Do I Need An International Merchant Account?
I’m a merchant, but I don’t understand whether or not I need international merchant account.
What’s the deal?
The internet boom and global expansion of e-commerce has brought on the need for international merchant processing. While it’s not for every merchant, it makes sense for some who do wind up selling globally.
Let’s say for example you own a website that sells t-shirts online. If you are located in the United States and primarily ship only to the United States, there is no need for an international merchant account. However, if you were to sell to both the United States and Europe as your primary market places, it may be a good idea to apply for an international merchant account.
First things first – let’s talk currency. Some domestic merchant processors simply cannot handle foreign currency conversions. So, if you have a customer from Italy that wants to purchase a t-shirt on his or her credit card, the transaction will go through in the local currency – in this case Euros. However, if you have an international merchant account, you can settle the transactions in any currency you wish – preferably US dollars in this instance because you are a US merchant.
Our Choice Merchant Solutions International Merchant Account offers the ability to settle in over 180 currencies, depending on where you are located and what type of currency you prefer.
The second thing to consider is the following: If your current merchant processor is not set up for international transactions and you start receiving foreign transactions, they may become suspect and either suspend or terminate your account. Getting an international specific processor can help mitigate these issues.
But wait – there’s more…
In certain cases, depending on the merchant’s industry type, it may be easier to find an international solution that fits the bill. Domestic processors usually handle only a limited number of industry types that are considered high risk, while international merchant processors have a broader appetite and can accommodate a wider variety based on risk level and legality in the international space.
Where do I sign up?
Go ahead and take a look at our international merchant account page as well as the requirements for an international merchant account. You can apply by filling out the form at the bottom of either page!