International Payment Gateways – Busting 7 Myths
As a merchant account consultant, I work with business owners from various countries, including UK, Italy, Croatia, Cyprus, and USA, among others. Many of these business owners are comfortable accepting credit and debit card transactions from domestic buyers. However, when it comes to using an international payment gateway, merchants often have questions and sometimes hold extreme views based on common myths. In a previous blog post, I mentioned the questions I dislike answering, but in this post, I will address the questions I enjoy answering.
Myth 1: International Payment Gateways Are Expensive | Breaking the Cost Barrier: Competitive Pricing and Negotiation
Merchants sometimes believe that international payment gateways come with hefty processing charges. Due to this misconception, many merchants prefer to only serve domestic customers and avoid using any international payment gateway. In reality, there is intense competition among international payment gateway companies. This competition allows merchants to negotiate pricing to their advantage. Most of the time, international transaction pricing is only slightly higher than domestic transactions. Pricing also varies based on factors such as monthly sales volume, maximum ticket size, the credit score of the business owner, financial standing of the company, and whether the industry is classified as low risk or high risk.
While every business owner wants to focus on the growth of their company, some may hesitate to pursue international payment gateways due to potential additional paperwork. However, the underwriting process and KYC requirements for domestic and international payment gateways are often quite similar.
Myth 2: Safety Concerns with International Payment Gateways | Ensuring Security: Separating Fact from Fiction
The internet hosts thousands of review websites, some of which may contain negative reviews about certain payment service providers. I’m not suggesting that these negative reviews are inaccurate, but I encourage merchants to personally communicate with payment service providers and inquire about specific reviews they have found online. There is no harm in asking representatives to address any concerns related to reviews. It’s important to recognize that the internet is filled with anonymous reviews, and it’s possible that the review you are reading represents a one-sided communication, with the payment gateway company not having the opportunity to respond.
To ensure safety, merchants should always gather essential information about payment gateway companies, such as:
Age of the company
Country of registration
Overall reputation
Transaction fees
Payout period
If a well-established company has only a few negative reviews, merchants should approach the payment gateway company to address their doubts. Genuine payment gateway companies, both local and international, generally follow the same principles and guidelines. Payment gateway companies make money when merchants accept transactions, not when they are only approved and do not process transactions. However, merchants must adhere to the terms and guidelines of the payment gateway provider.
Myth 3: Fear of Financial Loss with International Gateways | Mitigating Risk: Approaching International Gateways Strategically
Fear of losing money is common among merchants trying an international payment gateway for the first time. Merchants should initially seek an international payment gateway from a domestic payment processing company. If that option is unavailable, they can explore offshore merchant accounts. After identifying a reliable domestic or offshore payment gateway company, merchants should ask multiple questions to ensure they are entering into the right relationship. It is also wise to start with a small sales volume initially and evaluate the relationship with the payment service provider over time.
Myth 4: Your Current Option Is the Best | Exploring Alternatives: Uncovering Cost Savings
Some merchants claim they are comfortable with their existing payment gateway, such as domestic credit card processing and ACH payment processing. While this may be true, it’s worth checking statements and available rates in the market. Even if merchants can save 0.01% on each transaction, they can accumulate significant savings over six months to a year. As previously mentioned, the fierce competition among payment service providers allows merchants to conduct research and find more cost-effective options.
Myth 5: International Buyers Won’t Pay | Expanding Your Reach: Unleashing the Power of Global E-commerce
It is common for businesses to operate solely within their home country. However, such merchants should consider reviewing other similar companies that sell internationally. Once they start receiving orders from international buyers, they will realize the full potential of e-commerce. Many e-commerce websites sell products and services to customers in different countries and continents. Many organizations also utilize same-day eCheck payment for small business transactions. These merchants typically offer services to clients in the US.
Myth 6: Inaccessible International Payment Gateways | Accessing Global Opportunities: Overcoming Perceived Barriers
This is a preconceived notion that can be dispelled. Merchants should not hesitate to apply for a reliable solution that enables them to accept more orders and generate more profits.
Myth 7: Limitations to Credit Card Acceptance | Embracing Diversity: Payment Options Beyond Credit Cards
It is a common misconception that with an international payment gateway, merchants can only accept credit and debit card payments. In reality, payment processing companies now offer various modes of payment. Many third-party ACH payment processors in the USA also offer services to international merchants. Alternative options such as ACH and eCheck can help international merchants accept payments from customers worldwide.
Quadrapay: Your Partner for Reliable International Payment Gateways
The team at Quadrapay will be happy to assist you in finding reliable international payment gateways in countries like Gibraltar, Denmark, Germany, Bermuda, France, Italy, San Marino, and other locations. In addition to these locations, we provide assistance to merchants across the European Union and the European Economic Area for payment gateways. Feel free to reach out to us via email at [email protected].
If you have tried many processors without success, you may find this article about TMF Merchant Account Providers helpful.
