Whether you are in a tourist area close to the U.S. southern border, or want to do ecommerce business with customers in Mexico and other Spanish-speaking countries, you can realize many advantages by accepting the peso as part of your international payment processing offerings. 

With a complete picture at your disposal, you can make the currency decision that is best for your company in the long run.

Ways to accept pesos.

There are two major ways for you to allow customers to pay with pesos. They include  cash and using a point of sale system.

If you accept multiple types of currencies, the peso will probably be among them. After all, the peso is the official currency of several Latin American countries, as well as in the Philippines.

Cash.

Taking actual peso bills and coins is probably the easiest mode of acceptance. In addition to needing to know how to identify the genuine articles of currency, taking cash also requires that you know the current exchange rates, and have a secure means to handle and store the bills and coins.

Point of sale system.

In today’s digital ecommerce marketplace, the point of sale system has become the preferred way to accept multiple types of currencies, including the peso. 

Your international payment processing provider is adept at helping you to configure your system to accept pesos. You can then furnish the customer with pricing details in their currency of choice, with pesos being converted into U.S. dollars at the time of purchase. 

The pros of taking pesos.

Expanding your currency acceptance to take pesos offers many potential benefits. They include potentially increased sales, attracting new customers, gaining a competitive advantage, and enhanced customer experience.

When you allow customers to pay using their currency of choice, you can look forward to a host of upsides. Sales may be boosted when clients discover that they can pay using a familiar monetary denomination, with less shopping cart abandonment as well. 

Additionally, you might see an increase in your customer base once you begin to provide a service that many of your competitors do not. All of these advantages lead to an enhanced customer experience that will bring about repeat sales and positive reviews.

The cons of taking pesos.

There are also some negatives that occur when taking pesos. These include exchange rate fluctuations, transaction fees, currency conversion costs, the possibility of counterfeits, increased administrative burden, and possible security issues.

Along with the upsides of accepting pesos come some potential drawbacks. Because the value of the peso can change, exchange rates also go up and down. Should the exchange rate move against you, there can be financial losses.

Additionally, you can expect to pay transaction fees and other currency exchange services which can reduce your profit margins. You may also be charged a fee to convert pesos into your primary currency.

Furthermore, there is always the risk of counterfeit currency. Without proper knowledge, you could suffer significant financial losses when you inadvertently take fake bills. All of these precautions require additional time and attention from you and your staff, including your accountants and bookkeepers.

Finally, there is always an elevated chance of security issues when you accept foreign currencies. These can come in the form of physical theft of cash or digital data breaches. 

In either case, it is vital that you create and foster an environment of security awareness, including focusing on training, cutting-edge technology, and regular internal and external audits.

In today’s global marketplace, you cannot afford to limit yourself by failing to accept pesos and other major forms of foreign currency. Doing so can bring a host of benefits to your international business. Just be sure that you understand the complexities, including associated fees and security risks in order to protect your company and provide the top-shelf experience that your customers deserve.