The Convenience Of An Offshore Credit Card

Your everyday run-of-the-mill offshore investor (there probably actually is no such thing) has never had the convenience of being able to use an offshore credit card until recently. If individuals and businesses with offshore bank accounts wanted to access their funds they had to do it by either making a withdrawal from their bank or by having the money wired to a bank in the United States.

Now offshore institutions offer their customers Visa and/or MasterCard credit cards. These credit cards are the very same as are offered by financial institutions in the United States with a few important exceptions. They have features and benefits that include purchase protection, insurance on car rentals, replacement of lost or stolen cards, etc.

There are however, some very significant differences between an offshore credit card and a credit card from a traditional U.S. credit card issuer. The vast majority of offshore credit card offers are secured credit cards. That means that the cardholders must deposit money which will go into a separate account from which they can draw upon.

Because of this many offshore institutions will promote their offshore credit cards with the tagline that the offshore credit card has all the benefits of a Visa or MasterCard. Note that they are making a subtle distinction between traditional credit cards and the secured offshore credit cards by comparing the two. The inference here is that while there are similarities, they are not the same.

When we speak of offshore banks we’re talking about institutions that are located on islands that usually offer very favorable tax shelters. Oftentimes individuals and organizations will launder money through these banks. They are very difficult for the governments of established nations such as the United States to regulate. However, since September 11, 2001 there has been a concerted effort to crack down on these financial havens.

To open up an off shore bank account and apply for an offshore credit card usually will require, in addition to the completed application, an ID such as a passport or drivers license, proof of residence no matter where that may be, And a letter of reference usually from an attorney.

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