Why you should leverage a multi-currency payment gateway for your ecommerce business.

Operating an ecommerce business enables you to sell to a diverse cross-section of consumers with less overhead. Even so, you can continue to build your brand while offering that sales and service excellence that has come to set you apart from the rest.

With your ecommerce technology and expertise now firmly in place, it may be the perfect time to expand your offerings to encompass foreign markets through the use of an international payment gateway.

The payment gateway explained.

Anyone who runs an ecommerce business is likely familiar with the concept of a payment gateway. To review, it is the technology that captures the customer’s payment data and securely transfers it to the acquirer for processing.

Its other function is to relay the response (approval or declination of payment) back to the merchant and customer.

Although this entire procedure is accomplished in a matter of seconds, a lot goes on during that short time. First, the customer’s credit card details are validated. Then the gateway ensures that there are sufficient funds in the buyer’s account for the purchase to be made. The process goes like this:

• The customer chooses their products and moves to the payment page on your ecommerce site. This may be hosted (customer is redirected to a different page to make the payment) or direct (on the same page for faster processing, easier checkout, and a more comfortable buying experience).
• The customer enters their payment details, which are then securely passed to the gateway.
• The gateway encrypts the information and checks for security lapses or fraud before sending the information to the acquiring bank.
• The acquiring bank sends the details to the credit card company in question (Visa, Mastercard, etc).
• The card company rechecks for fraud and forwards the data to the issuing bank.
• The issuing bank does its own fraud screening and issues an acceptance or declination, which is conveyed back to the card company and acquirer.
• The acquirer notifies the gateway, which in turn forwards the information about acceptance or declination of payment to the customer. If approved, the acquirer collects what is owed from the customer’s issuing bank and deposits your share into your merchant account.

The thoroughness and tight security involved in every step of this transaction make having a payment gateway a necessity even for domestic ecommerce sellers.

How a payment gateway can expand with your ecommerce business.

When you think about sharing your products and services with international customers, one of your first considerations should be how you are going to accept payments in currencies other than your own.

Although you might be thinking that it would be sufficient to let buyers pay using their credit cards, this does not provide your customers with the trust-inducing, holistic shopping experience they demand. In short, can you just accept customer credit cards without selling in their native currencies?

Yes, but doing so would be a big mistake that will cost you profits and customers.

Instead, your best bet is to find an international payment gateway that allows you to accept multiple currencies. Particularly if you do business with a vendor that has already established relationships with banks in your countries or regions of choice, this will even help you to reduce the costs that you would otherwise probably pass down to your customers.

What can an international gateway do for your expanding business?

• Provide multiple currency options that allow your customers to pay in the monetary denomination they are already familiar with.
• Dynamic currency conversion that uses the customer’s URL to determine their location and preferred currency and then provides an instantaneous running total of their shopping cart purchase amounts in their monetary denomination of choice.
• Simplified authorizations and settlement of international fees. As you might imagine, selling abroad comes with a price tag. You will continue to pay per-transaction costs but will also be expected to shell out money to the credit card companies and international banks. Although some of these fees are non-negotiable, a good international payment gateway will streamline what you need to pay and may even help to lower your expenses.
• Facilitate secure payments even across international borders. The potential for data breaches exists whether you are accepting payments only for domestic customers or if you are selling abroad. However, the risk is higher when your shoppers live in different countries from your own. A top-of-the-line international payment gateway company will be an expert in complying with the complex sets of compliance regulations, tax laws, and other statutes that are in effect in each nation you serve. They should also follow international data privacy guidelines to provide maximum protection for your valuable digital assets.

Just as is the case for your domestic payment gateway, your international one acts as a middleman between your website and your customer, facilitating a safe and secure transaction from start to finish.

Taking time to find the best vendor that fits your business, the industry in which you operate, and your future goals is one of the most prescient steps you can take as you intelligently enhance your offerings to serve customers from abroad.

A few cautionary words.

With global ecommerce gaining more popularity with every passing day, the competition among gateway providers is fierce. This can be to your advantage since it means that you have a multitude of options.

Before you sign on any dotted lines, consider asking the questions below. 

• What countries and customers do I want to serve?
• Does this gateway accommodate those customers and their needs and preferences?
• What types of payments are preferred in my market? Will this gateway be compatible with them?
• Will this gateway integrate with my current ecommerce platform?
• Should my business grow, does this gateway offer the flexibility to scale and evolve?
• Does this gateway adhere to all relevant international and national laws, compliance guidelines, and security standards?

If the answer to any of these inquiries was “no,” the good news is that there are other viable contenders worthy of your consideration.

Selling products to customers in their currencies of choice is more than a courtesy. Doing so provides transparency and demonstrates to shoppers not only your confidence in your products but your willingness to go the extra mile for their business.

When you choose the right international payment gateway, you can accept payments in international currencies and delight your global customers as a result.