How To Access Your Money Offshore
When it comes to placing money offshore, one of the main concerns is "Will I have access to my funds?"
A very practical and hassle free way is through plastic. However, there are several forms plastic can take and not all are offshore-friendly. While some are discreet and convenient, others almost scream out your whereabouts and your lifestyle. Today and tomorrow we will look into this subject, starting with some definitions.
Traditional Credit Card:
With an old-fashioned credit card, you charge to your heart's content and receive a bill at the end of the month. The credit card company hopes that you will eventually pay off the balance. In other words: "Spend what you don't have, worry about paying later. We trust you".
Debit Card:
A debit card is directly tied to a bank account. Whatever charges the user runs up are debited to that bank account, and monthly statements do not carry a remittance slip. The same account may have a checkbook tied to it as well. This is NOT a credit card, since you are only allowed to spend whatever balance there is on the bank account.
Secured Credit Card:
Here, there are two accounts:
A frozen bank account the funds in 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. But you are still obliged to make a minimum monthly payment of 10 per cent of the outstanding balance within a couple of weeks from receiving your statement.
Paper Trail:
The inevitable trail that most transactions leave tracing back to its originator.
Regarding the name that should be on your card, there are various options, depending on the distributor of the credit card and depending on your own unique needs. Some people may prefer not to be linked to their corporation at all; others, on the contrary, may feel more secure having their name on their credit cards.
Bottom line is, there is not only one way to do this.
Important things to ponder about this matter:
- That you should always be able to use the funds when and where you need them, through your ATM card.
- That by using the card you must not leave a paper trail leading directly back to you.
- That the account linked to your card should be completely separated from the account where you have your investments and additional funds.
- That the card must not be issued to your name, but to that of a corporation.
For offshore purposes, we recommend the use of a "secured offshore credit card" or a "loadable debit card" . Through this method you get offshore confidentiality and you have the benefits of a credit card as well as a debit card.
As above mentioned, you need to make a deposit as a guarantee for the credit card, and you'll have a second account from where your charges and withdrawals are deducted. This account needs to be "fed" through periodical deposits in order to keep it functional.
For further information on ATM cards, please feel free to contact us.
