Going global with a merchant account

Going global with a merchant account

All over the U.S. news there is talk about consumer spending either slowing down or not picking up quickly enough to boost quarterly sales for many industries. This is alarming news for any merchant. However, U.S. consumer habits aren't as unsettling to merchants who market globally a great deal.

If you have not taken your business international, then now is the time to go global. Don't worry about how you will get paid for an international sale; your merchant account will handle it for you -- assuming you pick the right one.

Account must offer international processing
You will need to find out if your current merchant account offers foreign currency payment processing. If international payment processing is not offered with your current merchant account, you may need to upgrade to a merchant account that does offer it or open a new merchant account with a payment processor that handles international payments.

Another important issue to consider is the foreign reputation of your payment processor or the processor you plan to open a merchant account with. Just as you would make sure your merchant account is with a processor who is in good standing in the U.S., the same due diligence should be followed when going global. If your bank has a bad reputation in the U.K. and customers find out, they may not trust you as a merchant.

Decide which payment forms you will offer internationally
Accepting credit card-only purchases for your site is probably the safest bet for taking your business global. You don't have to worry about bounced checks and payment is prompt. On the flip side, there may be potential customers who only use their checking account for purchasing. One way to decide which payment method to use globally is to provide a different payment method per international region. For instance, a report from China Daily on September 16, 2009, shows that credit card debt is becoming a huge problem in China. Based on this information, you may decide to offer account clearing house (ACH) debits via a customer's checking account for this region.

There is additional research beside obtaining a merchant account that will help your business go global. Market research, customer behavior and communication aspects have to be taken into consideration as well. However, if you cannot process an international transaction, then your efforts to go global will be thwarted. Research your current merchant account and others such as PayPal to find out if they can provide the type of international payment processing that will help you take your business global.

Published: November 3,2023