International payments refer to accepting payments internationally. Nowadays, with the advancement of technology, the ecosystem of online payment has been changed. There are many payment terminals that can help the merchants to operate their business internationally. Well, accepting international payments is a really complicated process. If someone is sending money directly to your bank account from a different country, there will be problems. Receiving international payments is complicated as well as non-profitable. There will be exchange rates, extra charges and many more. Ultimately, you will get less money in your pocket.
However, if you have an online payment gateway, you will not have to face such a problem. An online payment gateway makes the entire international payment process easy and quick. If you are a merchant and want to do business internationally, you must have an online payment gateway. Otherwise, it will be difficult for you to accept credit cards internationally.
How International Payment Works
Well, if you are a businessman and want to receive payment from international customers, you must know the process very well. It will help you to operate your international business flawlessly. It is basically a real-time process and everything happens within a second. We have elaborated the process below in order to give you a concrete idea:
The sender or the customer will initiate the transaction by putting the credit card details and transaction amount. After that, the online payment gateway securely sends all the important information to the merchant processor. The merchant processor will verify the transaction details and send it to the credit card brand or Credit Card Company Such As American Express, Visa, MasterCard and many more. The brand will forward the details to the customer’s credit card issuing bank. The bank will check the available credit. If the customer has available credit, the bank will approve the transaction. After that the bank shares the same information with the credit card network. The network sends the same information to the merchant processor solution.
Well, the online payment gateway will convert the currency and it will credit the amount in your bank account. It might take 1 to 7 business days to credit the amount in your bank account. However, in such a scenario, the merchant has to pay a specific amount to the online payment gateway provider. Yes, the merchant processor handles the entire international payment and therefore, there is a credit card processing fee for each transaction. The merchant has to pay this amount.
Types Of Credit Card Processing Rate
Well, there are different types of credit card processing rates such as flat-rate processing rate, interchange plus processing rate and many more. If you are an online merchant, you must know these rates. Otherwise, you will have a problem while operating your online business.
Flat rate processing pricing structure is very simple and most online payment gateway providers such as PayPal, Stripe offer this structure to the merchant. In such a case, a specific amount will be charged for each international transaction.
On the other side, International Payment Solutions that is a renowned credit card processor offers interchange plus pricing structure. Interchange plus pricing structure is difficult to understand for the new online merchants. Here, the pricing will be different for different transactions. It depends upon the credit card that the customer is using to pay internationally. In the case of interchange plus pricing structure, the merchant will understand the actual credit card processing rate for processing different brands. It maintains the transparency between the merchant and the payment processor.
Things Required To Send Money To An International Bank Account Number
Well, a person can also send money internationally to an individual. In such a case International Bank Account Number or IBAN is required. Along with the IBAN, there are certain things that the sender needs. We have added them below:
The name as well as the address of the bank of the recipient.
The International Bank Account Number of the recipient.
The SWIFT code the bank account of the recipient.
The transfer amount and the currency of the recipient’s country.
The sender has to mention the reason for the transfer.
Advantage Of Online Payment Gateway
There are many advantages of having an online payment gateway in your business. You don’t have to worry about international payment. The payment gateway provider will handle all these things. You can operate your business and deal with international clients without any hesitation. Moreover, it can elevate your business to the next level as you can have more sales. The cash flow in your business will also be enhanced.
Not An IPS Merchant?
By now, you have understood the importance of how international payments work. Now, if you want a payment processor for your business, you must get in touch with International Payment Solutions. It is one of the best payment processors. Moreover, the Company offers efficient payment equipment. So, what are you waiting for? Become a merchant of IPS and start accepting international payments.