The international e-commerce market needs to employ a global payment processing solution to effectively trade across borders. What is global payment processing, how does it work, and which solution is best for you? We talked to the experts and they’ve explained all the key points that we need to understand about global payment processing.
The advancement of eCommerce payment processing systems has considerably benefited the growth of international online trade. Businesses must be able to process foreign currencies in order to conduct transnational online sales. You can make worldwide payments online and turn your company into an international organization by utilizing cutting-edge technologies.
These systems include a variety of functions, including fraud and phishing prevention. You can keep your clients' information safe and secure. Apart from allowing you to accept foreign currencies, such systems also enable you to handle payments received via a variety of methods, including credit cards and internet banking.
Neil Shaw, Founder & CEO at Lottery Sambad
Global payments processing can assist you in increasing international sales, provided it is done correctly. To successfully integrate global payment, you must understand the stages involved.
To begin, the shopper places an order on the merchant's website. The gateway receives the merchant's transaction request and routes it to an acquiring bank. The acquiring bank conducts fraud checks on the transaction and, if the transaction is approved, routes it to the issuing bank.
The issuing bank accepts or denies the transaction and communicates its decision to the payment gateway via the acquiring bank. The payment gateway provides the shopper with an answer.
Hutch Ashoo, Founder & CEO Pillar Wealth Management, LLC.
Make sure you check the fee when choosing a global payment processor. There are often many fees attached to global payment processor services. It might be a small percentage, but if you constantly have transactions, they can add up and impact your finances. Make sure to find a global payment processor that has everything disclosed upfront. If not sure, always reach out to their customer support for further clarification. It's better to be safe than sorry.
Abby Hao, Co-founder, and CMO at wiringo.com
The first thing to consider is what type of currency you want your customers to pay in.
There are two types: local and cross-border currencies. Local currencies will be processed by a company's regional bank, while cross-border currencies are handled through an intermediary bank or foreign exchange service provider (FXSP). The FXSP takes care of exchanging the money from one currency to another either at the time of purchase or after settlement has taken place with the merchant's issuing bank.
Another consideration for global payment processing is how you're going to process payments internationally. If you're selling your products and services to consumers, then the best option is through a debit or credit card.
A good example of this is American Express's Bluebird prepaid card. This card allows customers worldwide to make online purchases with no hidden fees or requirements such as minimum balances.
For businesses processing larger volumes of transactions, a corporate debit or credit card is a better choice. Corporate cards will provide you with the option to make business purchases anywhere in the world and get rebates on your spending. You can also get cash from ATMs worldwide at no additional fee to what it normally costs you.
The final consideration for global payment processing is the law. It's important to be aware of local laws and international payment service providers (IPSPs) before doing business overseas. Some countries may require that you obtain a permit or register your company before conducting transactions with consumers, while other countries may not permit online purchases at all.
James Fuller, founder, and owner of HonestWhiskers.com; a business that uses Global Payment Processing
Let's take a look at the three different methods you may accept online payments.
The most well-known method of accepting online payments is to use a payment gateway on your website. Your consumers add items to their online shopping carts, then proceed to your payments provider's checkout page to input their information. That is all there is to it. If you choose the proper payment provider, they'll assist you or your website developer every step of the way, so you don't have to worry if technology isn't your thing; you can just sit back and watch the money come in.
Although not all businesses require their own internet store, they may choose to include online payments in their toolbox. A venue that accepts reservations, for example, may meet with clients to discuss their needs and then issue an invoice at a later time, which is where pay by link comes in. It entails producing an invoice and sending it to your customer through email, along with a link to pay online.
Any competent pay by link provider (spoiler: us) will still accept all major card issuers, allowing you to offer an online payment option that fits your business well while keeping your clients satisfied.
Because you are the one who inputs the customer's card data online, this one turns internet payments on their head. All you have to do with a virtual terminal is log in to a secure website, called the virtual terminal, while you're on the phone with your customer and enter the information they supply. If you're a plumber and a customer wants to pay an invoice, you can say goodbye to the agonizing wait for payment; the consumer can just call you with their information, and Bob's your uncle, you'll get paid.
Bram Jansen; Chief Editor of vpnAlert
Look for enterprise-grade financial controls when selecting a worldwide mass payments platform. Also, see if the platform allows you to plan thousands of payments at once and if it accepts numerous payment methods. Different vendors will have different payment requirements. It's easier to do business with them if you pay them via their preferred method. It also streamlines the entire payment procedure.
Adam Wood, Co-Founder of RevenueGeeks
Potential business owners who have never used global payment processing might not know how the systems work and think they can receive money directly from clients to their accounts. In order for a business to accept payments through e-wallets, Debit Cards, and Credit cards, they must possess a merchant account.
This is a “mediator” account that holds the funds before they are sent to the business. They are more of holding pens that keep the money as the legitimacy of a payment is underway. During the holding period, the merchant pings (contacts) the issuer of the wallet or card and informs them of the attempted transaction.
The issuer checks with the customer’s account to confirm personal details and the availability of funds. Upon verification, the bank responds to the issuer, who gives the merchant the go-ahead to approve the transaction and release the funds into the business owner’s account.
Thomas Brown, CEO and Marketing Manager of Wigsmaster