Move money, increase conversion, and optimize your payment mix.
How do your customers around the world like to pay for their purchases? To increase conversion, you will need to offer attractive sales terms along with appropriate and easy to use payment methods. Your goal is to get paid in full, on time and minimize payment risk while also accommodating the needs of the buyer. Here are some questions to think about and, further below, recent payment-related interviews with industry experts.
- What do I need to know about global payment systems?
As our payment experts like to say, “any sale is essentially a gift until the buyer has paid, and any payment is a donation until the buyer has received the goods.” As new technologies are becoming more widely available, the way companies pay for their products is starting to change. When choosing a payment system, you will need to consider a number of different factors, including cost, guarantees, security, fund collection and credit.
- How do my cross-border customers prefer to pay?
Payments are connected to the history and traditions of the region, and in some cases will contradict your expectations. There is a wide range of popular regional payment methods, and in order to reach local customers, you will need to take advantage of them. These can include credit cards, new payment technologies, and other more traditional payment methods.
- What are the differences between local and cross-border processing?
When a transaction is processed cross-border, there are more issues and fees than occur with a local payment, and declines are more common that in local payments. However, in order to process payments locally, you will need to operate your business in that country, which involves other challenges. We have helped craft further details on our DOC partner’s site here.
- How do you manage multiple currencies and minimize risk?
While providing currency conversion tools at the point of sale makes customers less likely to abandon their shopping cart or to dispute charges, there can still be bank fees associated with foreign payments, and the converted price may not reflect what the buyer actually pays. In order to avoid this, major banks and many specialized providers offer sophisticated hedging instruments and other methods for dealing with exchange rate fluctuations.
- What are the setup options for global processing?
Your choices depend entirely on the markets you’re selling in and size of your company/volume of sales in each market. These options include cross-border and local processing, hosted invoice and hybrid solutions.