An international payment gateway, along with an international merchant account, is a fundamental requirement to accept cross-border payments for your multinational business. These two elements are sine qua non (an essential condition) for any online business to accept international payments. An international payment gateway facilitates online payment transactions, while a merchant account allows you to accept, hold, and transfer this received payment into your regular bank account.
I would like to draw your attention to the fact that the value of global trade is all set to hit $32 trillion in 2022, according to the United Nations Conference on Trade and Development (UNCTAD). Whereas the worldwide sales of retail eCommerce (e-commerce means all businesses selling goods and services on the internet, including casino, forex, adult toys, and IPTV) are expected to surpass $5.7 trillion in the same time frame, showing that cross-border ecommerce is becoming a beneficial opportunity for online retailers.
To expand your online business worldwide, you need to obtain a high-risk international payment gateway and an international high-risk merchant account. These two essential components will be integrated with the third one (your trading platform) in order to accept cross-border payments. Selling products worldwide is a lot more beneficial than in a certain marketplace. Here are some reasons why you should choose to trade around the world:
Here is how a top international payment gateway generally works:
Transaction initiation: When a customer from one country makes a purchase on an online store or platform, they enter their payment information, such as credit card details or banking information, on the checkout page. The payment gateway encrypts the customer's payment data to ensure its security during transmission.
Payment authorization: The payment gateway then forwards the encrypted payment data to the acquiring bank or payment processor (actually, high-risk payment processors), which initiates an authorization request. Here we highlighted high-risk processors because usually they are the ones that provide cross-border payment processing services. Then the request is sent to the customer's issuing bank (the bank that issued their credit card or provided their payment method). The issuing bank assesses the authorization request, checking for available funds, account status, and potential fraud indicators. It responds to the payment processor with an approval or decline, along with any relevant transaction details.
Fund transfer and currency conversion: The payment processor receives the authorization response and relays it back to the payment gateway. If the transaction is approved, the payment processor also holds the funds for settlement. In cases of international transactions involving different currencies, the payment gateway may also facilitate currency conversion and exchange rate calculations.
Payment Settlement: The payment gateway then sends the transaction information, including the approval status, to the merchant's e-commerce platform. If approved, the transaction amount is settled and credited to the merchant's account after deducting processing fees.
Reporting and record-keeping: The merchant's website or application then provides a payment confirmation to the customer, acknowledging the successful transaction. The payment gateway maintains detailed transaction records for both the merchant and the payment processor, allowing for reconciliation and financial reporting.
Disbursement: After a predefined settlement period, the payment processor disburses the funds to the merchant's bank account, typically in the merchant's local currency.
Throughout this process, another important operation of online security assessments continuously runs in the background and strengthens the international payment gateway online security measures, such as encryption, fraud detection algorithms, and compliance with payment card industry standards, to ensure that sensitive customer data is protected and transactions are safe.
The characteristics of a top online international payment gateway consist of the below-mentioned functions:
Global Reach: An international payment gateway is designed to facilitate transactions with customers from around the world, supporting various currencies and payment methods to accommodate diverse customer bases.
Multi-Currency Support: A global payment gateway allows customers to make payments in their local currencies, and it can handle currency conversion for merchants who wish to receive funds in their own currency.
Security Features: Robust security measures, such as encryption, tokenization, and fraud detection systems, ensure the safe handling of sensitive payment data and protect against unauthorized access.
PCI DSS Compliance: Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is a must to ensure the secure processing of credit card payments and adherence to industry best practices.
Multi-Lingual Support: A cross-border payment gateway provides multilingual interfaces and customer support to cater to users from different linguistic backgrounds, enhancing the user experience.
Fraud Prevention: An international high-risk payment gateway provides advanced fraud detection tools, like machine learning algorithms and real-time monitoring, to prevent and mitigate fraudulent transactions.
Recurring Payments: It supports subscription-based and recurring billing models, making it suitable for businesses offering services or products on a subscription basis.
24/7 Customer Support: Reliable customer support, including 24/7 assistance, is crucial for resolving payment issues and providing technical support to merchants and customers worldwide.
Settlement Options: It offers flexibility in settlement options, allowing merchants to receive funds in their preferred currency and timeframe.
Scalability: An international payment gateway should be scalable to accommodate the growing needs of businesses, from small startups to large enterprises.
Compliance and Regulation: It adheres to international financial regulations and compliance requirements to ensure legal and ethical payment processing.
Transparent Pricing: Transparent fee structures and pricing models help merchants understand the cost of using the gateway and plan their finances accordingly.
Employing an international payment gateway offers several benefits for businesses, such as:
Global Market Access: It allows businesses to tap into international markets and reach customers worldwide, opening up new revenue streams.
Multi-Currency payments: International payment gateways enable businesses to accept payments in various currencies, providing convenience to international customers and reducing currency conversion hassles.
Enhanced Customer Experience: Global payment gateways enable customers to pay in their preferred currency and with their preferred payment method, resulting in a smoother and more satisfying shopping experience.
Security and Fraud Protection: Top international payment gateways often incorporate robust security features and fraud detection systems to protect both merchants and customers from fraudulent transactions.
Recurring Payments: With cross-border payment gateways, businesses can set up subscription and recurring billing models, ensuring a steady and predictable stream of revenue.
Increased Sales: By accepting a wide range of payment methods preferred by customers in different regions, businesses can increase their sales and conversion rates.
Scalability: As businesses grow, international gateways can scale to accommodate increased transaction volumes and more extensive customer bases.
Multi-Lingual Support: Many online international payment gateways offer multi-language interfaces and customer support, ensuring effective communication with customers from different linguistic backgrounds.
Cross-Border Expansion: International payment gateways facilitate the expansion of businesses into new markets without the need for a physical presence.
Compliance and Regulation: These gateways often adhere to international financial regulations and compliance requirements, reducing legal and regulatory risks.
Flexible Settlement Options: Merchants can choose how and when they receive funds, allowing for flexibility in managing cash flow.
Global 24/7 Availability: International payment gateways operate 24/7, ensuring that businesses can accept payments at any time, regardless of time zones.
Overall, employing an international payment gateway is essential for businesses aiming to succeed in the global marketplace.
Selecting the right international payment gateway for your business is a crucial decision. Here are some key considerations to keep in mind when choosing one:
Market Reach: Ensure that the payment gateway has a presence and can process payments in the countries and regions you plan to target. It should support the currencies and payment methods preferred by your international customers.
Security: While selecting an international payment gateway online, prioritize security features such as data encryption, tokenization, and robust fraud detection mechanisms. Compliance with the Payment Card Industry Data Security Standard (PCI DSS) is essential to protecting sensitive payment data.
Payment Methods: Evaluate the payment methods the gateway supports, including credit cards, debit cards, digital wallets, and alternative payment options. The more diverse the options, the better the sales chances.
Integration: Consider how easily an international payment gateway for ecommerce or other businesses can be integrated into your e-commerce platform, website, or mobile app. Look for user-friendly APIs and plugins that streamline the integration process.
Currency Support: Ensure the gateway can handle multi-currency transactions and provides real-time currency conversion if needed. This feature is critical for international sales.
Cost Structure: Understand the fee structure, including transaction fees, setup costs, monthly fees, and any hidden charges. Compare these costs with your expected transaction volume to determine affordability.
Scalability: Choose a payment gateway that can scale with your business as it grows. Ensure it can handle higher transaction volumes and accommodate additional markets.
User Experience: Assess the user interface and checkout experience for customers. A user-friendly and intuitive payment process can reduce cart abandonment rates and improve conversion rates.
24/7 Customer Support: Consider the quality and availability of customer support. Timely assistance is crucial, especially when dealing with payment issues that can impact your business.
Recurring Payments: If your business relies on subscription models or recurring billing, check if the international payment gateway supports this feature or not. Regulatory Compliance: Verify that the gateway complies with international financial regulations and industry standards. This is especially important for cross-border transactions.
Mobile Compatibility: Given the growth of mobile commerce, ensure that an international payment gateway for ecommerce provides a seamless experience for customers using smartphones and tablets.
Reviews and Reputation: Research customer reviews and the reputation of the payment gateway provider. Seek feedback from other businesses that have used their services.
PAYCLY is one of the best international payment gateway providers in Southeast Asia, emphasizing customer convenience and seeing the future of online business in cross-border transactions. It offers tailored online payment solutions for global enterprises, following a four-step approach: understanding client needs, conducting a thorough assessment, creating customized products, and implementing solutions. PAYCLY's online international payment gateway is a comprehensive cross-border payment processing solution, meeting all the requirements of an international business for seamless checkout pages. PAYCLY's expert team provides futuristic solutions and ongoing support to help businesses thrive, such as:
An international payment gateway is an online payment processing solution that facilitates secure cross-border transactions, enabling businesses to accept payments from customers worldwide in various currencies and payment methods.
An international payment gateway facilitates transactions between merchants and banks, while an online or digital wallet stores funds and enables users to make payments or transfers directly.
International payment gateways typically support various payment modes, including:
The support for payment modes can vary depending on the payment gateway provider and the regions they serve.
Yes, actually, international payment gateways are specifically designed for this. They enable businesses to accept payments from customers located in different countries, using various currencies and payment methods.
Documents required for setting up an international payment gateway may include:
