Multi-currency payment processing enables companies to accept payments in a variety of currencies. A multi-currency merchant account facilitates payments in major currencies. For US firms selling internationally, a multi-currency merchant account may be just the solution you need!
Over 50% of US online shoppers claim to buy on a semi-regular basis from overseas websites. Worldwide this number increases to 67% of online shoppers buying in from abroad. This represents a great opportunity to US businesses. But it also underlines the importance of offering payment in different currencies to attract international customers for your business.
Expanding your business to sell internationally is one of the fastest routes to revenue growth. To do so, being able to offer your new customers the ability to buy in their own currency is vital. Not only does this build trust, but it saves your customers from paying currency exchange fees.
In this article we look at the benefits of multi-currency processing for your business.
Why Multi-Currency Accounts Make Sense
There are three main ways that multi-currency accounts can help your business.
- Marketing – to generate more sales
- Administration and process – to limit customer complaints and provide seamless transactions
- Business reasons – reducing the costs of payment transactions
Put simply, if a potential customer sees products or services priced in their own currency, they are more likely to buy them. It means customers do not need to try to calculate exchange rates, or be put off entirely and looking elsewhere.
Payment in local currency also minimizes any chance of the customer being charged more for the transaction by their credit card provider. In turn, this reduces the risk of chargebacks being initiated, and increases the likelihood of your firm keeping a happy customer.
How do Multi-Currency Merchant Accounts Work?
When a customer makes a payment, your multi-currency account automatically converts it into USD before processing the funds. By working on a pre-determined daily exchange rate, the account provides predictability for that day’s transactions. This offers the advantage of predictability, and you will have a clear understanding of how much each sale is worth.
Price setting for overseas customers can be done in one of two ways with a multi-currency merchant account. The ‘Controlled’ approach means the customer sees a consistent price in their own currency for each product. Businesses then receive payment in USD in accordance with that day’s exchange rate from the currency in question.
The ‘Variable’ option works the other way around. This involves the price being set in USD. Prices then change for customers in local currency and are based on that day’s exchange rate from USD. While the Controlled approach is more customer-centric, businesses can choose which option works for them.
Which Currencies Are Included?
The major currencies of the world are included as standard in multi-currency merchant accounts. This includes USD, GBP, CDN, AUD, EUR and JPY. Other currencies are also available on request if your business has a particularly strong customer base in another country.
Simplifying Your Processes
Making use of a multi-currency merchant account reduces your firm’s need to open offshore bank accounts. Not only does this reduce the administration involved with doing so, but it also saves you the cost of regular currency exchanges.
Although customers can in theory make international payments with credit cards and debit cards from anywhere in the world, your business should consider this. Not offering prices and payment options in local currency risks your business not looking serious to international customers. To appeal outside of the US, firms should be looking at local currency and even different languages. Doing so builds trust, demonstrates commitment, and reduces the reality or perception of forex charges being charged to the customer for the transaction.
Find Out More
Find out more and apply online for our multi-currency merchant accounts.
Feel free to email info@PaynetSecure.net. Or call 888-5-PAYNET today.