The widespread global adoption of the internet and convenient digital payment methods are contributing to the unprecedented growth of international eCommerce. Cross-border eCommerce growth is projected to surpass domestic eCommerce, with global online consumers spending more than $1 trillion on international shopping websites in 2022. If you want to increase sales and boost business profits, you should start offering your products and services to international customers.
To serve international customers, your eCommerce business will need to access the global payment system. There are many processors that can offer global payment services to eCommerce businesses. With countless global payment processors out there, how can you choose the best one for your business needs? In this post, T1 Payments will explain what criteria to look for when picking a global processor for your eCommerce business.
Selling to international customers and using the global payment system exposes your eCommerce business to more risk. Along with processing international credit card payments, the industry you operate in and the products you sell can place your business in a high-risk category. A payment company that does not fully understand the complexities of high-risk industries can jeopardize your business’s ability to process credit card payments from customers.
If you want to serve customers outside of the US, European Union, Australia, and Japan, operate in risky industries, or sell high-ticket products, you should partner with a high-risk processor to access the global payment system. High-risk payment processors have the expertise and tools needed to protect your business from increased liabilities. Look for a reputable high-risk processor with years of experience in the industry to acquire global payment services for your business.
If you want your business to use the global payment system, you should partner with and enter into a contract with an international credit card processor. Before you sign and finalize any contract, you should make sure that you have a clear understanding of every term, phrase, and clause in the document. Ambiguous clauses that can have more than one interpretation will lead to misunderstanding and conflict down the road.
Vague provisions in a contract will make it difficult to recognize hidden costs. The low processing fees you were promised turn out to be temporary or some services you thought you were going to get for free end up costing a fortune. Ambiguous contractual terms can create financial and legal trouble for your business in the future. Consult with a legal advisor to review the contract before you sign up for global payment services.
Ecommerce merchants experience higher rates of fraud than traditional brick-and-mortar businesses as they primarily process card-not-present (CNP) transactions. Processing credit cards over the internet is riskier as many fraudsters use stolen credit cards to purchase goods and services online. Friendly fraud ⎼ a form of digital shoplifting that occurs when customers receive the ordered goods but deny the purchase to get their money back ⎼ is also common in CNP transactions and high-risk industries.
Fraudsters or fraud victims often file chargebacks with their banks to get their money back. Excessive chargebacks can devastate a business financially and terminate their merchant account. The risk of online payment fraud is even greater when serving international customers. Non-American IP addresses are seven times more likely to involve online shopping fraud than US-based IP addresses. To reduce the risk of accessing the global payment system, partner with a processing company that uses the most advanced fraud mitigation tools for decreasing chargebacks.
Cybercrime incidents are ever-increasing, with American companies often being the primary target of state-sponsored hackers and cybercriminals. Hackers and cybercriminals are developing ever-more ingenious ways to steal credit card data to commit financial fraud. Online businesses must use secure payment platforms to minimize the risk of a data breach. Ecommerce merchants should work with a processor that employs the latest internet security standards to access the global payment system safely.
To pick a secure global payment service provider for your business, look for a processor that is accredited by the Payment Card Industry Data Security Standards (PCI DSS) Council. The PCI Council was established by the major credit card brands to develop advanced security protocols for protecting cardholder data. Partnering with processors that comply with the latest PCI DSS guidelines will secure your payment gateways and platforms, safeguarding your customers’ credit card data from theft.
If you want to cater to international consumers, you should be able to offer your products and services in the customer’s local currency. If an international customer can’t find the price of a product in their native currency, they are more likely to abandon your site, resulting in a lost sales opportunity. Support for local currency on your eCommerce store eliminates the hassle of working out exchange rates and allows shoppers to know the exact purchase price of a product, which improves the customer experience.
To provide native currency support on your eCommerce site, you should partner with a processor that gives you access to the global payment system. Many global payment service providers have partnerships with dozens of international banks around the world, allowing both merchants and customers to work with their own currencies. Having global currency processing capabilities will localize your business and improve customer satisfaction, helping your eCommerce enterprise grow internationally.
If you’re struggling to grow your business in the domestic market, expanding internationally can help you increase sales. To expand your business beyond borders, you need global payment services to process international credit card transactions from customers.
Do you want to access the global payment system? We can help. T1 Payments has working relationships with numerous international banks, giving merchants the capability to process payments in over 160 different global currencies. Contact us now to sign up for global payment processing and localize the world.