International Credit Card Processing Issues

Posted by Nick Niesen on October 29th, 2010

Deferred Processing

Deferred processing is the less expensive alternative to real time credit card processing. It is simpler to implement than real time processing, and it doesn?t require a secure gateway. The lack of a secure gateway in your payment processing system doesn?t mean that it is unsafe. Most customers won?t know whether you have real time or deferred card processing.

Deferred processing enables you to process credit cards manually. This processing method lacks automation. It is a slow manual process. Processing dozens of orders on a credit card terminal is mundane task. In addition to the added labor, potential for errors is high. It is easy to mistype a number that could result in a failed transaction.

How does deferred payment processing work?

·Customer adds product to shopping cart.

·The connection enters secure mode, as the customer is required to complete payment information. The customer?s browser encrypts the data between the web server and the customer computer.

·Customer will complete order and leave vendor site.

·The vendor at a later time processes orders through credit card terminal.

·The terminal provides feedback to vendor whether or not the transaction failed or succeeded.

International Credit Card Processing

For security and fraud protective reasons, do not accept international credit cards. Offer payment alternatives such as international money orders, or wire transfers. Accepting international cards is risky business for several reasons. Most importantly, you will not be able to perform address verification. If a foreign customer pays with a stolen credit card, you will be stuck with the bill. In addition to the charge back, the bank will charge you additional fees. To add insult to injury, you?ll have to pay a charge back fee. On top of everything, you will be stuck with the shipping charges.

International Orders

Accepting international orders can complicate your business immensely. Primarily, there is the above described payment concern. Second, shipping internationally is much more expensive than shipping within the U.S. International orders require a lot of extra work that will increase your expenses and reduce your profit margins.