International Credit Card Processing

by Trisha on September 1, 2010

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The introduction of the Internet to consumers worldwide has changed the way companies do business.  No longer restricted by location, businesses can now sell their products and services to buyers around the globe.  In order to do this however, your company must use a credit card processing service that is capable of handling international transactions.  Here we look at international credit card processors and how they can help your business grow.

International credit card processors

In order to accept credit cards as a method of payment you will need a merchant account and a credit card processor.  For some businesses getting one or both of these things is not a problem, however many others, especially those that are either new or high risk businesses face a bigger challenge.  For home businesses or businesses that do a high volume of online sales, an international merchant account and/or credit card processing services are recommended.  Not only are international credit card processors more adapt at handling foreign transactions, they are also more familiar with with the laws that govern international transactions.  This is important in that different countries have different regulations as to how credit card transactions are handled.

Another important aspect of international credit card processing is the fraud protection offered by the provider.  Just as there are different laws regarding how a transaction is handled, fraud management is vital to ensure your transactions are secure and your business is protected from fraudulent transactions and the chargebacks that may result from disputed transactions.  An international processor will have the experience and expertise to handle these unique situations that come with accepting payments from around the world.

If your business is going to sell products or services worldwide, it is also necessary to work with a credit card processing company that is equipped to handle multi-currency processing as well as international taxation.  Again, these are unique situations that are not present when dealing with domestic sales.  A quality international credit card processor will also be able to help guide you through import/export issues that result from across the border transactions.

Your international credit card processor should also be familiar with and able to help you stay within the bounds of international privacy laws.  Each country that you do business with may have varying laws regulating how private information is handled.  If you are unfamiliar with these laws as a business owner, your credit card processor can ensure your transactions are handled correctly and that your business is protected.

Working with an international credit card processor can help your business in so many ways, making it possible to expand your business into areas of the world that otherwise would be unavailable to you.  In doing this, a business has the opportunity to reach target markets around the globe while ensuring their credit card transactions are handled in a way that guarantees protection to both the company and the buyer.  When selecting an international credit card processor, businesses are encouraged to follow some of the same guidelines as they would when selecting a domestic credit card processor.  Of course an international credit card processor will offer the same advantages while supplying your business with the knowledge and know-how to properly manage international transactions.

Photo via Katey Nicosia

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Post image for Reasons to Consider PayPal For Your Credit Card Processing

As a small business owner, you have a few different options for your credit card processing solution.  You can choose a merchant account through a bank, or a third party provider – like PayPal.com.  Here are 6 reasons to consider PayPal to process credit card payments from your customers:

1. Easy to Set Up and Start Accepting Credit Cards Right Away

With merchant accounts, you have to first get approved by the bank before you can start accepting credit cards. This can sometimes take awhile for the bank to check your credit and determine whether or not your risk is low enough to give you a merchant account. Not everyone will have a strong enough credit history to qualify for a typical merchant account. With PayPal, almost everyone is approved, and you can set up your account quickly.  Your customers then have the option of paying with credit card or their own PayPal accounts.

2. Flexibility

PayPal allows you to accept payments in six different currencies.  You can see digital or physical products.  You can also use PayPal to set up subscriptions with recurring payment plans according to the schedule you specify.  PayPal can be used both online and with offline retail set ups.

3. Low Fees For Credit Card Processing With PayPal

There are no set up fees, monthly fees or annual fees to use PayPal to process credit card payments from your customers.  You only pay when you use the account to process credit cards. The fees are 2.9% of your sales plus a flat rate of 30 cents per transaction, but the rates may vary a little depending on what country you live in or the amount of sales volume you process.

4. Association with eBay

If you set up a store with eBay or use eBay auctions to sell your products, PayPal is extremely convenient and integrates well with eBay (they’re owned by the same company).  Invoices are automatically generated when people choose to buy your items on eBay with PayPal, which means you can watch for the payments to come in and ship out your products with little administrative work on your end.

5. Merchant Tools

Included with your PayPal account are a number of merchant tools that help you generate financial reports and summaries, calculate shipping or add in sales tax to purchases.  Each month you can review or print a report of sales transactions, refunds, and fees paid.  Print it out and keep it in a binder and you’re well on your way to being organized for the tax filing season!

6. Protection and Fraud Detection for Business Owners

PayPal offers a protection policy for people using the system for credit card processing.  They work hard to prevent fraud and will work with you to recover from any fraudulent purchases.  They also offer Buyer Protection to consumers using PayPal to make payments, which may give your customers additional peace of mind purchasing from you if they can use PayPal.

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