Payment Processing Abroad
What is Payment Processing?
Payment Processing refers to a commitment of credit card companies towards business owners that they have verified client identification and guarantee their ability to pay for the product or service acquired.
The pervasive use of the internet in every aspect of our lives has led to a huge increase in the number of available electronic commerce channels (you can hardly find a business today without web presence) and subsequently prompted a dramatic rise in online payments (via the company/business website). Many Payment Processing Companies were established during this time to address the market's needs and allow both parties, sellers and buyers, to conduct safe transactions in a speedy and convenient manner.
The 2015 OECD Electronic Commerce Report indicates that share of sales conducted through e-commerce constitutes 17.1% of total revenues in states reporting to the OECD, and 90% of e-commerce are B2B (Business-to-Business) transactions via EDI (Electronic Data Interchange).
Commerce in the global market requires several preliminary stages:
- Identifying a target market – The recommendation is to focus on one central market in order to gain knowledge and experience such as the USA and Europe in general, and particularly central markets such as England and Germany.
- Payment method – Prior to determining the payment methods you intend to offer clients, some preparations are required in order to understand which payment methods are customary and accepted in the chosen target market. Some countries commonly conduct transactions via credit transfers, while others accept international credit cards.
- Technological interface – Payment Processing Companies accepts payments and transfers them to company accounts. In order to create a protected and secure environment capable of supporting online financial transactions, the majority of Payment Processing Companies employ secure payment pages which can be designed to meet individualized company specifications.
- Risk management – Along with the many advantages of online trade, there are also a few disadvantages, primarily lack of familiarization with clients which may lead to cancellations or denials of transactions and even the closing of accounts. To avoid these situations, many Payment Processing Companies use a monitoring system to track risks and "suspicious" transactions.
- Establishing an overseas company – Payment Processing Companies limit their work to companies established in countries where the processing banks are located. As the majority of processing banks are located in Europe, establishing your company in the central areas of Europe will greatly facilitate your business with Payment Processing Companies.
Mellius specializes in finding high-quality, effective and creative solutions to help establish legal entities in over 100 jurisdictions around the globe while coordinating between various types of activities, client profiles, area of activity and additional factors.