Panama Merchant Accounts 2009 Update

Feb 14, 2009

One of the “hottest” topics in terms of the enquiries we receive here at Do Business in Panama is Panama Merchant Accounts. We can see why. Panama is indeed a logical choice for those interested in tax-free e-commerce, due to its proliferation of high quality offshore banks, its use of the US dollar as the national currency, and its convenient time zone and location.

In reality, however, opening a merchant account in Panama is not for every business. It involves a great deal of work and due diligence. First of all, Panama banks will only open credit card merchant accounts for Panama corporations. Then, your corporation will need some kind of verifiable presence – a brass plate outside a lawyer’s office is really not enough these days. Next, you will need a local business licence – difficult, if not impossible, to obtain for many of the enquiries we receive that are looking to set up Panama merchant facilities for businesses such as pharmaceuticals, cigarette trading, Cuban cigars, or internet gambling.

So, you ask, it is difficult – but is it impossible? First of all, it depends on your trading history. If you are a completely new business, it’s better to forget trying to work with Panama banks. We have had some success placing this kind of business with banks in Europe and the Caribbean. The other option is to use an IPSP (Internet Payment Services Provider) that specializes in high risk business. We can facilitiate such introductions, but they are only available for very serious clients who expect a turnover of at least $50,000 monthly and are prepared to pay substantial up front fees to get things set up.

The conclusion is that YES we can help you set up a Panama merchant account, or we can refer you to other offshore banks in different countries that will consider working with your business. However, it will require substantial preparation and a serious business plan that you should be ready to prepare and e-mail ahead. You should then expect to fly in for personal meetings with our lawyers, who will in turn walk you over to the banks and make sure you don’t say the wrong things!

If you are interested in discussing this matter further, please feel free to get in touch initially with our offices here in Panama City, Republic of Panama. We are located on 50th Street in the heart of the financial district.

If you are rather looking for Panama merchant services for a smaller business, instead you might like to contact our partner company Genericard Corp.