Brazil eCommerce Payment Processing

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There are good reasons Amazon and other leading ecommerce companies are targeting Brazilian customers.

Brazil experienced a 29% increase in ecommerce in 2012.  And 2013 is poised to be another record year, with 25% growth and revenues topping $14.3 billion.

Brazil is the 5th largest global internet market.  Low unemployment rates, increasing wages, and a rapidly developing middle class of almost 100 million people are driving the desire for goods and services.

Brazil accounts for about 62% of total e-commerce sales in Central & South America region. Brazilians are web-savvy and comfortable shopping online.

As with all expansion into emerging markets, international payments specific to the country are vital to maximizing sales.

International Payments:  Brazil

There are two primary ecommerce payment methods in Brazil:  Boleto Bancarios and bank cards.

Boleto Bancarios.  These are bank transfers that can be done either through online banking or offline where the buyer can go to any bank to complete the transaction.  Similar to a cash transaction, funds are guaranteed and there are no chargebacks.

Online bank transfers are increasingly popular for ecommerce merchants.  At checkout, buyers select to pay with online bank transfers.  Customers chose their bank and are redirected to the bank site to log in.

Buyers immediately see the details of the purchase and authorize the payment.  Buyers are automatically redirected back to the merchant website.

Merchants are notified that the payment has been made.  Merchants can then fulfill the order.  Customers are emailed confirmation of order and payment.

Card Payments.  The main cards in Brazil are Visa and Mastercard, followed by Hipercard, Diners Club and American Express.

Many of the cards issued in Brazil can only be used for transactions inside of the country.  Therefore, merchants need to establish accounts directly with a Brazilian acquiring bank in order to maximize card sales.

Credit card installment plans are popular in Brazil because many cards have low credit limits.   Installment plans allow buyers to finance purchases with partial payments made over a period of time.   More than 50% of all ecommerce transactions in Brazil are based on installment plans.

Brazil offers tremendous opportunities to merchants who are seeking to increase profits through international expansion of markets.   The 2013 Confederation Cup and the 2014 Soccer World Cup in Brazil are sure to draw even more attention to the country.

Are you interested in targeting the lucrative Brazilian ecommerce market?  

For more information on establishing payment processing accounts in Brazil, contact

Businesses processing more than $100,000 per month are considered high volume merchants. As part of the application procedure, high volume merchants are asked to submit financial statements consisting of Balance Sheets and P&L (Profit & Loss) Statements.

The financial statements are part of determining the credit worthiness of a business. A merchant account, in essence, is a short term unsecured line of credit. Ultimately, if the business goes bankrupt or becomes financial unstable, the processors and banks can be liable for losses.

A fast-growing company without strong financial statements can still obtain an account. However, this type of business will be considered a high risk merchant account. The most important element to account approval in this instance is the credit rating of the signatory on the account.

Profit & Loss are also known as income or income & expense statements. The P&L summarizes the costs and expenses incurred by the company during a specific period of time, generally a fiscal quarter or year. The P&L indicates the ability to generate profit by increasing revenue and reducing costs.

Data taken from financial statements is often examined in ratios. Financial ratios are classified according to the information they provide. The following types of ratios are often used:

  • Liquidity ratios
  • Asset turnover ratios
  • Financial leverage ratios
  • Profitability ratios
  • Dividend policy ratios

Liquidity ratios give information about a company’s ability to meet short-term financial obligations. Two frequently-used liquidity ratios are the current ratio (or working capital ratio) and the quick ratio. The current ratio is the ratio of current assets to current liabilities. A quick ratio is an alternative measure of liquidity which does not include inventory in current assets.

Asset turnover ratios show how efficiently a company utilizes its assets. Two common asset turnover ratios are receivables turnover and inventory turnover. Receivables turnover indicates how quickly a company collects accounts receivables Inventory ratios show the cost of goods sold in a time period divided by the average inventory level during that period in accounts receivable before they are collected.

Financial leverage ratios indicate the long-term solvency of a firm company. Financial leverage ratios show the extent to which a company is using long term debt.

Profitability ratios indicate the success of a company at generating profits. The gross profit margin is a measure of the gross profit earned on sales. Return on equity is the bottom line indication for shareholders, showing the profits earned for each dollar invested in the firm’s stock.

Dividend policy ratios measure the dividend policy of a company and the prospects for future growth. Two common ratios are the dividend yield and payout ratio.

For more information on applying for your high volume merchant account, contact