In 2019, almost 2 billion people globally took advantage of online services or goods. The global e-commerce sector has reached $2.8 trillion per year. According to an estimation, the online market will rise to $4.8 trillion by 2021.
These figures demonstrate the growing significance of online platforms. While the method of online shopping is comfortable for consumers, it can be challenging for business owners, particularly for the ones that provide services or goods throughout the world. They might face multiple issues, such as accepting payments from banks of different countries, accepting multiple currencies, risk factors involved in online transactions, etc.
If you are an online business owner who wants to provide its consumers with different payment alternatives that are secure and reliable, you can take advantage of international merchant accounts. Here is all you want to learn about it.
The e-commerce site with customers from different parts of the world uses an international merchant account to efficiently and smoothly accept payment from consumers worldwide.
Having an international merchant account will ensure that you can provide consumers with the payment alternatives that are comfortable for them. There are various other benefits of international merchant accounts.
Here are some of the benefits of an International Merchant Account.
In the payment process, either the consumer or business usually incur some extra hidden charges. Most global e-commerce businesses receive massive amounts of international payments or large numbers of receivables from international clients. They lose a good amount of cash in the name of transaction fees.
Besides, sometimes there is no disclosure of flat fees charged on incoming wire transfers until the payment is received. In such a situation, you have to perform a transaction without knowing about the charges you will be charged. On the other hand, international merchant accounts help to skip these extra charges or manage them so that you only have to pay a small percentage of it. In both situations, you will save some cost.
Moreover, with a merchant account, you do not have to worry about the external factors that affect your transaction. You can focus only on your transaction amount. A merchant account removes the hidden fees by directly processing the ACH/debit transaction, which does not go through costly international wires. Also, discarding the flat fees means you don’t have to pay on incoming money.
Online businesses pose a considerable risk of online fraud. There are con artists who pose as consumers. Regardless of their scale or market value, online fraud is an issue faced by almost every online business. Several issues, such as return, refund disputes, unauthorized transactions, etc., can degrade your credit score and taste your online image.
In such a situation, merchant accounts help a lot. They are not only for accepting payments from different methods. They help you fight online fraud and bounced checks that try to steal the profits of your business. Most merchant accounts have a payment processor and gateway that fight against fraud.
It ensures that you can accept payment from various methods without risking your hard-earned money. Besides, the database keeps a record of all transactions through your merchant account. It helps to win chargeback disputes, if any. Thus, it also supports your credit rating and image.
The process of foreign exchange is unpredictable. In the past, many businesses have incurred losses from it. The rate of foreign exchange has a significant impact on both the parties involved in the transaction, that is, you and your consumer.
The business owners try to avoid any issues that might arise due to incorrect accounting of foreign exchange rates by consumers. On the other hand, consumers want to have cost-effective, fair foreign exchange rates.
An International Merchant account helps both. It displays the set foreign exchange rates. So, the consumer is always aware of any interchange fee or fluctuation of rates.
It is one of the most significant benefits of a merchant account. Having a lot of international customers who do not pay on time negatively affects your business. It affects your cash flow, and the uncertainty around the already raised invoices hurdles your business growth.
Having a merchant account solves these issues. An international merchant account gives the option to your international consumer to pay, and you can confirm the receipts immediately. It discards the need to reach out to customers regularly for payment.
Having an international merchant account gives you an edge to stand out from your competitors. This is because you can give service at those places where your competitor does not operate.
Besides, expanding your business internationally will give you exposure to new technologies, industry ecosystems, and new techniques. It might significantly improve your operations.
So, if you want to target international customers, an international merchant account will help you a lot.
How to get an International Merchant Account?
Getting an international merchant account is a simple, straightforward process. Begin with looking for a payment processing service provider. Then submit documents related to your business. Some documents that most payment processors require for a merchant account are:
- Identification card for a signer in the account
- voided check for that bank where processing funds needs to be settled
- business bank statements
- payment processing history
- details about your business entity
- A live website
- Firm registrations
- SSL certificate
- Bank account details
Once you apply for a merchant account, most service providers offer a full-time international processing specialist. They will guide you whenever you get stuck in the service.
Nowadays, most things are online. People prefer it over the offline medium because of the convenience it provides. You get everything with a click. It is also an opportunity for tech lovers to make a space in the marketplace. However, to open an online business for the world, you need an international merchant account. Now you are aware of every aspect of such accounts. It will help you to boost your sales.