When it comes to global e-commerce, there’s no reason for US merchants to be limited to North American customers. As the saying goes, there’s a whole world out there! Global e-commerce is growing by leaps and bounds every year. In 2013, sales grew 17% YOY and hit $1.2 trillion in 2013. Cross-border e-commerce sales reached $300 billion, or 25% of global e-commerce flow, and is growing in excess of 45% YOY.
For many online merchants, the main challenge is how to reach global customers with minimum fees and headaches and maximum ROI.
Today’s merchants expect a great deal from their payment providers. This usually translates into a number of key demands. Among them:
- A single platform for regional and global sales
- Business-friendly perks such as:
- Low transaction costs
- Few or no correspondent/receiving bank charges
- Reduced decline rates
- Increased authorization rates
- Multiple payment methods
- Expertise in regional preferences, compliance rules and legislation
This is a tall order for the average payment provider and requires competence in a number of different areas. However, from our experience, these elements are crucial to successful cross-border e-commerce. It’s a complicated puzzle, but without all of the pieces—platform, cost-control, flexibility and expertise—reaching global customers can be hit or miss.
Case Study: TransNational Bankcard
One great example of this is our partner, TransNational Bankcard. The company is a Chicago-based, privately-held payments company with a large merchant portfolio primarily focused on SMBs. The company’s vertical focus is retail, service, hospitality and medical.
TransNational’s challenge to us was to provide their e-commerce merchants with comprehensive financial management services to enable merchant client growth (particularly ISVs). The company was looking for both expertise and management of all payment-related issues for their clients.
The solution: Credorax’s global acquiring platform, with features that allow our partners to benefit from:
- Comprehensive reporting capabilities
- Lower bank and exchange fees
- Reduced chargeback rates
- “Client-centric” approach
So, what was the company’s response? According to Jae Haas, TransNational Bankcard President: “Credorax realizes that our firm’s success can and should be replicated in other global markets. We are particularly impressed with their ability to use creative reasoning to help eliminate barriers while maintaining appropriate levels of compliance in European markets.”
We are dedicated to providing all of our clients with this kind of service. These kinds of client responses make all of our hard work worth it!
If you are interested in hearing more about entering the European e-commerce market, Rod Kazfey, VP of Sales at Credorax and Justin Brown, VP Products at TransNational Bankcard will be hosting a seminar on the topic at TRANSACT15, taking place in San Francisco on March 31, between 1:45-2:45 pm. If you’re at the conference, be sure to catch the seminar!