Brexit Vs. Global eCommerce

Jul 27, 2016

Brexit’s impact on its broader economy began almost immediately. How the British decision might affect eCommerce sales in the UK is not clear yet.

Views on Post-Brexit eCommerce in the UK

According to Scurri, a software company automating online fulfillment, the hit by Brexit could be enormous. Scurri believes the 10% of UK eCommerce sales coming from other countries’ consumers could be brought under question or even lost if these consumers will stop shopping on UK-based sites. The adverse is also possible.

Key Business Drivers and Opportunities in Cross-Border E-Commerce from Payvision and has recently released a report. Based on the report, UK consumers will probably do their shopping at foreign Websites: 54% have already had at least one such experience.

Gijs op de Weegh, Payvision’s COO, thinks British consumers cannot afford buying as much with their money abroad since the British pound is losing its value to a great extent. This could also lead to consequences for the United States.

These days, it is critical for merchants to apply to a trustworthy payment processor like eMerchantBroker to get the best for their business. EMB is voted the top payment processing company in the US and has an A+ rating with the Better Business Bureau.

The US and the UK after Brexit

Op de Weegh believes the US and the UK are strong cross-border trade partners. About half of international US merchants are exported to the UK, and a third of UK consumers make purchases from US websites.

The UK might also leave the EEA (the European Economic Area), which allows for free movement of persons, services, goods, and capital among countries. If this happens, US-based exporting retailers could regard eCommerce between the 2 countries more expensive and complex.

On the other hand, the pound’s decline could make the British stop shopping abroad. This is according to Aite Group’s senior analyst Ron Van Wezel. He further notes that the UK has a trade deficit with the EU and a cross-border eCommerce surplus with EU member states.

So if the EU and the UK go on with a free trade scenario with no tariffs introduced, the eCommerce trade balance will depend on the value of the pound sterling against the euro. The devaluation of the pound could stimulate exports to the continent.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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