Selling to foreign customers requires that you accept payments internationally. 

If you truly want to rise above your numerous competitors, inspire trust and meet the demands of buyers from other nations, one of the first steps you should take is to learn about how accepting multi-currency payments will benefit your business.

Multi-currency payments defined

Multi-currency payment processing involves allowing your customers to make purchases using their native monetary denomination of choice. In simplest terms, the buyer makes a payment in their own currency, and the seller receives the funds in theirs. 

International payment service providers furnish merchants with the tools and systems they will need to make this possible.

How multi-currency payments work

There are a few steps in the process of accepting foreign currencies. First, the customer makes a purchase and selects their preferred currency in the merchant’s shopping cart or payment gateway. 

The system then initiates the currency conversion process, including taking the current exchange rate into consideration and adding all required fees.

Next, the customer chooses their payment method of choice, i.e., credit card, digital wallet, wireless or ACH transfer or cryptocurrency, and provides payment details such as card numbers, bank account information, billing address, phone number, etc. 

Finally, in a complex process of communication among multiple parties, the currency is selected and the payment successfully processed.

The buyer then receives notification indicating that the transaction is complete. Funds will be withdrawn from the customer’s account in their local currency. The merchant will receive what they are owed, including any fees or markup charges. 

The payment processor settles the payment, converting the received amount back to the merchant’s base currency at the exchange rate both parties have agreed upon. 

Finally, the merchant sends a confirmation receipt to the customer indicating transaction details, payment amount and ID.

What multi-currency payment processing can bring to your business

It is safe to say that no company expecting to flourish in the foreign marketplace can do so without accepting secure payments in their customers’ currency of choice. If you have any doubts about the veracity of this statement, put yourself in a buyer’s place. 

Ask yourself how comfortable you would be making a payment in a denomination with which you are not familiar, particularly to a company headquartered in another country.

The first advantage that multi-currency payments bring to your company is financial savings. When you invest in a gateway that accepts multi-currency payments, the conversion fees you pay will be lower. 

You can then pass the savings onto your customers, helping to make buying from a non-local merchant more appealing.

Additionally, providing product pricing and currency information in a way that buyers understand and are familiar with will increase their comfort with and trust in your brand. With so many choices available these days, adopting this strategy helps shoppers feel at home with your brand even if you are headquartered thousands of miles away.

International multi currency payment processing allows the sensitive payment data of international customers to be protected by enhanced security measures and technologies, including tokenization and encryption. This helps to further build trust and loyalty while simultaneously providing risk mitigation for the merchant.

Accepting multi-currency payments through an international payment gateway also enables merchants to adhere to the complex web of regulatory standards that apply to cross-border sales. With a good payment gateway, you can rest assured that your payments infrastructure is in compliance with measures such as the Payment Card Industry Data Security Standard (PCI DSS) and the European Union’s General Data Protection Regulation (GDPR). 

As a result, the risk of fines, lawsuits and reputational damage will be significantly reduced.

Finally, accepting multi-currency payments through an international payment gateway leads to faster and more efficient access for the merchant to the cash they are owed. This happens because payments are processed quickly and securely, resulting in earlier settlement and the enhanced ability for the seller to access and manage their cash.

How to choose your multi-currency payment gateway

Navigating the waters of accepting foreign currencies can be challenging even for the most seasoned business owners. 

However, partnering with a payment processor that can provide you with the best international gateway can pave the way by mitigating risks and enabling you to furnish your customers with a transparent, clear payments experience at every step of the way.

For that to happen, accept nothing less than a gateway that comes equipped with a set of solid must-have features. Perhaps most important, the one you choose should support all of the currencies you wish to offer. 

If you anticipate expanding your business into other nations in the near future, be preemptive by ensuring that those monetary denominations are also included.

There are frequent fluctuations in the value of local currencies. In other words, the money might be worth more or less when the transaction is accepted than when settlement occurs. This is known as FX risk, and it can be reduced by partnering with a gateway from a provider who allows you to either fix the rate until settlement occurs or by using a live rate to seal the deal right away.

In addition, your international gateway should contain built-in security safeguards and anti-fraud tools. Because security requirements vary by country, it is important to ensure that the provider you choose supports the management of various 3DS protocols. 

When this is in place, chargebacks will be reduced while approval rates will increase.

In order to get paid with minimal delays, it is also important to ensure that the gateway you choose will integrate with your current payment systems. This should take place with the help of hosted payment pages that you can easily create as well as via easy-to-implement payment graphics and buttons that further streamline and simplify the customer’s experience with your website.

Selling internationally presents numerous opportunities for brand expansion and profits for businesses of all sizes. 

Accepting payments in multiple currencies that are supported by high-quality processors and gateways will furnish your company with the tools you will need to engender trust and loyalty and ensure that transactions are secure and in compliance with regulations.