Processing currencies and payouts on international transactions
News Nov 10, 2020
When selling online, businesses will generally be able to sell goods worldwide, as well as domestically. There is one catch, however - when payments are exchanged from a buyer’s issuing bank and sent to a merchant’s own account internationally, there is the annoying currency exchange fee that gets added into the process, this is because different countries have different currencies, which cardholder issuing banks charge fees on top of.

These foreign transactions work by charging the purchaser’s payment card a fixed fee at around 1 - 3 percent of the value of the transaction by the issuing bank. When this happens, all parties can lose out during the currency conversion process - the customer still needs to pay a mark-up fee, and your chances to never see him again in your store increases dramatically. 

Although 3 percent might not seem like much, it is an annoying fee that people generally pay any time they buy something online that is shipped from a foreign location. Merchants can often lose out on potential revenue when these fees become apparent - The vast majority of issuing banks charge these currency conversion fees, and customers are often oblivious to how much they are paying in their local currency.

The last thing you want as an online merchant is for your buyers not to have complete price transparency - Obviously, your website will only show your local currency, but buyers should ideally be charged at the market exchange rate, with virtually no fees. It is a huge pain point, as customers end up checking their account balance only to find they have been charged a mark-up fee. 

The risk here is that repeated purchases can be discouraged - if the buyer finds a local store online that offers similar products to yours, they will go straight to them, as there is a good chance there are zero fees involved. This is because the currency they pay in is supported by all parties involved: acquiring bank, merchant,  issuing bank and cardholder.

With a multi-currency payment solution, this additional fee problem gets alleviated for both merchant and cardholder. As a merchant, the best solution you can offer to maximise your sales revenue and maintain as many customers as possible is to utilise a multi-currency processing tool.

When you have a multi-currency processing solution, your customers will avoid the international transaction fee if they are buying from another country to yourself. The multi-currency feature will choose a currency that is commonly accepted in both yours (the merchant), and the buyer’s country, effectively processing the payment in a “local currency” format.


What are the benefits of a multi-currency supported solution to international payments? 

●      You can allow your customers to pay in local and foreign currencies - when customers have the option of their preferred currency for payment, there is a sense of trust that you as the merchant, are more transparent with international payments. The price of your products remains the same to buyers, for all of your supported currencies.

●      Improve the cardholder’s experience – With a multi-currency solution, your customers get a checkout experience they can understand. That means no more trying to work out how much something is worth. When customers are offered a price in their local currency, your services become more trusted, as they know exactly how much they are paying.

●      Reduce charge-backs and increase conversion rates - a multi-currency payment Gateway guarantees better customer satisfaction right up until checkout. When the customer can pay the price listed on your website with zero fees, they are more likely to opt to use your online store, even if you are international - this improves sales revenue and prevents customers from querying and complaining about hidden fees, as with this solution, there are no fees.

If you would like to find out more about how you can provide your customers with a multi-currency payment Gateway, check out DECTA. As a merchant, the most important aspect of international payments is the transparency of your pricing. When customers know there are no fees, you will find that it is far easier to boost your sales, as your checkout process caters to all buyers, local or international.