or via your credit card company. Indeed, many financial institutions now offer the option to go 'paperless' and rather than despatched by post they are sent via email. If that facility is not available, then most offer the option to view your statements online as well as details of any transactions incurred since your last credit card statement was produced.
With the threat of strike action causing postal disruption throughout summer 2009, the option to review statements online will ensure that you don't incur late payment charges as a result of the non-arrival of your paper statement.
Using the internet to access your credit card account also allows you to request a change to your credit limit, the ability to quickly and conveniently perform balance transfers and the option to make additional payments to your account.
Online operation of a credit card account, just like with bank accounts, certainly makes life easier for people who never seem to have enough hours in the day to get to the bank or phone their credit card company.
Offshore Pro Group
Tuesday 15 June 2010
Retail Store Credit Card Traps to AvoidAlmost everyone likes to do retail shopping, and it is especially fun when stores are offering sales and discou
Almost everyone likes to do retail shopping, and it is especially fun when stores are offering sales and discounts. But there are lots of times when it is better to ignore the retail store credit card offers, despite the allure of getting a discount on your first purchase at the cash register, and instead stick with paying by cash or with your regular go-to credit card. For starters, there are really no additional benefits that come to you for owning a retail chain’s credit card – except for occasional discounts on purchases or special offers. If you get a card for a clothing store in the mall, for example, you cannot use it to pay for a hotel room, a meal in a restaurant, or your purchases at stores in the mall that are not owned by the same identical company. You might be able to use your Gap card at Banana Republic because they are both owned by the same conglomerate corporation, for instance, but if you try to use that Gap card to pay for groceries or rent a car you won’t get very far. That’s because these in-store cards are not affiliated with major card companies like Visa, MasterCard, or American Express. They aren’t tied into the banking ATM system, either, so they will never offer the kinds of flexibility and convenience that comes from carrying a conventional credit card.
Then there is the issue of your FICO score and credit history. Although store charge cards don’t offer the perks of a Visa or MasterCard, they do report to credit rating agencies. So while you might get an instant 10 percent discount on your purchase at a retail store because you applied for their credit card, you might also lose 10 percent of your all-important credit rating because it will show up on your FICO report that you have an additional source of potential debt – namely a new credit card. Each time your credit score is accessed as part of a credit card application, you also take a hit on your credit score. So applying for 2-3 retail store cards during a shopping spree could really torpedo your overall credit score and then make it hard for you to buy a car, get a mortgage, or apply for a traditional credit card.
The interest rates charged on most retail store cards are really high compared with regular credit cards, too, so if you use your card and then carry a balance, you will instantly give back a portion of that savings you enjoyed by getting a store discount when you applied for your card. Let’s say, for example, that you buy a $200 wardrobe and get a 10 percent discount. You save $20 right off the bat. But if the interest rate is 20 percent and you carry a balance, you’ll wind up paying at least $40 a year just in interest. So if you carry the balance and pay it back over a period of three or four months you might also pay $10 or $12 in interest – so you really only saved $8 or $10 at the cash register. Keep using your card and charging new purchases while carrying a balance, and you can wind up forking over a ridiculous amount of money in interest payments. Let’s say you keep a running balance of $500, for instance, at 20 percent interest. That’s going to cost you around $100 a year – which can buy a lot of clothes at a seasonal sales event. If you happen to make a late payment, you’ll get hit with penalties and a much higher permanent interest rate, so you’ll totally wreck any plans to save money and will wind up paying so much more for those store purchases than you ever anticipated doing.
When it does make sense to use a store credit card is when you are a frequent customer and you also never carry a balance but pay off whatever you owe as soon as your store charge card bill arrives. Then you might save money on shipping if you shop online – because some stores offer free shipping to those who use their retail charge card – and you might get some special member or VIP discounts now and then.
But for most consumers – even if you are a frequent shopper at a particular store or chain – a standard credit card usually makes more sense. You can get a rewards card that offers you cash back or rebates, for example, so that instead of waiting around for a retail store discount you can accrue some incremental discounts all the time – on all of your purchases.
Offshore Pro Group
Then there is the issue of your FICO score and credit history. Although store charge cards don’t offer the perks of a Visa or MasterCard, they do report to credit rating agencies. So while you might get an instant 10 percent discount on your purchase at a retail store because you applied for their credit card, you might also lose 10 percent of your all-important credit rating because it will show up on your FICO report that you have an additional source of potential debt – namely a new credit card. Each time your credit score is accessed as part of a credit card application, you also take a hit on your credit score. So applying for 2-3 retail store cards during a shopping spree could really torpedo your overall credit score and then make it hard for you to buy a car, get a mortgage, or apply for a traditional credit card.
The interest rates charged on most retail store cards are really high compared with regular credit cards, too, so if you use your card and then carry a balance, you will instantly give back a portion of that savings you enjoyed by getting a store discount when you applied for your card. Let’s say, for example, that you buy a $200 wardrobe and get a 10 percent discount. You save $20 right off the bat. But if the interest rate is 20 percent and you carry a balance, you’ll wind up paying at least $40 a year just in interest. So if you carry the balance and pay it back over a period of three or four months you might also pay $10 or $12 in interest – so you really only saved $8 or $10 at the cash register. Keep using your card and charging new purchases while carrying a balance, and you can wind up forking over a ridiculous amount of money in interest payments. Let’s say you keep a running balance of $500, for instance, at 20 percent interest. That’s going to cost you around $100 a year – which can buy a lot of clothes at a seasonal sales event. If you happen to make a late payment, you’ll get hit with penalties and a much higher permanent interest rate, so you’ll totally wreck any plans to save money and will wind up paying so much more for those store purchases than you ever anticipated doing.
When it does make sense to use a store credit card is when you are a frequent customer and you also never carry a balance but pay off whatever you owe as soon as your store charge card bill arrives. Then you might save money on shipping if you shop online – because some stores offer free shipping to those who use their retail charge card – and you might get some special member or VIP discounts now and then.
But for most consumers – even if you are a frequent shopper at a particular store or chain – a standard credit card usually makes more sense. You can get a rewards card that offers you cash back or rebates, for example, so that instead of waiting around for a retail store discount you can accrue some incremental discounts all the time – on all of your purchases.
Offshore Pro Group
Government takes aim at "excessive" credit card rates
The government plans to give financial regulators more power to define and ban "excessive" interest rates for credit and store cards as part of its strategy to improve consumer protection in the UK.
In their programme for the next five years, the Conservatives and the Liberal Democrats also said that they oblige credit card firms to provide information to customers in a "uniform electronic format" that will make it easier for borrowers to find out if they are getting the best deal.
Furthermore, the coalition plans to introduce a seven-day "cooling-off period" for store cards.
Other measures in the government's plans include ending "unfair" bank charges and fees for certain financial transactions.
Commenting on the plans, moneysupermarket.com head of banking Kevin Mountford said that while it is good to see the coalition "nail its colours to the mast" regarding consumer protection, its focus for credit card rates should be on improving transparency, rather than capping charges.
"Inevitably, if the banks' bottom line is affected they will find other ways to recoup lost revenue so that consumers will end up paying in another area," he added.
Total consumer credit lending, which includes personal loans and credit cards, stood at £222 billion in March, according to Credit Action.
Offshore Pro Group
In their programme for the next five years, the Conservatives and the Liberal Democrats also said that they oblige credit card firms to provide information to customers in a "uniform electronic format" that will make it easier for borrowers to find out if they are getting the best deal.
Furthermore, the coalition plans to introduce a seven-day "cooling-off period" for store cards.
Other measures in the government's plans include ending "unfair" bank charges and fees for certain financial transactions.
Commenting on the plans, moneysupermarket.com head of banking Kevin Mountford said that while it is good to see the coalition "nail its colours to the mast" regarding consumer protection, its focus for credit card rates should be on improving transparency, rather than capping charges.
"Inevitably, if the banks' bottom line is affected they will find other ways to recoup lost revenue so that consumers will end up paying in another area," he added.
Total consumer credit lending, which includes personal loans and credit cards, stood at £222 billion in March, according to Credit Action.
Offshore Pro Group
Sunday 13 June 2010
Reloadable Debit ATM Card – The Card with Money Power
Reloadable Debit ATM Card – The Card with Money Power
If you were planning to go on a tour, then the best mode carrying your money would be the Reloadable Debit ATM cash Card. With this card one can access their money from any ATM around the world. There is no need of exchanging money in the foreign country.
In fact this is one of the best modes of transferring money to someone overseas from the convenience of your home. It is also good for having money in a foreign country without the hassle of exchanging the money. One gets complete security and safety in the usage of the money. The card does not contain any name of the owner. There is only a number to be seen on it. The card expires after a period of two years after its issue. Anyone can apply for the card, without regards to nationality, credit history or country or residence.
This prepaid card provides "stored value" in which you can store money in an account. You can access it with your card at any of the ATM machine.
The Card is issued by a Caribbean bank. There is option to fund directly of 2.00% through wire transfers and Western Union only. One can feel safe and secure that all the ATM card transaction could be traced irrespective of the card being linked to any account directly. As there is no name printed on the card, the privacy of the card is all the more secured.
In spite of many cards with different usage, all the cards functions in the same way. Employers will find the card a useful way to transfer the salary of their employees. One can also send a card to someone as a gift. A great utility of the card is to send money to relatives overseas. The insurance companies can use the card to pay claims. There are many more uses of the card.
It needs mentioning that ATM Card is more secure that cash. One can get replacement of their card is stolen, which is not the case with cash. It is beyond the capacity of somebody to steal your cash without knowing your pin. As ATM Travel card can be used globally, there is no worry to exchange your money as you go to other countries. Offshore Pro Group
If you were planning to go on a tour, then the best mode carrying your money would be the Reloadable Debit ATM cash Card. With this card one can access their money from any ATM around the world. There is no need of exchanging money in the foreign country.
In fact this is one of the best modes of transferring money to someone overseas from the convenience of your home. It is also good for having money in a foreign country without the hassle of exchanging the money. One gets complete security and safety in the usage of the money. The card does not contain any name of the owner. There is only a number to be seen on it. The card expires after a period of two years after its issue. Anyone can apply for the card, without regards to nationality, credit history or country or residence.
This prepaid card provides "stored value" in which you can store money in an account. You can access it with your card at any of the ATM machine.
The Card is issued by a Caribbean bank. There is option to fund directly of 2.00% through wire transfers and Western Union only. One can feel safe and secure that all the ATM card transaction could be traced irrespective of the card being linked to any account directly. As there is no name printed on the card, the privacy of the card is all the more secured.
In spite of many cards with different usage, all the cards functions in the same way. Employers will find the card a useful way to transfer the salary of their employees. One can also send a card to someone as a gift. A great utility of the card is to send money to relatives overseas. The insurance companies can use the card to pay claims. There are many more uses of the card.
It needs mentioning that ATM Card is more secure that cash. One can get replacement of their card is stolen, which is not the case with cash. It is beyond the capacity of somebody to steal your cash without knowing your pin. As ATM Travel card can be used globally, there is no worry to exchange your money as you go to other countries. Offshore Pro Group
Private Offshore Debit Card Basics
The increasing danger of personal bank accounts being more and more prone to bureaucratic invasions of privacy has lead people to search for ways how to keep their bank accounts secret. As more and more people learn to maximize their creativity and resources thus letting them earn money out of their normal system the government is coming up with more and more ways to track the money made from these activities. And so there are now fewer and fewer ways to place money safely out of the reach of the government, which is the most eager to get a hold of it.
Private offshore debit cards have become the best way to enhance one's privacy over his finances. With offshore bank accounts that are fully anonymous to the government, the offshore debit cardholders are given unlimited control and freedom of their hard earned money. With the great boom and growth in the offshore bank account industry fees for such accounts and their related offshore debit cards have become very cheap and now anyone can afford them. The reduction of the tax load brought about by keeping money offshore alone is enough reason to get an offshore debit card.
Introduction to Private Offshore Debit Card
The private offshore debit card is a financial instrument that can be used to withdraw funds the cardholder have deposited on his card provider's affiliate offshore bank. An offshore debit card does not require any credit checks so everyone is eligible to have them. The card can be used in almost any ATM around the world. The card also provides the advantage of being able to draw funds in foreign currency, very convenient for those who are traveling abroad.
Using an offshore debit card is safer than carrying cash and more convenient than using personal checks. The card can be used to withdraw cash or pay merchants at millions of locations all around the world. The offshore debit card can be issued in a corporate name or in the name of the provider to keep the holder's financial identity strictly private.
Clarifications on Offshore Debit Card Basics
1. Traditional Credit Card
The old fashioned credit card allows the holder to buy on credit and pay the balance at a later time to the credit card company. The cardholder thus spends money he currently does not have and pays later, with interests of course.
2. Debit Card
The debit card does not allow credit spending as it only allows the holder to spend the cash he has in his bank account. The debit card is directly linked to the holder's personal savings or checking account also referred to as the primary account. All charges the holder incurs are debited to the primary account, and there are no huge monthly charges. The same account may have a checkbook tied to it as well.
3. Secured Credit Card
The secured credit card contains two accounts: a frozen bank account with the funds which act as a guarantee for the card - and the actual credit card account. Statements are mailed only in the months when something is charged to the account, unless the balance for the preceding month has yet to be paid off in full. And you are obliged to make a minimum monthly payment of 10% of the outstanding balance within a couple of weeks from receiving your statement.
Some Uses of a Private Offshore Debit Card
1. Spend your offshore funds while travelling, give supplementary cards to your family or even to people you don't want your family to know about.
2. Helps prevent your movements from being tracked by Big Brother. Although we might try to use cash, it is almost impossible to check into a good hotel or rent a car without a major credit card or offshore debit card.
3. A confidential card to match your second passport, as part of an overall privacy strategy
4. Pay for an alternative internet connection, or buy services over the Internet.
Offshore Pro Group
Private offshore debit cards have become the best way to enhance one's privacy over his finances. With offshore bank accounts that are fully anonymous to the government, the offshore debit cardholders are given unlimited control and freedom of their hard earned money. With the great boom and growth in the offshore bank account industry fees for such accounts and their related offshore debit cards have become very cheap and now anyone can afford them. The reduction of the tax load brought about by keeping money offshore alone is enough reason to get an offshore debit card.
Introduction to Private Offshore Debit Card
The private offshore debit card is a financial instrument that can be used to withdraw funds the cardholder have deposited on his card provider's affiliate offshore bank. An offshore debit card does not require any credit checks so everyone is eligible to have them. The card can be used in almost any ATM around the world. The card also provides the advantage of being able to draw funds in foreign currency, very convenient for those who are traveling abroad.
Using an offshore debit card is safer than carrying cash and more convenient than using personal checks. The card can be used to withdraw cash or pay merchants at millions of locations all around the world. The offshore debit card can be issued in a corporate name or in the name of the provider to keep the holder's financial identity strictly private.
Clarifications on Offshore Debit Card Basics
1. Traditional Credit Card
The old fashioned credit card allows the holder to buy on credit and pay the balance at a later time to the credit card company. The cardholder thus spends money he currently does not have and pays later, with interests of course.
2. Debit Card
The debit card does not allow credit spending as it only allows the holder to spend the cash he has in his bank account. The debit card is directly linked to the holder's personal savings or checking account also referred to as the primary account. All charges the holder incurs are debited to the primary account, and there are no huge monthly charges. The same account may have a checkbook tied to it as well.
3. Secured Credit Card
The secured credit card contains two accounts: a frozen bank account with the funds which act as a guarantee for the card - and the actual credit card account. Statements are mailed only in the months when something is charged to the account, unless the balance for the preceding month has yet to be paid off in full. And you are obliged to make a minimum monthly payment of 10% of the outstanding balance within a couple of weeks from receiving your statement.
Some Uses of a Private Offshore Debit Card
1. Spend your offshore funds while travelling, give supplementary cards to your family or even to people you don't want your family to know about.
2. Helps prevent your movements from being tracked by Big Brother. Although we might try to use cash, it is almost impossible to check into a good hotel or rent a car without a major credit card or offshore debit card.
3. A confidential card to match your second passport, as part of an overall privacy strategy
4. Pay for an alternative internet connection, or buy services over the Internet.
Offshore Pro Group
Saturday 12 June 2010
Getting a Secret Offshore Bank Card
The easiest and most cost-effective way of withdrawing funds from your secret offshore account will almost certainly be through the use of an offshore bank card.
Used in the right way, offshore bank cards
can execute financial transactions that leave almost no trace of your identity, but, generally speaking, the larger the transaction the harder it is to keep secret.
The cheapest card you might get can be a gift card, which is paid for upfront. You may be able to load up to 1000USD on to each gift card you purchase without having to identify yourself. Other specialist "card providers" can provide a similar service. You can purchase one of these by wiring funds from your offshore account to a specialist card-loading account, and then have your card sent via mail. Then again there are "virtual cards", so-called because you possess only the number rather than a physical card. These can be very secretive, but are not suitable for day-to-day use.
Brand-name debit and credit cards like Visa and MasterCard will always require identification, at the very least a notarized passport copy and utility bill. It is still possible however, to effectively shield your financial transactions from the great majority of "outsiders".
One of the most common ways is to get a card in the name of your offshore company. In this way your company name will appear on the card, your company name is registered when the card is swiped or the chip is read, and your company name will appear on all receipts. If this company is located in a tax haven with strong bank secrecy, and company records like the names of directors are hard to access, it will be extremely difficult for an outsider to pierce the "corporate veil", and identify the flesh and blood person behind the transaction.
Using a brand name card is often preferential to gift cards, or simple cash cards because it has a much wider reach. From personal experience I have had "bank cards" issued by the local branch of a an international bank in a low-tax jurisdiction, which did not work at any ATM outside the country where they were issued. Even worse, I could not access my money from international bank's branch in a different country, no matter what ID I supplied. Funds were essentially "landlocked".
By contrast, a brand-name card like Visa or MasterCard will allow you to access your funds from anywhere in the world. Since the card providers know who you are, you lose confidentiality using these cards at home.
But for day-to-day purchases on vacation, online purchases into thousands of dollars, their ease-of-use and high-limits, brand name cards are easier. Furthermore you can be sure that it will work wherever you go, and you can be sure of cash in an emergency.
Offshore Pro Group
Used in the right way, offshore bank cards
can execute financial transactions that leave almost no trace of your identity, but, generally speaking, the larger the transaction the harder it is to keep secret.
The cheapest card you might get can be a gift card, which is paid for upfront. You may be able to load up to 1000USD on to each gift card you purchase without having to identify yourself. Other specialist "card providers" can provide a similar service. You can purchase one of these by wiring funds from your offshore account to a specialist card-loading account, and then have your card sent via mail. Then again there are "virtual cards", so-called because you possess only the number rather than a physical card. These can be very secretive, but are not suitable for day-to-day use.
Brand-name debit and credit cards like Visa and MasterCard will always require identification, at the very least a notarized passport copy and utility bill. It is still possible however, to effectively shield your financial transactions from the great majority of "outsiders".
One of the most common ways is to get a card in the name of your offshore company. In this way your company name will appear on the card, your company name is registered when the card is swiped or the chip is read, and your company name will appear on all receipts. If this company is located in a tax haven with strong bank secrecy, and company records like the names of directors are hard to access, it will be extremely difficult for an outsider to pierce the "corporate veil", and identify the flesh and blood person behind the transaction.
Using a brand name card is often preferential to gift cards, or simple cash cards because it has a much wider reach. From personal experience I have had "bank cards" issued by the local branch of a an international bank in a low-tax jurisdiction, which did not work at any ATM outside the country where they were issued. Even worse, I could not access my money from international bank's branch in a different country, no matter what ID I supplied. Funds were essentially "landlocked".
By contrast, a brand-name card like Visa or MasterCard will allow you to access your funds from anywhere in the world. Since the card providers know who you are, you lose confidentiality using these cards at home.
But for day-to-day purchases on vacation, online purchases into thousands of dollars, their ease-of-use and high-limits, brand name cards are easier. Furthermore you can be sure that it will work wherever you go, and you can be sure of cash in an emergency.
Offshore Pro Group
Top 5 Offshore Credit Card Mistakes
Everyone knows how hard it is to get a functional offshore credit card that's also half-way private.
It's not your fault.
Legislation like the patriot act makes it intentionally difficult for anyone to be secretive, regardless of whether the activity is illegal or not. Of all offshore transactions, an incredibly small number are illegal, yet offshore banking and the desire for privacy are routinely censured and dumped into the same basket as money-laundering.
Getting your offshore credit card or offshore debit card can be as easy or as difficult as you wish to make it. Fortunately, by the end of this article you will be much better prepared for the journey ahead.
If you are looking for privacy, ease-of-use and a card that actually works, avoid these 5 offshore credit card mistakes.
1) Getting a card that's issued in the wrong country. Its all well and good getting an ''offshore credit card'' from an offshore bank. But where is the card actually issued? If it's in a jurisdiction which has information exchange treaties with your home country, this is not a good idea. The best countries for card issue will be those with strong bank secrecy, good banking and little connection to your domicile.
2) Using your card at home. If the whole point of purchasing your offshore credit card is to prevent 3rd parties from discovering who you are, don't use your card at home. You may have the most high-tech anonymous unembossed card available, but that won't stop individual retailers or the cameras at an atm from recording you.
3) Cards with limited usability. Offshore credit cards issued by an offshore bank in a blacklisted jurisdiction may offer little functionality. Maybe it will be difficult for you to fund your card account because of the tax haven's reputation, or even worse your transactions may be automatically flagged as suspicious. Then again, some bank cards
issued out of tax havens with undeveloped banking may not even work internationally.
4) Cards issued in your own name. If privacy is not a great issue, then a card that bears your own name will not represent much problem. But I would guess that for the majority of those reading this article, confidentiality is key. In this case, the best type of card will be that issued in the name of an offshore company, or one that bears no-name at all. The advantage of the company card is that transactions made with it are company transactions, more so if you are not a beneficial owner or director of the offshore company. A no-name or ''unembossed'' card offers the advantage of not revealing anything more than a card number when swiped. Your financial identity remains secret.
5) Cards with low transaction limits. If there's any advice you can take away from this article it is ''read the small print''. So you pay several hundred dollars for a credit card thinking that it will be possible to buy your dream automobile or yacht with your shiny new plastic, but then you find out the purchase limits are tiny or the card loading and ATM fees are phenomenal. If this is the case, you may begin to wonder if it was worthwhile getting an offshore credit card in the first place. Ensure that the credit card has decent purchase limits, that you can use it online, in shops, restaurants and gas stations, and that almost any ATM worldwide will accept it. The best way to achieve this is to get a brand name bank card like an offshore visa or offshore MasterCard.
Perhaps after reading this, you may have decided that getting an offshore credit card isn't right for you. But if you do decide to get your card, you can now enter into a discussion with offshore service providers and other vendors with greater confidence, and knowledge of what seperates a card of true value from a rip-off.
Offshore Pro Group
It's not your fault.
Legislation like the patriot act makes it intentionally difficult for anyone to be secretive, regardless of whether the activity is illegal or not. Of all offshore transactions, an incredibly small number are illegal, yet offshore banking and the desire for privacy are routinely censured and dumped into the same basket as money-laundering.
Getting your offshore credit card or offshore debit card can be as easy or as difficult as you wish to make it. Fortunately, by the end of this article you will be much better prepared for the journey ahead.
If you are looking for privacy, ease-of-use and a card that actually works, avoid these 5 offshore credit card mistakes.
1) Getting a card that's issued in the wrong country. Its all well and good getting an ''offshore credit card'' from an offshore bank. But where is the card actually issued? If it's in a jurisdiction which has information exchange treaties with your home country, this is not a good idea. The best countries for card issue will be those with strong bank secrecy, good banking and little connection to your domicile.
2) Using your card at home. If the whole point of purchasing your offshore credit card is to prevent 3rd parties from discovering who you are, don't use your card at home. You may have the most high-tech anonymous unembossed card available, but that won't stop individual retailers or the cameras at an atm from recording you.
3) Cards with limited usability. Offshore credit cards issued by an offshore bank in a blacklisted jurisdiction may offer little functionality. Maybe it will be difficult for you to fund your card account because of the tax haven's reputation, or even worse your transactions may be automatically flagged as suspicious. Then again, some bank cards
issued out of tax havens with undeveloped banking may not even work internationally.
4) Cards issued in your own name. If privacy is not a great issue, then a card that bears your own name will not represent much problem. But I would guess that for the majority of those reading this article, confidentiality is key. In this case, the best type of card will be that issued in the name of an offshore company, or one that bears no-name at all. The advantage of the company card is that transactions made with it are company transactions, more so if you are not a beneficial owner or director of the offshore company. A no-name or ''unembossed'' card offers the advantage of not revealing anything more than a card number when swiped. Your financial identity remains secret.
5) Cards with low transaction limits. If there's any advice you can take away from this article it is ''read the small print''. So you pay several hundred dollars for a credit card thinking that it will be possible to buy your dream automobile or yacht with your shiny new plastic, but then you find out the purchase limits are tiny or the card loading and ATM fees are phenomenal. If this is the case, you may begin to wonder if it was worthwhile getting an offshore credit card in the first place. Ensure that the credit card has decent purchase limits, that you can use it online, in shops, restaurants and gas stations, and that almost any ATM worldwide will accept it. The best way to achieve this is to get a brand name bank card like an offshore visa or offshore MasterCard.
Perhaps after reading this, you may have decided that getting an offshore credit card isn't right for you. But if you do decide to get your card, you can now enter into a discussion with offshore service providers and other vendors with greater confidence, and knowledge of what seperates a card of true value from a rip-off.
Offshore Pro Group
Thursday 10 June 2010
Using a Prepaid Debit Card to Manage Your Money
Have you been refused a credit card or bank account due to a poor credit history? If so, a prepaid debit card could be a solution.
A prepaid card looks like a credit or debit card (ie it is plastic and therefore can be sued for online and telephone purchases as well as in shops and at ATMs etc that accept the card brand). But the difference is that you can only spend what it on the card. This amount will be pre-loaded on to it and once that amount is gone, you then have to top it up again before it can be used.
Given that the prepaid card companies do not lend you money (because you can only spend funds that you have loaded yourself), no credit checks are usually necessary. However, most card providers will carry out an online electronic identity verification process.
Some prepaid cards may also offer an e-bank account, which could be a convenient place for you to have your wages and other funds paid in. This package potentially gives you greater control over your money.
So how can a prepaid card help you manage your money? Here are some ideas:
there is no temptation to overspend. In fact, overspending is impossible because when your money runs out, the card will simply not be accepted until you pay some more money on to it;
there are no late charges. Because the money that you spend is loaded onto the card upfront, there are no repayments to forget, so there is no risk of incurring late charges;
there is no interest. With credit cards, as long as you have an outstanding balance, interest will be racking up on that amount. With pre pay cards there are charges for certain services (eg SMS balance alerts), but these are usually not cumulative in the same way that interest charges are;
you can use different cards for a different purposes. Some people may have a prepaid card for food, another for bills and another for treats and so on. That way, they can distribute their money according to their budget on pay day. Once the treat and food funds are used up on their respective cards, that's it until the next payday;
you can manage your account online - many prepaid debit card providers allow you to keep track of your account online. Not only can you accept electronic funds transfers, but you can also see what you have spent and what you have left; and
if you elect to receive notification of every transaction on your prepaid debit card - which is available from prep pay card service providers - you can keep track of what you have spent as you go along.
Offshore Pro Group
A prepaid card looks like a credit or debit card (ie it is plastic and therefore can be sued for online and telephone purchases as well as in shops and at ATMs etc that accept the card brand). But the difference is that you can only spend what it on the card. This amount will be pre-loaded on to it and once that amount is gone, you then have to top it up again before it can be used.
Given that the prepaid card companies do not lend you money (because you can only spend funds that you have loaded yourself), no credit checks are usually necessary. However, most card providers will carry out an online electronic identity verification process.
Some prepaid cards may also offer an e-bank account, which could be a convenient place for you to have your wages and other funds paid in. This package potentially gives you greater control over your money.
So how can a prepaid card help you manage your money? Here are some ideas:
there is no temptation to overspend. In fact, overspending is impossible because when your money runs out, the card will simply not be accepted until you pay some more money on to it;
there are no late charges. Because the money that you spend is loaded onto the card upfront, there are no repayments to forget, so there is no risk of incurring late charges;
there is no interest. With credit cards, as long as you have an outstanding balance, interest will be racking up on that amount. With pre pay cards there are charges for certain services (eg SMS balance alerts), but these are usually not cumulative in the same way that interest charges are;
you can use different cards for a different purposes. Some people may have a prepaid card for food, another for bills and another for treats and so on. That way, they can distribute their money according to their budget on pay day. Once the treat and food funds are used up on their respective cards, that's it until the next payday;
you can manage your account online - many prepaid debit card providers allow you to keep track of your account online. Not only can you accept electronic funds transfers, but you can also see what you have spent and what you have left; and
if you elect to receive notification of every transaction on your prepaid debit card - which is available from prep pay card service providers - you can keep track of what you have spent as you go along.
Offshore Pro Group
Fundamentals on Prepaid Debit card
Are you looking to study the fundamentals of the field of prepaid debit card? What you are about to read is set forth plainly, specifically designed for the readers who are attracted to the gist.
Individuals get cards for numerous uses. There are lots of uses for debit card, so practically everyone has some form of plastic money. Some send in a card application since it is a very easy and practical means of shopping for goods whenever they so desire -- and that includes times when they`re not carrying hard cash. Other potential cardholders submit an application for credit credit card online simply because of the card rewards they obtain when they charge goods or services.
Certain other individuals will be interested in getting online securedcredit card because of the much-flaunted and highly alluring perks by a certain card issuer, aside from better customer support and really good plans. There are also folks who obtain online secured credit cards for the reason that any merchandise they purchase will have protection from the card provider. This is generally true if you`ve had some sort of trouble with the product / service you have bought using the card, and the card company will probably pay for the financial loss you incurred by reimbursing the relevant credited value.
Many people acquire chargecards on line since it is the easiest way to pay when they purchase goods or services at an online store. For some people, buying goods and services from the privacy of their home or offices is the easiest mode to buy goods or services, and more so for individuals who haven`t found the time or opportunity for driving down to the shopping complex. Web-based shops characteristically charge their clients by means of charge creditcards on line. Several others possess on line credit card so that they can fall back on it whenever they need money urgently. Almost everyone experiences emergencies when there`s no ready money available, because of which it becomes a real problem for them to manage the crisis. online securedcards can come to their rescue in such circumstances, which makes it another example of the assistance plastic could proffer. Some people apply for online cardscredit only - or largely -- as a means to establish a credit record they will be able to use in prospective borrowings or other credit dealings with banking establishments and other financing houses.
And, in the final category, there are folks who possess securedcreditcards online because of the freedom from burden and responsibility one has when not lugging around stacks of banknotes, since walking around with a wad of cash is quite worrisome at times. In the final analysis, cash in a stolen wallet could be gone without any hope of recovery, but a misplaced plastic card on line just requires you to close the card account, so you won`t have lost anything in any way.
Those things are the standard motivations explaining why cards are popular with almost everyone -- which can be boiled down to the sheer convenience of anytime-anywhere spending. Despite the myriad advantages, no matter what the motivation, applying for and using online debitcredit card isn`t something anyone should do on a whim. online creditcredit cards has the potential to be a really convenient way that you could benefit from as an alternative monetary tool, though it also can be troublesome for you. This is because it is supposed to be used primarily by people who are able to manage its use. When utilized in a reckless or feckless manner, the cardowner is likely to reap the repercussions of a monetary reversal later on.
To assess whether you will be able to handle secured cards on line (and financial affairs) in the wisest fashion, you should factor in the core issues about the card and its basic elements. You`ve got to think whether you will have the means to pay off your card dues as soon as they reach you following purchases made by chargecredit card online. Outstanding dues on creditcard are not an unusual state of affairs, on account of the incapability of the card owner to immediately settle his obligations. This occurs when the card owner does not pay attention to how he/she makes credit purchases, and therefore accrues higher and higher dues at the end of each billing cycle.
How about a scenario where a cardholder can`t square the total amount of card dues and only makes partial payments? There is nothing wrong with this, although it is potentially very risky when this becomes a regular occurrence and card debts mount over the long term, since it means heftier interest rates. Credit charges and late-payment fees tend to really skyrocket when there are no accessible cash resources to cover the card dues. In such a scenario, it is essential that the card owner make use of the most trustworthy form of financial management to find out how he or she might leverage secured credit cards in order to prevent financial losses.
Offshore Pro Group
Individuals get cards for numerous uses. There are lots of uses for debit card, so practically everyone has some form of plastic money. Some send in a card application since it is a very easy and practical means of shopping for goods whenever they so desire -- and that includes times when they`re not carrying hard cash. Other potential cardholders submit an application for credit credit card online simply because of the card rewards they obtain when they charge goods or services.
Certain other individuals will be interested in getting online securedcredit card because of the much-flaunted and highly alluring perks by a certain card issuer, aside from better customer support and really good plans. There are also folks who obtain online secured credit cards for the reason that any merchandise they purchase will have protection from the card provider. This is generally true if you`ve had some sort of trouble with the product / service you have bought using the card, and the card company will probably pay for the financial loss you incurred by reimbursing the relevant credited value.
Many people acquire chargecards on line since it is the easiest way to pay when they purchase goods or services at an online store. For some people, buying goods and services from the privacy of their home or offices is the easiest mode to buy goods or services, and more so for individuals who haven`t found the time or opportunity for driving down to the shopping complex. Web-based shops characteristically charge their clients by means of charge creditcards on line. Several others possess on line credit card so that they can fall back on it whenever they need money urgently. Almost everyone experiences emergencies when there`s no ready money available, because of which it becomes a real problem for them to manage the crisis. online securedcards can come to their rescue in such circumstances, which makes it another example of the assistance plastic could proffer. Some people apply for online cardscredit only - or largely -- as a means to establish a credit record they will be able to use in prospective borrowings or other credit dealings with banking establishments and other financing houses.
And, in the final category, there are folks who possess securedcreditcards online because of the freedom from burden and responsibility one has when not lugging around stacks of banknotes, since walking around with a wad of cash is quite worrisome at times. In the final analysis, cash in a stolen wallet could be gone without any hope of recovery, but a misplaced plastic card on line just requires you to close the card account, so you won`t have lost anything in any way.
Those things are the standard motivations explaining why cards are popular with almost everyone -- which can be boiled down to the sheer convenience of anytime-anywhere spending. Despite the myriad advantages, no matter what the motivation, applying for and using online debitcredit card isn`t something anyone should do on a whim. online creditcredit cards has the potential to be a really convenient way that you could benefit from as an alternative monetary tool, though it also can be troublesome for you. This is because it is supposed to be used primarily by people who are able to manage its use. When utilized in a reckless or feckless manner, the cardowner is likely to reap the repercussions of a monetary reversal later on.
To assess whether you will be able to handle secured cards on line (and financial affairs) in the wisest fashion, you should factor in the core issues about the card and its basic elements. You`ve got to think whether you will have the means to pay off your card dues as soon as they reach you following purchases made by chargecredit card online. Outstanding dues on creditcard are not an unusual state of affairs, on account of the incapability of the card owner to immediately settle his obligations. This occurs when the card owner does not pay attention to how he/she makes credit purchases, and therefore accrues higher and higher dues at the end of each billing cycle.
How about a scenario where a cardholder can`t square the total amount of card dues and only makes partial payments? There is nothing wrong with this, although it is potentially very risky when this becomes a regular occurrence and card debts mount over the long term, since it means heftier interest rates. Credit charges and late-payment fees tend to really skyrocket when there are no accessible cash resources to cover the card dues. In such a scenario, it is essential that the card owner make use of the most trustworthy form of financial management to find out how he or she might leverage secured credit cards in order to prevent financial losses.
Offshore Pro Group
Wednesday 9 June 2010
How to Apply for a Debit Card
What Is a Debit Card?
A debit card is a plastic card that instantly subtracts cash from a banking account upon use, or from a prepaid amount of money deposited to a financial network. A debit card may be attached to a savings account, checking account or money market account. Unlike a charge or credit card, a debit card purchase incurs no interest. However, a debit card may have usage charges such as a fee for cash withdrawals from an ATM (automatic teller machine). Debit card purchases require a PIN (personal identification number) to make a purchase, although some cards allow purchasing on a credit network that requires only a signature. Signature purchases are common for those enrolled in cash-back reward programs with their financial institutions. A PIN debit purchase is required to get cash back.
How to Obtain a Bank Debit Card
Banks will usually dispense a debit card upon the opening of a new checking account. Some banks are able to create a card on site, while others mail cards to a person's home address. The card bearer then calls a phone number, visits a website or uses the card at a machine to activate it. For savings accounts, a bank will commonly ask if the account holder wants to receive a card. Because savings accounts are meant for long-term deposits, debit cards aren't as necessary. However, many people still get cards for these accounts for fast access to cash in case of an emergency. Many institutions charge for savings transactions above a certain quantity, and debit purchases count toward this total. After that line is passed, a fee of $10 or more is tallied for every purchase. Beware!
How to Obtain a Prepaid Debit Card
For those who can't get a bank account, or don't wish to use an ATM card that is attached to one, prepaid cards are a way to get the same convenience. One easy way to get a debit card is through an online financial payment service such as PayPal. PayPal cards use a person's PayPal account balance as the principle. However, an account holder must have a PayPal account in good standing for 60 days to obtain one. Another method is to go to a check-cashing store or Western Union location and purchase a card. These cards usually cost about $10 plus the amount of cash principle. Once purchased, the cards may be refilled at any location offering the particular service. The biggest drawback to this variety of card is the fee structure. It's common for ATM transactions to cost several dollars in fees and for debit purchases to cost anywhere from 50 cents to $1. There may also be a percentage charged monthly on any balance carried. The third option is to have a percentage of your paycheck go into a debit card. The payment service will mail you a card and will usually charge a nominal up-front fee. These cards also come with plenty of usage fees.
The Best Option
The best option for obtaining a debit card is to open a bank account and keep it in good standing. Barring that, PayPal is the second best choice. If one of these isn't a possibility, then see if life is possible without a debit card. Pay bills with money orders, and use cash for everything else. Not only will this save you the fees of prepaid debit cards, it will teach good money management.
Offshore Pro Group
A debit card is a plastic card that instantly subtracts cash from a banking account upon use, or from a prepaid amount of money deposited to a financial network. A debit card may be attached to a savings account, checking account or money market account. Unlike a charge or credit card, a debit card purchase incurs no interest. However, a debit card may have usage charges such as a fee for cash withdrawals from an ATM (automatic teller machine). Debit card purchases require a PIN (personal identification number) to make a purchase, although some cards allow purchasing on a credit network that requires only a signature. Signature purchases are common for those enrolled in cash-back reward programs with their financial institutions. A PIN debit purchase is required to get cash back.
How to Obtain a Bank Debit Card
Banks will usually dispense a debit card upon the opening of a new checking account. Some banks are able to create a card on site, while others mail cards to a person's home address. The card bearer then calls a phone number, visits a website or uses the card at a machine to activate it. For savings accounts, a bank will commonly ask if the account holder wants to receive a card. Because savings accounts are meant for long-term deposits, debit cards aren't as necessary. However, many people still get cards for these accounts for fast access to cash in case of an emergency. Many institutions charge for savings transactions above a certain quantity, and debit purchases count toward this total. After that line is passed, a fee of $10 or more is tallied for every purchase. Beware!
How to Obtain a Prepaid Debit Card
For those who can't get a bank account, or don't wish to use an ATM card that is attached to one, prepaid cards are a way to get the same convenience. One easy way to get a debit card is through an online financial payment service such as PayPal. PayPal cards use a person's PayPal account balance as the principle. However, an account holder must have a PayPal account in good standing for 60 days to obtain one. Another method is to go to a check-cashing store or Western Union location and purchase a card. These cards usually cost about $10 plus the amount of cash principle. Once purchased, the cards may be refilled at any location offering the particular service. The biggest drawback to this variety of card is the fee structure. It's common for ATM transactions to cost several dollars in fees and for debit purchases to cost anywhere from 50 cents to $1. There may also be a percentage charged monthly on any balance carried. The third option is to have a percentage of your paycheck go into a debit card. The payment service will mail you a card and will usually charge a nominal up-front fee. These cards also come with plenty of usage fees.
The Best Option
The best option for obtaining a debit card is to open a bank account and keep it in good standing. Barring that, PayPal is the second best choice. If one of these isn't a possibility, then see if life is possible without a debit card. Pay bills with money orders, and use cash for everything else. Not only will this save you the fees of prepaid debit cards, it will teach good money management.
Offshore Pro Group
Debit cards: get the flexibility of a credit card but avoid the debt
If you’re the kind of person who struggles to reign in your credit card debt each month, a debit card could be for you. Debit cards have all the functionality of credit cards – you can make purchases online or over the phone – but only let you spend money you actually have.
Recent reforms to debit card regulations make the transaction fees for debit card transactions uncertain, but debit cards are still a great option for lots of consumers, as evidenced by their rising popularity.
Debit cards gaining popularity in Australia
Visa International says the amount spent on debit cards worldwide is around $US2.2 trillion, or 55% of the market, with $US1.8 trillion spent on credit cards.
In Australia debit cards’ market share is much lower – around 33% - but spending on debit cards rose 13% last year, whereas growth in Visa credit cards was only 3.1%. This growth in popularity for debit cards is probably due to surcharges on credit card transactions, which are sometimes 3% or more.
Visa debit cards have been available for a number of years, but MasterCard has now entered the market with the launch of the BankWest MasterCard debit card in November 2005.
A number of institutions have recently released debit card products, including ANZ who launched their debit card in March this year, following the lead of St George with a debit card on offer since 2000, and Suncorp since the 1980s.
How do debit cards work?
Most debit cards have all the features of credit cards - you can make payments over the phone or internet, access your money overseas, or make purchases at “credit cards only” locations. The difference is, the money for these payments is drawn directly from your savings or transaction account, rather than as credit from the bank. This means you can monitor your account balance and see exactly how much money you have left to spend.
Debit card features
Some debit card accounts allow you to establish a line of credit, where you can overdraw your account up to a specified limit. This makes the card effectively like a credit card, however the overdraw fees can be very high.
Some debit cards offer a charge back feature similar to credit cards, where if goods are not delivered, or are of a substandard quality, you can officially charge that back against the retailer and get refund.
Similarly, some debit cards provide a guarantee for internet transactions, where you aren’t charged for unauthorised or fraudulent transactions if you report them to the bank in time.
Fee-free EFTPOS transactions?
Some financial institutions promote fee-free EFTPOS purchases when you select “CR” (credit) rather than “SAV” (savings) or “CHQ” (cheque) when making a purchase with your debit card.
Most everyday transaction accounts offer you a number of free electronic transactions per month, then charge you for excess transactions. Using your debit card and pressing “CR” could save you any transaction fees you might be charged over your free transaction limit. (Check your bank’s fee schedule to make sure this applies for you.)
However, this system could change with recent reforms introduced by the Reserve Bank of Australia (RBA).
Reserve Bank of Australia reforms to the debit card system
In April 2006 the RBA released a series of reforms to the Australian electronic funds transfer scheme that will impact on debit card transactions. These include:
Interchange fees cap: Previously if you made a purchase using an EFTPOS card, the institution that issued that card would pay around 20 cents to the merchant’s bank, whereas if you used a Visa debit card, the institution that issued the card would receive around 40 cents. This is despite the fact that both types of transaction are accessing your deposit account. The RBA reforms narrowed this difference in fees from around 60 cents to 20 cents. The RBA argues that narrowing the gap in these fees will create fairer competition between the EFTPOS system and Visa debit system.
Scrapping the “honour all cards” rule: Previously merchants who accepted Visa credit cards were also required by Visa to accept Visa debit cards. The RBA abolished this rule on the grounds that it was uncompetitive. The same rules will apply to MasterCard.
The RBA’s payment reforms have been plagued by controversy and lobbying from interest groups including retailers under the Australian Merchants Payment Forum, the Australian Bankers’ Association and the major card providers.
What now?
The challenges to the RBA’s reforms have included legal battles over some of the proposed changes which makes the future of debit card transaction fees slightly uncertain.
However, fees are unlikely to rise as a result of the changes, and regardless of whether or not they do, debit cards are still a good option for customers seeking the features of a credit card, without the risk of sinking into credit card debt.
Offshore Pro Group
Recent reforms to debit card regulations make the transaction fees for debit card transactions uncertain, but debit cards are still a great option for lots of consumers, as evidenced by their rising popularity.
Debit cards gaining popularity in Australia
Visa International says the amount spent on debit cards worldwide is around $US2.2 trillion, or 55% of the market, with $US1.8 trillion spent on credit cards.
In Australia debit cards’ market share is much lower – around 33% - but spending on debit cards rose 13% last year, whereas growth in Visa credit cards was only 3.1%. This growth in popularity for debit cards is probably due to surcharges on credit card transactions, which are sometimes 3% or more.
Visa debit cards have been available for a number of years, but MasterCard has now entered the market with the launch of the BankWest MasterCard debit card in November 2005.
A number of institutions have recently released debit card products, including ANZ who launched their debit card in March this year, following the lead of St George with a debit card on offer since 2000, and Suncorp since the 1980s.
How do debit cards work?
Most debit cards have all the features of credit cards - you can make payments over the phone or internet, access your money overseas, or make purchases at “credit cards only” locations. The difference is, the money for these payments is drawn directly from your savings or transaction account, rather than as credit from the bank. This means you can monitor your account balance and see exactly how much money you have left to spend.
Debit card features
Some debit card accounts allow you to establish a line of credit, where you can overdraw your account up to a specified limit. This makes the card effectively like a credit card, however the overdraw fees can be very high.
Some debit cards offer a charge back feature similar to credit cards, where if goods are not delivered, or are of a substandard quality, you can officially charge that back against the retailer and get refund.
Similarly, some debit cards provide a guarantee for internet transactions, where you aren’t charged for unauthorised or fraudulent transactions if you report them to the bank in time.
Fee-free EFTPOS transactions?
Some financial institutions promote fee-free EFTPOS purchases when you select “CR” (credit) rather than “SAV” (savings) or “CHQ” (cheque) when making a purchase with your debit card.
Most everyday transaction accounts offer you a number of free electronic transactions per month, then charge you for excess transactions. Using your debit card and pressing “CR” could save you any transaction fees you might be charged over your free transaction limit. (Check your bank’s fee schedule to make sure this applies for you.)
However, this system could change with recent reforms introduced by the Reserve Bank of Australia (RBA).
Reserve Bank of Australia reforms to the debit card system
In April 2006 the RBA released a series of reforms to the Australian electronic funds transfer scheme that will impact on debit card transactions. These include:
Interchange fees cap: Previously if you made a purchase using an EFTPOS card, the institution that issued that card would pay around 20 cents to the merchant’s bank, whereas if you used a Visa debit card, the institution that issued the card would receive around 40 cents. This is despite the fact that both types of transaction are accessing your deposit account. The RBA reforms narrowed this difference in fees from around 60 cents to 20 cents. The RBA argues that narrowing the gap in these fees will create fairer competition between the EFTPOS system and Visa debit system.
Scrapping the “honour all cards” rule: Previously merchants who accepted Visa credit cards were also required by Visa to accept Visa debit cards. The RBA abolished this rule on the grounds that it was uncompetitive. The same rules will apply to MasterCard.
The RBA’s payment reforms have been plagued by controversy and lobbying from interest groups including retailers under the Australian Merchants Payment Forum, the Australian Bankers’ Association and the major card providers.
What now?
The challenges to the RBA’s reforms have included legal battles over some of the proposed changes which makes the future of debit card transaction fees slightly uncertain.
However, fees are unlikely to rise as a result of the changes, and regardless of whether or not they do, debit cards are still a good option for customers seeking the features of a credit card, without the risk of sinking into credit card debt.
Offshore Pro Group
Tuesday 8 June 2010
The Benefits of a MasterCard Debit Card
The prepaid MasterCard debit card, along with one or two others, is now virtually a household name. It offers you the flexibility of having a piece of plastic to use for phone and online purchases as well as in-store, but without the risk of you running up debt.
A conventional credit card makes an amount of credit available to you. You spend then eventually pay it back - sometimes over a period of many months or even years - with interest added on top. Although this may suit many people, it may worry you that you could slip further and further into debt simply because the credit limit is there waiting to be used.
This doesn't have to be the story though because with a prepaid card, you can avoid the risk of overspending.
Why bother with a card anyway?
It may be that your solution to the risks of spending too much on credit is simply not to bother with a card at all. The trouble is, that approach can also bring with it some problems because today it's increasingly necessary to offer plastic for payment. Some automated sales facilities and much buying over the internet actually demands that you have a card available - cash or cheques may not be of any use in such situations.
The plastic card has another advantage and that's security. Your card is typically useless without its PIN and once you know it's been lost or stolen, you can cancel it in a short telephone call.
So, the question is, can one have the security and convenience of a plastic card without running the risks of running up large debts on credit?
Prepaid credit cards
The solution may be the prepaid card. In operation, nothing could be easier. You just load money onto the card through a bank transfer, salary credit or top-up at a PayPoint outlet. You then can use the card normally until such time as the amount you've loaded is used up. You can also use it for cash withdrawals, up to a pre-agreed daily limit.
A prepaid MasterCard may prove an ideal aid in helping you manage your monthly finances.
Offshore Pro Group
A conventional credit card makes an amount of credit available to you. You spend then eventually pay it back - sometimes over a period of many months or even years - with interest added on top. Although this may suit many people, it may worry you that you could slip further and further into debt simply because the credit limit is there waiting to be used.
This doesn't have to be the story though because with a prepaid card, you can avoid the risk of overspending.
Why bother with a card anyway?
It may be that your solution to the risks of spending too much on credit is simply not to bother with a card at all. The trouble is, that approach can also bring with it some problems because today it's increasingly necessary to offer plastic for payment. Some automated sales facilities and much buying over the internet actually demands that you have a card available - cash or cheques may not be of any use in such situations.
The plastic card has another advantage and that's security. Your card is typically useless without its PIN and once you know it's been lost or stolen, you can cancel it in a short telephone call.
So, the question is, can one have the security and convenience of a plastic card without running the risks of running up large debts on credit?
Prepaid credit cards
The solution may be the prepaid card. In operation, nothing could be easier. You just load money onto the card through a bank transfer, salary credit or top-up at a PayPoint outlet. You then can use the card normally until such time as the amount you've loaded is used up. You can also use it for cash withdrawals, up to a pre-agreed daily limit.
A prepaid MasterCard may prove an ideal aid in helping you manage your monthly finances.
Offshore Pro Group
Mastercard Prepaid Debit Card
The Debit MasterCard offers autonomous transaction power to customers. The company sells MasterCard debit cards through several partnered banks around the world. However, MasterCard is responsible for providing debit card services to all its customers, irrespective of their personal banking institutions.
With the vision to imbibe technology in financial transactions, the Debit MasterCard aims to foster relationships between financial institutions, retailers and consumers. Through an understanding of international commerce, the company fuels economic links globally.
MasterCard is headquartered in New York, USA. However, its international business operations are regulated through regional offices in almost all developed nations.
MasterCard has three products under the debit card category: the Standard MasterCard, Gold MasterCard and Platinum MasterCard.
Standard Debit MasterCard
Standard MasterCard allows you to pay for utility bills and taxes without the need for cash. It is the standard version of the Debit MasterCard but offers unique features such as:
Worldwide acceptance: Debit MasterCard is accepted at millions of locations around the globe. With more than one million MasterCard-powered ATMs worldwide, customers can enjoy easy and convenient financial transactions anywhere.
Zero liability: MasterCard allows the customer to choose the services they want to pay for through the debit card. Thus, it reduces the possibility of unauthorized payment through the debit card. A Debit MasterCard holder can immediately report an unauthorized transaction to the customer care centre. However, this facility is available to only those customers with good account standing.
MasterCard Global Service: With global network coverage, MasterCard offers 24x7 customer services in multiple languages. Emergency services, including lost or stolen card reporting, card replacement, cash advance and ATM information, are available through the customer care services.
Exclusive Debit MasterCard
The Exclusive Debit MasterCard includes the Gold MasterCard and Platinum MasterCard. Apart from the standard debit card services, these cards offer value added advantages to customers. Special benefits offered by the Gold and Platinum MasterCard debit cards include insurance, such as:
Automobile cover: MasterRental insurance offers extended warranty cover on genuine auto mobile parts and road assistance service.
Travel cover: This includes insurance benefits against baggage delay, hotel burglary and lost baggage. With the Gold debit MasterCard, you are also eligible for travel assistance services.
Shoppers cover: This includes price protection, extended warranty and purchase assurance coverage.
Debit MasterCard uses security code technology to protect your banking account from unauthorized access. Also, Debit MasterCard comes with extensive security features to restrict unauthorized use of your card when transacting with online retailers. Proactive security features make the MasterCard debit cards one of the most secured online transaction instruments.
Offshore Pro Group
With the vision to imbibe technology in financial transactions, the Debit MasterCard aims to foster relationships between financial institutions, retailers and consumers. Through an understanding of international commerce, the company fuels economic links globally.
MasterCard is headquartered in New York, USA. However, its international business operations are regulated through regional offices in almost all developed nations.
MasterCard has three products under the debit card category: the Standard MasterCard, Gold MasterCard and Platinum MasterCard.
Standard Debit MasterCard
Standard MasterCard allows you to pay for utility bills and taxes without the need for cash. It is the standard version of the Debit MasterCard but offers unique features such as:
Worldwide acceptance: Debit MasterCard is accepted at millions of locations around the globe. With more than one million MasterCard-powered ATMs worldwide, customers can enjoy easy and convenient financial transactions anywhere.
Zero liability: MasterCard allows the customer to choose the services they want to pay for through the debit card. Thus, it reduces the possibility of unauthorized payment through the debit card. A Debit MasterCard holder can immediately report an unauthorized transaction to the customer care centre. However, this facility is available to only those customers with good account standing.
MasterCard Global Service: With global network coverage, MasterCard offers 24x7 customer services in multiple languages. Emergency services, including lost or stolen card reporting, card replacement, cash advance and ATM information, are available through the customer care services.
Exclusive Debit MasterCard
The Exclusive Debit MasterCard includes the Gold MasterCard and Platinum MasterCard. Apart from the standard debit card services, these cards offer value added advantages to customers. Special benefits offered by the Gold and Platinum MasterCard debit cards include insurance, such as:
Automobile cover: MasterRental insurance offers extended warranty cover on genuine auto mobile parts and road assistance service.
Travel cover: This includes insurance benefits against baggage delay, hotel burglary and lost baggage. With the Gold debit MasterCard, you are also eligible for travel assistance services.
Shoppers cover: This includes price protection, extended warranty and purchase assurance coverage.
Debit MasterCard uses security code technology to protect your banking account from unauthorized access. Also, Debit MasterCard comes with extensive security features to restrict unauthorized use of your card when transacting with online retailers. Proactive security features make the MasterCard debit cards one of the most secured online transaction instruments.
Offshore Pro Group
Monday 7 June 2010
Co-branded credit cards: the pros, cons and management of easy debt
Co-branded cards now account for one-third of MasterCard's U.S. card base and 20% of Visa's. As the inebriant of the power of plastic wears off, sophisticated consumers need to carefully review the costs and benefits associated with these cards. Understand that credit cards serve two basic purposes: one, a means of payment, and two, a source of credit.
About one-third of credit card users use them as a method of payment and pay the balance in full each month. Those consumers able to wipe the slate clean every month are generally in the higher income brackets. With credit card interest rates going as high as 20%, the benefit to the holder is an immediate savings on interest rates.
The largest percentage of credit cardholders, however, are installment users who consider credit cards an alternative method of financing and carry a balance from month to month. Financial advisers across the board point out that these consumers are perched on the edge of a gaping pitfall.
The interest rate on the credit card frequently wipes out the perks. By the time you have made enough purchases to qualify for free flying tickets or product discounts, you probably could have paid the price straight out for what you've paid in interest charges.
On the bright side, when you add up the annual fee and typical interest rate for each card and then subtract the value of the rebate, the air fine and auto cards produce an overall better bargain than conventional cards.
For cynical consumers who acknowledge that the retailers and credit card companies are really out to get them, there is a strategy for playing one company against the other. Use the incentive card for purchases and rack up the credits you need for discounts on your heart's desire.
Supported by Visa and MasterCard, the list of co-branded cards is growing.
Offshore Pro Group
About one-third of credit card users use them as a method of payment and pay the balance in full each month. Those consumers able to wipe the slate clean every month are generally in the higher income brackets. With credit card interest rates going as high as 20%, the benefit to the holder is an immediate savings on interest rates.
The largest percentage of credit cardholders, however, are installment users who consider credit cards an alternative method of financing and carry a balance from month to month. Financial advisers across the board point out that these consumers are perched on the edge of a gaping pitfall.
The interest rate on the credit card frequently wipes out the perks. By the time you have made enough purchases to qualify for free flying tickets or product discounts, you probably could have paid the price straight out for what you've paid in interest charges.
On the bright side, when you add up the annual fee and typical interest rate for each card and then subtract the value of the rebate, the air fine and auto cards produce an overall better bargain than conventional cards.
For cynical consumers who acknowledge that the retailers and credit card companies are really out to get them, there is a strategy for playing one company against the other. Use the incentive card for purchases and rack up the credits you need for discounts on your heart's desire.
Supported by Visa and MasterCard, the list of co-branded cards is growing.
Offshore Pro Group
Link Up With Co-branded Debit Card Program
There are many options available for customers these days in terms of plastic money. Most of the people always search for products that will make their lives hassle free. Co-branded card programs are designed in such a way that they fortify customer relationship and brand awareness. In fact, co-branded debit card programs help to reduce the recovery cost and attract new customers for a business.
In fact, co-branded debit card programs help in widening your customer base, building a bond and lowering the costs. A new cooperation is formed between customer and brand by these programs. They help in reaching the targeted customer base in an easy way.
The Co-Branding Power:
The Supremacy of Co-branding.
You also get promotions, cross-selling methods and other incentives to make your business bloom. Co-branded debit card programs are useful for a company, as this can give a fillip to any business.
With co-branded card programs, you are able to raise the customer retention level and bonding through incentives, cross-selling methods and promotions to boost the profitability of your business.
For many organizations, such co-branding card programs are an undisputed way to take their businesses to a higher level. You are eligible for a co-branded debit card program, if your company
For some organizations, Co-branding debit cards offer a way to take the business to a whole new level. Co-branded cards will be of great help if
If you fulfill all these factors, then co-branded debit card programs are a must for you. However, before you acquire any such program, it is good to be well versed with all the advantages and adversities that your firm or your customers can face.
If you intend to achieve all these targets, then a co-branded credit card program is the right option for you. However, you need to be careful while opting for a co-branded card program and you must be aware of all the advantages and the risks associated with the program that you intend to finalize for your business.
For more information on co-branded card programs, log on to www.credocard.com. You can opt for a Offshore Pro Group MasterCard debit card program, as they are the leaders in the co-branded card field. Offshore Pro Group currently backs more than 16,000 card initiatives in around 85 nations. These debit card programs surely help businesses to attain a much higher stature and make a mark in the business arena.
Sunday 6 June 2010
Co-branded Debit Card: A Smart Financial Tool
Small and medium sized business organizations can gain by using branded and co-branded card programs. These programs can be used to build strong relationships with existing and new customers. In terms of payment options, co-branded cards are a better choice than store gift and cash vouchers.
In a very short period, co-branded cards and co-branded debit card programs have gathered large popularity among different business fraternity. A company can improve its brand image by distributing these cards to its customers.
Several SME’s (Small and Medium Enterprises) have realized the potential benefits of generic debit card programs and adopted them. Most of them have benefited from these co-branded programs.
Many business entities such as financial institutions, insurance and Forex companies based in Malaysia, Singapore, Brazil and Germany have gained from implementing co-branded card programs. One of the main advantages of using co-branded debit card program is that a company can maximize its business in the most cost- effective and profitable manner.
Companies can use co-branded debit cards program that work in association with reputed debit card providers such as MasterCard and Visa to attract new customers. Besides, since these reputed cards are accepted in almost all locations around the world, the company can gain good overseas exposure.
In addition, branded prepaid card programs allow companies to print their name and logo on co-branded debit cards. Due to the companies’ association with reputed brands such as Visa and MasterCard, their brand image improves considerably.
Both, the company and its customers gain from using co-branded cards . Customers can use these cards to make purchases even when they run out of cash. Besides, customers are offered various discounts, bonuses and reward points when they use these cards. The reward points gained can be used to make more purchases.
Offshore Pro Group
Grow Your Business Potential With Co-Branded Card Programs.
Co-branded card programs have gained immense popularity in a quick time. The major benefit of co-branded debit card programs is that, they help you to grow your business in a profitable way. By issuing these cards to the customers, you can improve your brand image. A co-branded MasterCard program is the best option in terms of co-branded debit card programs. The present customer database grows after a company rewards the customers with such debit cards. This allows them to shop freely anywhere they want. Such co-branded card programs provide you the freedom of shopping at your own leisure, as you are not bound by time and place, while shopping with such a co-branded debit card. You can access your funds by visiting ATMs or you can make online payment for the purchases. Co-branded card programs offer a wide range of benefits such as Travel Cards, Incentive programs and Prepaid Insurance to Prepaid Payroll Cards. Co-branded debit card programs also provide advantages such as incentive programs and travel cards, prepaid payroll, and prepaid insurance to corporate houses.1. They give brand recognition to your business without any administrative hassles.1. These programs come with no administrative hassles while promoting and enhancing your brand image.2. Your business receives brand recognition.4. Help you to create brand recognition for your business4. Brand royalty is promoted by offering personalized rewards.5. Help you save money by minimizing the costs required in processing and handling of checks, cash and bank accounts.6. These programs help you learn and understand customer-spending habits, which in turn will help you in devising new services and serving your customers in a better way. In short, introduction of co-branded debit card programs to your customers will benefit your business in a significant manner, which includes brand loyalty, improved profits and reduction in overall existing payment costs. Introduction of a co-branded debit card by associating with a bank will help increase your customer base. It will also bring in brand royalty, improved profits, reduction in costs for payroll and related activities.
Offshore Pro Group
Offshore Pro Group
Friday 4 June 2010
How to Create a Co-Branded Card
Co-branded credit cards have become very popular recently. These cards usually carry the logo of a credit card company like Mastercard or Visa, as well as the logo of a retailer, airline, oil company or other business. The cards also usually offer rewards or other benefits to the cardholders who use them, and usually increase customer loyalty to the issuing organizations. If you're thinking about introducing a co-branded card for your organization, here are the steps you'll need to take.
Co-branded Card Development
- Step 1
Define a value proposition that will be compelling to the cardholder. With many different co-branded cards already available, your card will need to offer the cardholder something unique. It should offer valuable benefits that are not widely available elsewhere, but that will still be economical and affordable for you to provide.
- Step 2
Develop a list of potential issuing partners, e.g. banks or financial institutions that have experience with co-branded cards and are looking for new marketing opportunities. Contact these organizations to determine their level of interest and narrow your list to the most likely three or four prospects.
- Step 3
Develop a marketing plan and budget for your card. The marketing plan should define the size and composition of your target market forecast the number of cardholders you expect to acquire in the first year after the card's introduction. The budget should include the marketing expenses you will commit to develop and introduce the card and and any additional operating expenses you expect to incur as a result of its introduction.
- Step 4
Prepare a request for proposal (RFP) for your co-branded card, aimed at your list of potential card issuers and send it to them. Then meet with them to discuss your RFP. Determine the value that each can add to your program and the resources they are willing to commit to it. Discuss their existing co-branded card programs and credit policies, and determine the level of success they have had. Ask them to furnish you with formal proposal that includes a written description of the human and financial resources they would commit to your program.
- Step 5
Review the proposals submitted by each potential issuing partner and determine which one brings the most to the table. Once you have made that decision, contact them and develop a formal contract that defines the roles that each party will have and the financial obligations that each will incur.Negotiate your differences, finalize, and sign the contract.
- Step 6
Develop a card design and marketing materials. These should include a direct mail package that you will send to your customer base and "take-one" applications for the card that will be distributed in your stores or in other places where your existing and potential customers can easily obtain them. Prepare some print, radio and/or television ads to introduce your new card to consumers. Then, launch your new card by issuing a press release, sending direct mail solicitations and distributing the take-one" applications for the card. Analyze the results after 90 days and determine if they are meeting your expectations, and what, if any, changes to your program may be necessary.
Offshore Pro Group
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