If you run an e-commerce or mail order/telephone order business, you need to process credit cards. You need a merchant account, a secure payment gateway, and a payment processor you can trust.
With a Merchant account you can process credit cards and checks directly from your web site, PC or Terminal. An Internet merchant account is a financial relationship between you and a credit card processor, so funds can be deposited into your bank account. It differs from a regular merchant account in that an internet merchant account is approved to run web initiated transactions over theInternet, while a regular account is not approved for web transactions.
Before setting up a merchant account, your acquiring bank will request a wide range of information. This is used to assess your business and to determine the level of charges you'll have to pay for each transaction.
Merchant account is an agreement that you have with a bank that has agreed to allow you to charge people's credit card, while they honor it and deposit the funds into your account. When you are given a merchant account from a bank, they are relying on you to uphold your promises to your customers by delivering the products and/or services to them in a timely manner.
Because of taxation, people prefer to go offshore, and have those funds sent to an offshore account, where they can have the money tax free.