Trying to find an international payment gateway – and feel confident about the choice you make – can be tough. One of the most important parts of having an online business is payment. In order for your customers to have a positive experience and for your business to continue to grow, you need a site equipped with all the essential tools. This includes a payment gateway.
What are International Payment Gateways
Essentially, a payment gateway connects merchants and customers so that a transaction can take place. It allows information to pass between a customer’s bank and the merchant’s bank so that the payment can be authorized. When a buyer or their bank is located in another country, there has to be an international payment gateway involved to handle this process.
While processing domestic transactions is typically an easy, seamless process, international transactions are much more complicated. Domestic sales involve one language, one currency and (in most cases) one jurisdiction in which you must declare sales tax. On the global market, however, you will need to accept payments from many countries, with many different languages and currencies. International payment gateways are designed to do just that.
International Payment Needs and Opportunities to Consider
Understandably, international selling creates unique challenges for merchants, which is why choosing the right payment solution is so important. Here are just a few of the payment needs you’ll need to keep in mind.
Consider local payment methods. Consumers get attached to certain payment methods. To ensure you create a customer experience that keeps people coming back, you’ll need to incorporate them. Some countries avoid debt as much as possible, while others steer clear of subscriptions. It’s important to find out the preferred payment methods of customers to improve your customer experience globally.
Minimize payment failures. International payments are more likely to fail when compared to domestic transactions. The main reason for this is communication problems between a merchant’s acquiring bank and the customer’s issuing bank. An international payment gateway will strengthen the relationship between the two and serve as a middleman.
Ensure global sales tax compliance. An international payment gateway provider will also help you with the task of global sales tax compliance. As an international seller you must file and pay tax where your customers are physically located – not you. A huge help, an international gateway will integrate sales tax calculation functionality for use at checkout.
As you search and compare providers, just make sure you’re considering a company that specializes in working with your business type and industry. They should also have years of experience in international payment gateways, have positive customer reviews and provide industry-leading support.
Payment industry guru Taylor Cole is a passionate payments expert who understands the complex world of sagepay review. He also writes non-fiction, on subjects ranging from personal finance to stocks to cryptopay. He enjoys eating pie with ice-cream on his backyard porch, as should all right-thinking people.