International Payment Gateway – 7 Myths Busted.
As a merchant account consultant, I do work with business owners from different countries including India, Turkey, Croatia, Cyprus, and Bermuda to name a few. Most of these business owners are comfortable in accepting credit and debit card transactions from domestic buyers. When it comes to using an international payment gateway merchants, generally have few questions. Sometimes they may have extreme views about international payment gateways. Most of the negative views are probably because of common myths. In my previous blog post, I did mention the questions that I hate to answer but this blog post talks about those questions that i love to answer.
International Payment gateway Myth 1. It’s expensive.
Merchants sometimes feel that International payment gateway will invite heavy processing charges. Just because of this viewpoint many merchants prefer not to use any International payment gateway, and they only serve domestic customers. In reality, there is a massive competition between International payment gateway companies. Because of this enormous competition merchants are in a better position to negotiate the pricing. Most of the times the pricing for the international transaction would be only slightly higher than domestic transactions. The pricing also varies on multiple aspects like monthly sales volume, maximum ticket size, the credit score of the business owner, the financial standing of the company, type of industry Low Risk or High Risk.
Every business owner wants to focus on the growth of the company and that is why sometimes these business owners refrain just because they may have to put additional paperwork to get International payment gateways. In reality, the underwriting process and the KYC requirements for domestic and international payment gateways are most of the times pretty much the same.
International Payment Gateway Myth 2. It is not safe.
The Internet has thousands of review websites. Sometimes these websites may have few negative reviews about some payment service providers. I do not say that these negative reviews are not accurate but what I am trying to tell is that merchants should personally communicate and ask payment service provider before believing the reports. There is no harm in asking the representative about a specific review that you have found on the internet. The Internet is filled with anonymous reviews. Who knows maybe the review that you’re looking up is only a one-sided communication wherein the payment gateway company did not get the opportunity to respond.
To be on the safe side, you should always find out vital facts about the payment gateway companies. These facts include the
- Age of the company.
- The country they are registered in.
- Overall reputation.
- Transaction fees
- Payout Period
If it is a massive organization and there very few negative reviews then you should certainly ask the payment gateway company to clear your doubts. Genuine payment gateway companies located in your country and outside your country follow almost the same principles and guidelines. Payment gateway companies make money when a merchant accepts transactions. They do not make money if the merchant only gets approved and does not process. Of course, you as a merchant have to follow the terms and the guidelines of the payment gateway provider.
International Payment Gateway Myth 3. I Can lose My Money.
It is a common fear for most of the merchants who are trying International payment gateway for the first time. The merchant should try to get an international payment gateway from a domestic payment processing company first. In case if that solution is not available then the merchant should try offshore merchant accounts. After finding the reliable domestic or offshore payment gateway company, they should ask multiple questions to identify whether they are getting into a right relationship or not. It is also a good idea not process a massive amount of sales from the beginning. You can start with a small volume and then see how your relationship goes with the payment service provider.
International Payment Gateway Myth 4.My Current Option Is The Best.
Sometimes I find merchants who say that they are pretty much comfortable with their existing payment gateway i.e Domestic credit card processing and ACH Payment processing. This may be correct, but it’s worth checking the statements and the available rates in the market. Even if you are saving 0.01% on each transaction, you will be able to make a lot of savings in a span of 6 months to 1 year. As mentioned earlier in this blog post there is a massive competition between different payment service providers and that is why merchants can certainly go ahead and do their research and find more economical payment service providers.
International Payment Gateway Myth 5. International Buyers Won’t Pay Me.
Its common to find businesses operating only in the home country. These merchants should try to experience a paradigm shift by reviewing other similar companies that are selling internationally. The moment they start getting 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 different continents.Many organisations use same day echeck payment for small business transactions. These merchants usually render services to clients in the US.
International Payment Gateway Myth 6. I can not get an international payment gateway.
Sometimes this can be a preconceived notion. It’s what we think, but in reality, the Merchant may get approved for an international payment gateway. There is no harm in trying to apply to get a reliable solution which will help to accept more orders and generate more profits.
International Payment Gateway Myth 7. I Can Only Accept Credit Cards.
It is a common misconception. Most of us believe that with an international payment gateway merchants can only accept credit and debit card payments. In reality these days payment processing companies offer various modes. These days many third party ach payment processors in the usa also offer services to international merchants. Alternative options like ach and echeck can help international merchants to accept payments from international customers.
The team at Quadrapay will be happy to help you find reliable international payment gateway in countries like Gibraltar, Denmark, Germany, Bermuda, France , Italy, San Marino and other locations. Apart from these locations we assist merchants from all across the European union and European Economic area for payment gateways. Send us an email on [email protected] or feel free to call us on +1 6318321773.
If you have tried many processors and have not received any success then read this article about TMF Merchant Account Provider.
Suggested reading. Payment Gateway Vs Merchant Account Vs Payment Processor