As you think about expanding your business into the international market, there are numerous factors to consider. One of the most significant is whether you should accept multiple currencies from customers paying for products and services. As you weigh this question, it is important to explore why doing so can be an advantage for your business, as well as how to go about providing this added choice to your potential buyers.

The benefits of accepting multiple currencies.

You might be wondering whether it is worth going to all the trouble involved in accepting denominations other than your native currency. After all, customers can simply pay using their credit card, right? In fact, providing shoppers with the ability to purchase using the monetary denomination they are already familiar with has several benefits.

For one thing, offering this courtesy eliminates foreign transaction fees. These extra charges can be a major disincentive that often prevents customers who are on the fence about purchasing from an international retailer from closing the deal.

In addition, working with an online payment provider that allows you to accept international currencies boosts your credibility and trustworthiness with your customers. Whether they are examining their shopping carts or reviewing product receipts, consumers seek clarity and transparency. Bills that show prices in unfamiliar currencies don’t inspire trust or loyalty, and often leave shoppers with a nagging sense that a retailer is suspicious or shady.

When customers have concerns about a company’s reputation, they are more likely to dispute a charge that appears on their bill. For you as the merchant, these so-called chargebacks mean added stress, time, and money to resolve them and can even lead to financial penalties if they occur frequently. Since many chargebacks stem from customer confusion, doing all you can to be clear about the nature of what is being charged by providing local currency conversion can significantly impact your bottom line.

In short, accepting multiple currencies makes for happier customers. These buyers are much more likely to complete a sale and refer their friends and family while being much less prone to dispute charges. In the end, providing this service is a courtesy that benefits everyone involved in the process, including you the merchant.

Tips for incorporating multiple currencies into your international business model.

Now that you’ve seen the numerous boons that accepting multiple currencies can bring, it’s time to learn how to get started. Your most important first step involves learning as much as you can about your customer base. Get answers to questions such as who they are, how they prefer to make payments, and what cultural factors may exist that could affect their preferred method of completing transactions.

Next, be careful in the selection of your payments solution. Only choose an option that allows for multiple currencies and automated pricing that converts product costs into your preferred monetary denominations. This is much easier than doing so manually for each item.

Once you have chosen a payment platform that meets your needs, make sure to tell your customers about it. Prominently post the fact that you accept your buyers’ currencies of choice, and make the announcement in their native language so that this service is crystal clear.

Even though you have elected to accept different currencies for your products and/or services, you still cannot escape exchange rates, which tend to change unpredictably. One way to minimize this uncertainty is to purchase a “forward contract” that locks your foreign exchange rate in for a specified period of time. This can be done by talking with a bank or other financial specialist headquartered in the local area where your customers reside.

Speaking of local connections, you can boost your credibility and knowledge of your customer base by cultivating relationships with resources native to your sales areas. These individuals and companies will provide you with vital information about your customers, their culture, and the laws and regulations you will be operating under.

Finally, you can further expand the choices you provide to buyers by allowing them to pay with Bitcoin and other cryptocurrencies. An added benefit is that no foreign exchange fees are imposed with this payment form. As crypto becomes increasingly accepted by mainstream shoppers, making it available is destined to become the standard for international ecommerce companies of all sizes.

Numerous factors are involved in your decision to take your products into the international marketplace. By doing so, you can bring your brand to a much deeper and richer pool of buyers. For many entrepreneurs, going global can mean a marked increase in profits, as well as numerous intangible rewards.

That being said, leaping international commerce is not for the faint of heart or the unprepared. It is a significant risk that can be minimized with solid research, analytics-based data, and realistic expectations. One of the most important steps you can take to increase your chances of gaining and maintaining a rapport with your potential international customers is to give them the ability to pay in their currency of choice.

When you have a strong relationship with a payment processing company you trust, you can remove much of the guesswork about accepting multiple currencies. Take time to ensure that your current choice is equipped to grow along with your business, and has the expertise to handle cross-border issues and transactions. To that end, be certain that their customer service remains available and responsive. and that their representatives are attuned to the nuances of your global business.

If your current choice seems inadequate, rest assured that there is no shortage of competition. Take time to look at various providers until you find the company that can best meet your and your foreign customers’ needs. It is this ongoing, strong relationship that can spell success for your international retail endeavors.