Benefits Of Accepting International Payments
The main advantages of accepting international payments include:
Ultimately if you start selling beyond your borders you’ll access a wider target market, therefore your sales are likely to increase and you'll be keeping up with your competition.
Help reduce cart abandonment and improve customer experience.
If an international customer makes it through to your checkout page and notices you accept international payments then this will massively improve customer experience and help to reduce cart abandonment. If they notice they are due to be charged extra for foreign transaction fees at the point of transaction then that could put them off and result in them going elsewhere.
Provide clear multi currency options
If you provide multi currency options on your website, such as displaying prices in the local currency that your customer is browsing from, or by providing the option to switch between currencies (this depends on your website’s platform as to how this can be presented to a user) then this will help you will appear much more credible and will help to bring in new international customers.
Considerations of Accepting International Payments
Despite the advantages of accepting international payments, there are a number of things you should consider when contending with the complex currency systems and payment methods.
Speak to your acquirer about your business setup to discuss the best route for setup to avoid fees and hurdles, etc. For example, some countries may have taxes which become a limitation and operating in some countries might mean you need a bank account in that country.
Dynamic Pricing - If products are given static prices, for example if a product is priced at £70 GBP for UK customers, and 80,00€ for EU customers, then this price point could change to become more or less profitable depending on the exchange rate. If this becomes a common issue, it could therefore be worthwhile providing dynamic pricing for your products, whereby prices update regularly (daily or weekly) to be equivalent to the current exchange rate. This ensures your customers are always getting a reasonable price, while profit margins are maintained.
Fraud defence tools that offer services such as Address Verification Services, Card Verification Values (CVV) and EMV 3DS to help you find your way around increasingly sophisticated fraud tactics.
Accepting international payments online can bring huge benefits to your ecommerce store, including a rise in sales and customer trust.