The question that is frequently asked is if a business necessarily requires a multi-currency approach. That answer is yes, although Visa and MasterCard transactions can be accepted by any merchant whether or not they are dealing with foreign or local cards if they incorporate global payment processing on their eCommerce stores for purchases.
With so many companies extending their reach beyond the local markets; multi-currency payments are common when businesses start to accept international credit cards, where customers are paying in foreign currencies. Most of the frequent currencies that are most popularly used in multi-currency exchanges for international websites are, but not restricted to, USD, CAD, GBP, EUR, ZAR, AUD and NZD.
Starting multi-currency payments
As business owners, there are three main reasons to start accepting international payments for a website that regularly handles international purchases. The main reasons are for marketing, administrative, and commercial reasons.
Marketing is quite simple to understand, as it is imperative to convert as many browsing potential customers into happy and satisfied customers for the growth of the company. This can be done in a number of ways, but the most important aspect is the payment section. Statistics show that customers frequently abandon their shopping cart at the last moment when they realize that there are limited payment choices that may not be attractive to the person. Therefore, the buyer abandons the cart for a later time.
Administrative reason for switching to multi-currency payments maybe for supplier payments of foreign items sold from international locations. In such cases, having a system that allows payment acceptance and disbursement in local currencies to pay the local supplier without any delay and also so that there is no extra hassle of conversion rates is prudent.
Another administrative advantage is that it is easier to solve disputes for chargebacks. Chargeback typically happens when a customer wishes to return the products. In the case of single currency payments, this process becomes extremely hard with fluctuating exchange rates and the company will and the customers can lose out in case of low exchange rates. This is simplified when the business offers multiple currency payments to international customers.
The commercial angle of the multi-currency acceptance is the huge saving on each transaction. When a business owner decides to accept multiple payments, it is cost-effective solutions without the cross-border fees that will naturally incur with single currency payments. The cost saving can be anything between 1% and 5 % per transaction, and that amount is huge when it builds up, saving the business money over time.
Business owners have numerous choices when it comes to choosing the right connections for their payment structure. This is a competitive market and there are many payment processors who understand and offer business owners lucrative offers for minimal fees so that there is increased profitability for the vendors.The industry for global payment processing has been steadily rising, meaning there is a number of international clients using multiple currencies than ever before, making it crucial for businesses to invest wisely in the right processes and systems to enjoy the most benefits in the market.