Doing business overseas is challenging. To thrive, a business needs more than just a basic understanding of a global market. An organization needs to research and explore legal liabilities, regulations, and unexpected costs to ensure cross-border payments occur seamlessly.
Cross-border payments can no longer be just about moving funds from one account to another. Finding the most efficient way to makes payments with the fewest possible obstacles is what every merchant and customer needs. A travel merchant account, which allows your business to accept and process credit card transactions, offers your organization the flexibility and security you need to accept overseas payments with ease.
Domestic vs. Offshore: What to Consider
Cross-border payments become more complicated due to exchange rate fluctuations with local currencies and monetary restrictions imposed by some governments, such as China. Therefore, it is vital that you know and understand the needs of your business and what is available to you.
If you are business that will be working with customers around the globe, then an offshore or international merchant account may be the best option for your business. Some of the advantages of having an offshore travel merchant account include:
- Saving money on processing fees because you get to take advantage of lower interchange rates
- Gaining access to alternative payment methods that are used more often overseas
- Reducing foreign exchange expenses
A domestic travel merchant account is a much better choice if your business offers travel arrangements, charters, and other services solely for U.S. customers. Though a domestic account is a good choice, it is not a bad idea to combine that with offshore processing. Offshore processing cuts down on risk by diversifying the locations of banks, and in many cases, offshore accounts don’t put any monthly caps on processing volumes.
Find Out International Restrictions and Regulations
Some countries have laws and regulations that prevent certain activities. Before opting to do business in those countries, be sure you understand what you are up against. Differences in culture and language are considered soft barriers that can lead to huge problems. In these types of situations, it is important that you do your homework and find out about them.
Understand Your Risk Level
Be sure you know exactly what is right for your business before you pursue a travel merchant account. Make sure the merchant service provider you plan to use is capable of meeting your requirements, including offering seamless cross-border payments.
Since travel agencies and tourism businesses are known as a high-risk businesses due to high-ticket prices, the likelihood of cancellations, and that plans are made so far in advance, traditional lenders and banks won’t work with them.
When you are applying for a travel merchant account, make sure you are able to tell a provider how you plan to keep chargeback ratios low. By being pro-active in identifying weaknesses and explaining how you plan to correct a problem if it arises, you will make a positive impression on a payment solution provider.
In Conclusion
Simplicity is the key to cross-border payments. A travel merchant account makes taking global payments easy. Knowing the rules, your risk level, and what your organization needs puts your organization on the road to success.
When banks won’t help, your best option is to turn to a high-risk merchant service provider, like eMerchantBroker.com (EMB), to obtain a travel merchant account.
As a provider that specializes in high-risk merchant accounts, such as those in the travel industry, it tailors payment processing solutions to meet every merchant’s needs. Also, it offers fraud filters and chargeback mitigation tools to reduce chargebacks.