Modern internet technology has rendered geographical distances insignificant, making it possible to sell just as easily to people across the world as it is to your next-door neighbor. As a retailer, you may now find yourself eager to tap into the boundless potential that international ecommerce could bring to your business. To do so however, you must first have a thorough understanding of multi-currency payment processing as well as how to incorporate it into your checkout process.

What is international payment processing?

No guide to multi-currency payment processing would be complete without a definition of the term. Simply put, it refers to the added layer of functions that allows a business to accept currencies other than that used in the business’s home country. These complex issues include the following:

• Converting foreign currencies into the business’s “home” currency.
• Revaluing currencies as their worth changes over time.
• Generating consolidated reports for the business that take all currencies into account.
• Recognizing and following the unique, separate regulations of each country where the business has a presence.

Accomplishing these tasks effectively and accurately can help to engender trust, keep errors to a minimum, and ensure that your company complies with local standards and rules.

Benefits of accepting multiple currencies.

With the stakes of selling abroad so high, you may be wondering if international ecommerce is right for you. Of course, only you know your own unique goals and constraints. However, keep the following advantages in mind as you weigh the pros and cons:

• Enhanced shopping experience. The truth is that buyers prefer to make purchases in the monetary denominations they are familiar with and understand. They don’t want to undergo the hassle of doing their own conversions to take exchange rates and fees into consideration.
• Lower costs on your end. This is especially true when customers who have purchased your products in their own currency opt to return them. When this happens, the refund they receive will also be in their native yen or euros, minus any fees resulting from changes in the exchange rate.
• Fewer declined transactions. When you choose an international payments processing  company that has established relationships with local banks in your foreign country or region of choice, you can eliminate some of the fees you would otherwise be required to pay that might ultimately need to be passed on to your customers. With maximum transparency and minimum extra charges, your potential buyers will feel much better about entrusting their payments to a foreign seller.
• Fewer chargebacks. Any retailer knows that these involuntary funds reversals are an inevitable part of doing business whether the transactions take place domestically or across borders. However, a good international multi-currency payment processing company will minimize unclear messaging and vague charges to your customer that could cause them to dispute the purchase.

Providing a secure, transparent, and trustworthy purchasing experience is important for any seller. It is even more crucial for stores marketing abroad. A gold-standard international payments processor can ensure that both you and your customers gain these benefits. Important considerations when choosing a processor to help you accept multi-currency payment, include the following important factors:

• Desired processing and settlement currencies.
• Required and preferred payment types for the countries where your customers are located.
• Restatement. When generating and using business reports that take all of the foreign countries you serve into account, you need to consolidate totals into your local currency. By doing so, you can remove exchange rate fluctuations that occur over time to make more accurate comparisons and analyses.
• Cross-border fees. These are imposed by banks and can increase as the number of international payments you make goes up.
• The use of foreign exchange specialists. You may opt to use these services to transfer large amounts of money in alternative currencies. They are often faster than foreign banks.
• Accepting credit and debit card payments. While accepting international payments made in these formats incurs a fee, you can opt to pass them on to your customer.
• Investing in an international payment processing service. This specialist company is responsible for securely managing the payment process from end to end. They enable you to accept transactions in multiple forms depending on the region or country in question and can remove many of the headaches from multi-currency ecommerce.
• Research the local cross-border regulations, financial rules, and tax structures of the countries  where you want to sell. Failing to have a complete grasp of these details can be fatal to your cross-border plans. Since the stakes are high, many businesses of all sizes opt to hire consultants based abroad who are well-versed in local laws and requirements.

After devoting your attention to these elements, you may choose to take the next step by accepting international payments. Doing so involves:

• Negotiating the rates. This is based on processing volumes, perceived risk, and business history.
• Submitting an application to your chosen processor. Approval times vary anywhere from a few days to months depending on the processor, the currencies requested, and the risk associated with your business.
• Connecting your website to the international payment gateway once your application isapproved. You have many options when accepting payments, including simpler ones such as online invoices and manual processing using a virtual terminal. Many smaller sellers opt to start with these less complex methods and then slowly enhance their offerings to include a full-fledged multi-currency ecommerce website.

When you sell goods and services abroad, you must overcome additional challenges, not the least of which is earning your potential customers’ trust. Giving them a website in their own native language that is easy to understand and navigate is a great start. At the next level, you can make products available in your buyers’ local currency, with all charges explained and with a comprehensive FAQ section. Once you implement these features, you can overcome buyers’ initial reservations by providing them with a clear, secure, and transparent shopping experience from start to finish.