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Multi-Currency Payment Processing: Everything You Need To Know

Different types of currency notes

Ongoing technological growth is opening new doors for the eCommerce industry. Digital payments, artificial intelligence, machine learning, multi-currency cards, and real-time cross-border payments are some of the dominant card and payment trends of recent years.

The biggest trend, though, is that the popularity of electronic payments seems to be growing exponentially every year, and multi-currency eCommerce merchants are encountering multiple payment challenges.

If you plan to expand your business into the international market, it’s important to understand why multi-currency payments are useful and how to choose a multi-currency payment gateway that best suits you.

How Do Multi-Currency Payments Work?

Multi-currency payment processing allows users to pay in their local currency, for example, EUR for Europe, USD for the USA, and GBP for the UK.

There’s a lot going on behind the scenes to facilitate those conversions and transactions, though. So, here’s a quick breakdown and example of the multi-currency transaction process:

  • Currency Selection: A customer from the US visits a UK merchant’s website and selects the US Dollar (USD) from a list of currency options.
  • Price Adjustment: Pricing on the website then changes from GBP to USD, reflecting the customer’s selection.
  • Payment Processing: The customer completes their purchase on the website by paying in USD.
  • Currency Conversion: The UK merchant receives the payment in GBP after the conversion from USD.

While it might seem simple to you and your customers, this seamless process is powered by your payment provider and ensures that the customer can shop in their preferred currency while the merchant receives payment in their own local currency.

In essence, a multi-currency payment gateway is more than just a bank account or financial tool—it’s the backbone of any international business.

A globe with different currencies areound it connecting and some money flying

Why Should You Even Offer  Multiple Currencies, Though?

Let’s take a step back. Perhaps you’re unsure why you should even offer multiple currencies (despite us already mentioning a few reasons above, but hey, we get it—sometimes you need a bit more convincing).

In a nutshell, accepting multiple currencies offers significant benefits for both you and your customers, enhancing the overall shopping experience and boosting sales.

Here are some key advantages.

1. Fewer Chargebacks

One of the primary advantages of multi-currency payment processing is the reduction in chargebacks resulting from cross-currency pricing disputes.

When customers make purchases in their local currency, it eliminates confusion over exchange rates and pricing discrepancies, thereby reducing the likelihood of chargeback applications.

This is particularly important for high-risk merchants who often deal with higher chargeback rates in general and don’t want the added headache of more.

2. Improved Customer Experience

Customers appreciate it when the checkout language and currency are adapted to their location. This localization reduces the possibility of cart abandonment as customers find it easier and more convenient to complete their purchases.

Our tip tip here? Go a step further and offer a multilingual checkout design, too. It can save customers time and effort, leading to higher satisfaction rates and repeat business.

3. Increased Sales and Competitiveness

Offering multi-currency payments can drive more sales, make your business more competitive, and attract opportunities for international partnerships.

By accepting payments in multiple currencies, your business becomes more visible and appealing to an international audience. This expanded reach can lead to significant growth and diversification of your customer base.

4. Enhanced Trust and Credibility

Finally (and perhaps most importantly, depending on your target audience), when customers see that you offer pricing in their local currency, it builds trust and credibility.

They feel more comfortable making purchases without worrying about hidden fees or unfavorable exchange rates. This trust can lead to increased customer loyalty and positive word-of-mouth referrals, as long as you manage other aspects of your business, such as customer retention and marketing.

While it's important to work with the right merchant services provider to reduce issues, you also need to be proactive about how you're managing risk in your day-to-day operations. Merchants should make sure they're not cutting corners or leading to non-compliance. Keep your policies up to date, monitor your industry's regulations, etc.

Dennis Pedersen FastoPayments

Setting Up Multi-Currency Processing

Setting up multi-currency processing involves several steps to ensure that your payment system meets the needs of your business and your customers. Here are the key criteria to consider.

Required Processing Currencies

First, we suggest identifying the currencies in which you need to process payments. Ensure that the payment processor you choose accepts these currencies and offers local support services.

This is especially important for high-risk merchants, as not all processors may support the specific currencies you might need.

Settlement Currency Preferences

Ask potential payment processors about their settlement currencies to ensure that funds arrive in your merchant bank account in the desired currency.

Customer Location Considerations

Understand where your customers are located and tailor your payment checkout process accordingly.

Make sure that the payment checkout is automatically displayed in each respective language and currency so customers don’t have to translate and figure out exchange rates themselves.

Additionally, research the most popular payment methods in each country you’re targeting and confirm that they’re definitely included in your payment provider’s list of supported countries.

Integration and Compatibility

Ensure the multi-currency payment gateway you choose can easily integrate with your existing eCommerce platform.

Look for easy-to-use plugins and APIs that facilitate smooth integration and provide a hassle-free checkout experience for your customers.

Security and Compliance

Choose a payment processor that offers robust security features, such as data encryption, fraud detection, and PCI DSS compliance.

This is an important feature that will help you protect sensitive customer information and reduce the risk of fraudulent transactions.

Transparent Pricing and Fees

We see so many clients overlook this, but you should work to understand the payment processor’s fee structure before signing anything! Look for competitive pricing plans with transparent fees so you know exactly what costs are involved.

Pay close attention to any additional charges that may apply to your transactions or weird monthly fees the payment processor can’t seem to explain or justify.

Reliable Customer Support

Choose a payment processor that offers reliable customer support, preferably 24/7 (like FastoPayments).

Access to professional, qualified support will ensure you can fix any issues or address any questions as quickly as possible, minimizing disruptions to your business operations.

A broker in a rope trying to balance with money in his hand

Partner with FastoPayments for Multi-Currency Payment Gateway Services

It’s impossible to accept multiple currencies without establishing a relationship with a reliable payment processing company.

Overall, your payment management framework should help you minimize rejected transactions, reduce customer frustration and dissatisfaction, lower costs, and mitigate problems like holding foreign exchange.

If you’re looking for high-quality payment gateway services that can help you with all of that and more, partner with FastoPayments.

Get a free, no-obligation quote for high-risk merchant accounts and payment processing services here. We’ll review your business information and get back to you ASAP.

High-quality payment gateway services for high-risk merchants

FastoPayments ensures your transactions are secure and simplified. Enjoy real-time monitoring, fraud prevention tools, and chargeback dispute assistance for multi-currency, international payment transactions.
There are years of industry experience behind our high-risk merchant guides and tips...