How Cross Border Payments Work in e-Commerce Websites
In today's financial world, globalization is the new religion. The businesses resisting this trend are doomed to disappear just like every entrepreneur beating the air in history. No matter if you own a small olive oil business from Sicily or a cryptocurrency exchange company in Great Britain, at some point you will need to open your e-commerce site to cross border payments. To have local payment solutions such as local banks and local e-wallets can lead to the limitation of your business and nobody wants it! Imagine what would happen if The Ordinary, Marks and Spencer or Swatch had decided to go local at the very first place. We would probably have never heard of their names. Life always awards the ones who ventures.
Have you finally decided to open your business internationally? In order to create a user-friendly checkout page, you need to understand how cross border payments work exactly. Let's explain step by step:
Purchase of the customer:
In this first step, the customer goes to the checkout page, chooses a payment method and inserts required information into the payment gateway page.
Directing and Control:
The inserted information of payment is sent to your acquiring bank which processes payments on behalf of you. Then the acquiring bank contacts your customer’s issuing bank to request approval.
Approval:
According to customer' funds, payment limits or currency match, the issuing bank either approves or declines the transaction.
Confirmation:
After this step, the issuing bank sends the purchased amount to your acquiring bank. Acquiring bank transfers it to your account depending on your pre-decision on whether you would like to get paid - either daily, weekly or monthly.
We have explained all the steps and as you may realize, you can improve this process with some simple cross border payment tips.
