Global ecommerce is projected to grow to $1.4 trillion by 2015.
The relentless expansion of global ecommerce represents an outstanding opportunity for companies who are savvy enough take advantage of it. Online shoppers are moving across national borders to buy products and services.
For example, Threadless, a company that sells t-shirts online, began expanding internationally in 2010 after noticing an increased interest by customers located outside of the US. By 2011, international buyers accounted for 60% of sales.
Companies that are seeking to expand sales globally need a way to process payments from buyers. Establishing international merchant accounts in in targeted marketing jurisdictions is part of an overall strategy to increase sales from a global customer base.
Interchange rates vary throughout the world. Processing local transactions through a local acquiring bank gives merchants the ability to take advantage of lower interchange rates within a particular country or region.
In addition, companies can paying local vendors and vendors from settlement funds from the international merchant account in local currencies. This eliminates the need for costly foreign exchange conversions.
Applying for an merchant account offshore is similar to applying for a domestic account. An application is filled out by the merchant and submitted, along with due diligence documents necessary to underwrite the account.
Most direct accounts with acquiring banks will require a merchant to establish a corporation within the jurisdiction where the bank is located. This is simple to accomplish. You can wait until the account is approved prior to incorporation.
Approvals for offshore merchant accounts generally take 2-4 weeks, due to time zone differences. Once established, an international account is as safe and secure as a domestic account.
In addition to credit card processing, merchants are wise to add local payment methods such as bank transfers to the checkout page. While card use is growing internationally, many global buyers still prefer the convenience and familiarity of local bank transfers and other alternative payment options.
Alternative payments can increase sales up to 40%. Payments like bank transfers are similar to cash transactions, with virtually no risk of chargebacks. This is helpful for merchants who are keen to expand internationally but want to control the risk of chargebacks.
Global ecommerce represents the fastest growing opportunity to increase online sales. Shoppers around the world are seeking to buy your goods & services.
International merchant accounts are important to get more orders from international buyers. Multi-currency processing keeps shoppers concentrated on making a purchase rather than figuring out how much an item costs.
Offer alternative payments to get more sales. Localized payments give buyers a way to buy without using a card. And one of the fastest way to increase orders.
Are you interested in increasing sales & profits with intenational payment processing?
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