Get Paid: Multiple Channels Add Power to International Campaign
Direct debit is a very important payment option for customers in Europe. Rather than enclosing a check with order, customers simply fill in an authorization to debit their bank account directly. This payment option generally can be used for mail order or e-commerce campaigns, and has the advantage of being easy to offer and clear. Direct debit files can be submitted to the banks for authorization in much the same way as batches of credit card information.
Clearing International Payments
It is important to clear international payments through the appropriate channels. It is not possible to process foreign currency credit card transactions through a U.S. merchant account without a currency conversion shown on the cardholder’s statement. This means the published price and the end price on the customer’s statement will not be the same, which could result in chargebacks. Similarly, it is not possible for companies to accept foreign, local-currency giro credits or originate local-currency direct debits using their U.S. facilities.
For companies that are heavily committed to a particular market and have offices and local staff to service that particular market, investing time and energy in developing a local banking infrastructure makes sense. In many countries banks will require local incorporation, security deposits and extensive information about a company before they will provide merchant accounts for card processing, direct debit or high-volume check clearance.
Alternatively, multicurrency payments can be cleared through an international payment processing company. This is a convenient option for companies testing new markets, new payment methods, or that are targeting several markets and want to maintain centralized control over payment receipts. International payment processing companies have access to a worldwide network of banking contacts for clearance of all major currencies and all popular forms of payment. They are able to establish foreign currency merchant accounts for card processing in their clients’ names.