Start selling online in foreign markets using an international payment gateway
Whether money makes the world go round is up for debate, but it definitely goes around the world. Ecommerce shoppers worldwide make nearly 25 percent of their purchases from outside of their home country, and 50 percent of these purchases occur on U.S. websites. How can your business get in on the action?
Large enterprises have typically dominated international trade, but new eCommerce payment technologies and international payment gateways are making the global marketplace more accessible, and helping SMBs drive growth. In 2014, SMBs accounted for 27.4 percent of overall goods export growth in 2014, with the largest growth in Mexico, the United Kingdom, and Belgium. As more consumers from around the world go online to make purchases, global online sales are expected to more than double to $3.5 trillion by 2019.
Companies that do business online are more agile and able to respond to the dynamic opportunities in international markets. And companies that do international business grow faster and fail less often than companies that don’t. For SMB merchants operating in the eCommerce space, the ability to accept international payment methods can be a differentiating factor and provide additional opportunities for growth.
Let’s explore what is involved in processing payments across national borders, and what to look for in an global payment gateway that makes these types of transactions possible.
Multiple currency options
Selling online internationally expands your potential customer base, but also expands your competition. One way to stand out is by allowing customers to pay in their local currency using their preferred payment brand. International payment gateway solutions like Vantiv’s facilitate payments in more than 150 currencies with settlement in USD.
Dynamic currency conversion
Setting prices for international sales can be complicated by fluctuating exchange rates, especially since customers are more likely to buy when exchange rates are in their favor. An experienced payments partner like Vantiv can be invaluable in advising on setting product and service prices as well as handling currency conversion rates.
Authorization and settlement
One of the complications that often arises for U.S. businesses operating internationally is authorization and batch settlement. Instead of managing multiple bank accounts and payment processors in multiple countries, merchants can rely on their domestic processing partner like Vantiv to handle authorization and settlement across all borders. This not only helps simplify operations by guaranteeing higher card approval rates, it also helps merchants avoid foreign transaction fees.
Fraud and risk management
EMV chip card acceptance has proven effective in reducing card present fraud, but has also been a primary driver of payment card fraud online. Any businesses operating in the eCommerce space must take precautions, both in the form of technology solutions and best practices, to protect themselves. Merchants should look to a processing partner like Vantiv for the necessary technology and services to thwart international online fraud and accept secure payments.
To learn more about how an international payment gateway can benefit your business, and how Vantiv can help your business enter the global marketplace, contact us.