Cross-border ecommerce refers to online sales between people/businesses in different countries and is crucial for brands looking to expand sales into the global market. Accepting cross-border payments can be complicated, however. This is because there are a number of different local payment methods used in different countries, along with differing regulations and technologies – and not all of them work together.
What Is B2C Cross-Border eCommerce?
B2C cross-border ecommerce refers to online sales made directly to customers. It can be problematic when you take into account the wide range of preferred payment methods from person to person and country to country.
Learn how accepting alternative payment methods can improve your cross-border results.
What Is B2B cross-border eCommerce?
What are cross-border transaction fees?
Cross-border transaction fees are charged to merchants making cross-border sales. While they generally apply to online transactions where the customer is in a different country to the seller, the charge is for payments where the issuing bank is in a different country to the merchant’s processing bank, so a fee may apply for in-person sales as well. For example, if the cardholder is on vacation in another country and makes a credit card payment. Set by the card issuers, they’re passed on to the merchant by the payment processing provider, and the percentage charged varies depending on the card network.
Cross-border transaction fees are an inevitable cost of expanding your business globally, but the right payment processing solution can help to reduce these costs.