Internet Credit Card Processors For The International Market
Gary Hyman
75% of the Internet population will be non-English speakers by 2005. Selecting a Credit Card Processor for the Internet is one of the key ingredients to ensure a suceessful International e-Business.
Approximately 75% of the Internet population will be non-English speaking by 2005. Put this together with the predicted 2 trillion plus USD e-Commerce industry, and you have an nteresting set of dynamics taking place. Language! Culture! Money! Product! If you intend to sell your product into the International market then you better pay special attention to the language and culture. Listening and acting upon cultural requirements is a step towards making your organization a success.
From a cultural perspective, selecting the the right Credit Card Processor' is an important piece of the International e-Commerce jigsaw puzzle. The market is literally flooded with the Credit Card Processors, and have various alias's - credit card clearers, transaction processor, payment provider, payment processor, digital payment processor, etc. You get the idea!
I've been asked often enough about selecting 'A Credit Card Processor' that I decided to write a short article that helps cut through the hype. Once you narrow your choice to a few 'Credit Card Processors' then you need to drill down another layer and understand cost & contract commitments, supports services, contingencies, etc.
Merchant Account - International Acceptance
Firstly you will need a merchant account. A merchant account will allow you to transact business via credit cards, and also provides a mechanism to have the funds deposited after settlement. For the most part, the merchant account is a straightforward to establish, as long as you can prove you are a low financial risk. Most 'credit card processors' will provide (or coordinate) the merchant account setup for you. Your alternative is to go directly to your bank and apply for a merchant account, or use a 3rd party (e.g. Verotel - http://www.verotel.com) who provides a 'shared' merchant account.
In the International arena, you need to pay close attention to the the location where your company is legally registered. Some merchants account issuers require your company to be located in the same country as the issuer. Each issuer have their own rules and regulations.
The Shopping Cart - The Right Language
You will find that some 'credit card processors' provide shopping cart checkout facilities. It is important that the checkout software is localized for your target market. There is nothing more painful (for the shopper and the business) when a shoppers abandons the transaction because the checkout facility was not in the language of their choice. Needless to say the entire web site should be in the localized language too. From my experience, and speaking in general terms, the Japanese, Koreans, Spanish and Germans tend to feel more comfortable transacting business in their native tongue. These four groups make up roughly 40% of the total e-Commerce transactions. Aim to please your target market!
If your 'credit card processor' does not offer either the localized version of the software or does not offer it at all, you can always integrate a 3rd party solution. Miva (http://www.miva.com) is a good example of a 3rd party solution. They have both a European and Asian presence.
The Credit Card - Many Types
There are many types of credit cards in the International market. Visa, Mastercard, American Express, JCB, Diners Club and Discover are the most prevalent credit cards. Smaller card issuers in the different countries exist too, but will not be the focus of this article. Given this, you want to make sure your 'credit card processor' supports the credit cards for your target geographic region. For example, if your credit card processor cannot support JCB and you intend to do business in Japan you should probably look elsewhere.
The Credit Card - Black List
Some 'credit card processors' do not accept credit cards that have been issued outside of their home country, while others will not authorize a credit card transaction from a 'black listed' country. You should understand your 'credit card processors' position on this issue, especially if you are going to be transacting business in the International arena.
The Credit Card - International Fraud
Fraud is a major concern on the Internet. It is a global issue. In an online community your transactions can originate at almost any of the 170 million plus registered domain. As a merchant, you should understand who is liable in the event of credit card fraud – the merchant or the credit card issuer/underwriter. Most 'credit card processors' will insure you against fraud, and usually have logging and tracking facilities to help them hunt down the origins of the fraudulent transaction.
The Credit Card - Settlement Time
Your cash flow is important, and equally important to be aware that International credit card transactions may take a week or more to settle. This means that the funds from the transaction will hit your account in roughly one week from the transaction date. Understand the settlement lead time & plan accordingly.
The Credit Card - Credit Limit
Credit card processor will typically put a limit on your credit, and you need to make sure you do not run into an awkward situation by which the transaction is declined due to a ‘maxed out credit limit’. Most 'credit card processor' will continually review your credit and adjust it accordingly, but you need to make sure that your credit limits are high enough to accommodate the volume of International business.
The Bottom Line
The bottom line – make sure you select an appropriate 'credit card processor' who can support your organization in the International market. You may find the following 'International Credit Card Processors' a good starting point for your investigation.
- Pay Systems – http://www.paysystems.com
- iBill – http://www.ibill.com
- Multi Cards – http://www.multicards.com
- Verotel – http://www.verotel.com
- World Pay – http://www.worldpay.com
- Verisign – http:/www.Verisign.com
About the Author
Gary Hyman has lived and worked Internationally over the last 20 years. He is an e-Commerce consultant, assisting organizations to expand their global presence via e-Commerce. He can be reached at mailto:gih@ecommercegrowth.com. The e-Commerce Growth Group at http://www.ecommercegrowth.com.
