Offshore Credit Card Security Deposit
One of the things that I glossed over in an earlier post that I wanted to come back to is the idea of putting down a security deposit for your credit card. While most patrons that are not familiar with the offshore world will not be too keen to have a deposit to secure their card there are some good reasons for this:
While most cards in the US and parts of EU have credit associated with the card, an offshore credit card is usually either prepaid, or a debit, and no credit check has been attempted or completed on the client.
This makes it possible for a card to be issued to a client where non-existent or dubious credit has been achieved. Since the cards operate on fees, the security deposit merely ensures that the client does not run up fees through queries to the ATM (for example) in excess of funds on deposit.
Sometimes the security deposit will be something nominal or small like like my company's 60 euro security fee...Other times the security fee can be as much as 150% of the money the depositor wishes to withdraw.
Before buying or signing onto an offshore credit card program, the fees and should be taken into account as it will effect the offshore credit cards overall usefulness to the client.
Are Offshore Credit Cards Legal?
5 years ago