An international merchant account comes with multiple features and some specific qualities required in a particular industry. In many ways, it helps the merchants run their businesses smoothly and grow their business while earning a lot of profit and reach to new markets geographically. It can be interesting to know how an international merchant account handles multiple issues for business owners.
Prevention of online fraud
All you merchants out there know that it is a real task to operate a business offshore. Crossing international boundaries naturally invites multiple risks and online fraud is one among them.
The most common and dangerous online fraud types are –
- Online scammers acting as buyers
- False chargeback demands also known as friendly fraud
- Online scams and canceled checks to make money from a business illegally
How does an international merchant account prevent fraud? – The account providers along with the payment gateways and payment processors prevent scams through fraud prevention tools. Merchant account-providing banks maintain the data of all transactions and thus it becomes easy for a merchant to fight against false chargeback demands. Besides, compliance with payment card industry data security standards keeps a strong shield of protection around transactions. The customer’s payments and details reach securely to the merchants.
Stand strong against competitors
In many ways, international merchant account solutions help stay competitive and even perform better than competitors. When a merchant knows that a complete system of his merchant account provider, the business owner can run the business smoothly.
Challenges faced by a merchant against competitors
- Business expansion to new international markets despite the presence of industry giants or established brands.
- Business expansion in new markets before the other competitors.
- Developing trust between the customers and gaining new customers.
- Brand building in the international market with the existing domination of competitors.
How do international merchant accounts help stand strong in competition? – with the help of an international business account, a merchant can expand his business to locations where the competitor does not exist. The merchant accounts ensure safe casino payment processing along with payment gateways which in turn builds trust among the customers. A business can also improve its image through a brand building at an international level. All these factors help get more attention from buyers globally.
Payment settlement in the currency desired by a merchant
For many purposes, a merchant needs to get the money in his desired currency, it can be in Euros, dollars, Yen, etc. Thanks to the supportive presence of merchant account providers that make it happen and help the owners run their business in an extremely smooth manner.
Problems a merchant faces if payment is not settled in the desired currency –
- Cash flow in a business gets affected adversely
- Settlement in other currencies also obstructs the real-time settlement
- Increased cost, as the merchant has to convert the currency
- Time wastage because currency conversion takes time if not done through a merchant account
Role of international merchant accounts in facilitating settlement in preferred currency – there are multiple high-risk merchant account providers that can get you paid in your preferred currency at an affordable cost. Also, when the settlement is facilitated by the merchant account, it takes less time, and the merchant can immediately invest the funds in business resources or can save it for the future. Above all, the merchants remain prevented from the volatile nature of foreign exchange because the international merchant accounts have specific exchange rates that keep control of the costs.
Merchants do not need to have local bank accounts in every country
International merchant accounts provide an all-inclusive solution to the merchants and an important solution they provide is eradicating the need for local bank accounts. The businesses do not need to have a separate bank account with any local bank just to receive payments from the customers in that nation.
Problems that merchants face if they have to take local bank accounts in every country
- Cost increases if a business has to take a separate account in every country.
- Every country has its own rules for the banking system which makes things complicated
- Merchants have to waste additional time handling all those banks
- It is complicated to take care of the security of all the bank account
How do international merchant accounts provide a better solution for the problem?
With a single international business account, merchants do not need to go through the tiring procedure of applying for foreign bank accounts in every country. Only one account can be used to accept payments from multiple countries and also in multiple currencies. The customers can keep paying in their preferred currency and the merchant will get paid in his preferred currency.
Enjoy the eradication of hidden fee
You will find many international merchant account-acquiring banks that have no hidden fees. They follow a completely transparent procedure and that gives a direct benefit to the merchants. It reduces the overall cost of the business and helps create bigger emergency funds.
Loss of hidden fees that normally commercial entities face –
- hidden fee is not an authentic practice and makes a company prey to unethical business practices.
- Hidden fees can thoroughly affect the overall cost of a merchant account service which badly affects the health of a business in the long run.
- The hidden fee is an expensive affair specifically for businesses that process a high volume of transactions.
How do international merchant accounts help businesses by eradicating hidden fees? Merchants can easily find many merchant account providers that do not charge any hidden fee. By processing direct debit payments without any costly international wires, the acquiring banks help the companies get rid of the fear of hidden costs. In fact, some account-providing banks even ignore the flat prices applicable to deposits. Technically the merchant does not pay any charges to accept payments. Isn’t that an amazing offer for a business?
Conclusion
You can now understand how and why an international merchant account is capable of handling multiple complications for a business. Besides facilitating the transactions for a business there are many other things that a merchant account does for a business, and you can read that above. If you are a business owner, you know the significance of such business accounts. Next time, if someone asks you how a merchant account helps a business manage an offshore business, you will have all the above points to mention.
