• Careers
  • Developers
  • Support
  • Log in
  • en – ca
    • en – ca
    • fr – ca
  • Solutions
      Accept Payments
        • Online

          Accept payments online from anywhere in the world.

        • Mobile

          Run your business from your mobile device.

        • Unified payments

          Deliver a seamless buying experience across every channel, location, and device.

        • Point of sale

          Cloud-based POS to power your entire business.

        • Integrated

          Easily integrate payments with your software.

      Grow Your Business
        • Gift and loyalty

          Reward your customers.

        • Merchant Portal

          The intelligence and tools you need, in the cloud.

        • Business loans

          Fast and affordable to capital.

      Industries
        • Retail
        • Restaurant
        • Healthcare
        • Education
        • Nonprofit
        • Petroleum and c-store
        • Hospitality
        • Transportation
        • Public sector
       
      Issuer solutions

      Consumer and commercial issuer solutions powered by the payment stack for the future.

  • Customers

      Delivering for you

      Whatever your sector, size or ambition, we deliver the commerce solutions you need.

        • Work with us

          For everything you need to run and grow your business, we’re the only partner you need.

        • Small and medium businesses

          Simplified point of sale and software for you–and your customers.

        • Enterprise

          Commerce at scale.

        • Multinationals

          More capability, less complexity with our worldwide footprint.

        • Financial institutions

          The partner of choice for thousands of FIs worldwide.

        • Partners

          Partnership models that meet your customers’ needs.

        • Developers

          Payment SDKs and APIs for quick integration.

  • About

      Global commerce depends on Global Payments

      The world's leading commerce ecosystem working for you.

        • About us

          A team of global experts delivering the future of commerce.

        • Join our team

          Join us and make your mark on the future of commerce.

        • Diversity, Equity and Inclusion

          Empowering commerce for all starts with our inclusive and diverse workforce.

        • Investor relations

          Get the latest company news and earnings reports.

        • Contact us

          Talk to our sales team, request a demo or get technical support.

  • Insights
  • Search

    Popular searches

    • Accept payments
    • Online payments
    • Support

    Quick links

    • Careers
    • Merchant portal
    • Investor relations
Sign up
Contact us /en-ca/modals/signup-homepage
Search
English (Canada)
français (Canada)
  • Solutions
      Solutions
      Accept Payments
      • Online
      • Mobile
      • Unified payments
      • Point of sale
      • Integrated
      Grow Your Business
      • Gift and loyalty
      • Merchant Portal
      • Business loans
      Industries
      • Retail
      • Restaurant
      • Healthcare
      • Education
      • Nonprofit
      • Petroleum and c-store
      • Hospitality
      • Transportation
      • Public sector
       
      Issuer solutions

      Consumer and commercial issuer solutions powered by the payment stack for the future.

  • Customers
      Customers

      Delivering for you

      Whatever your sector, size or ambition, we deliver the commerce solutions you need.

    • Work with us
    • Small and medium businesses
    • Enterprise
    • Multinationals
    • Financial institutions
    • Partners
    • Developers
  • About
      About

      Global commerce depends on Global Payments

      The world's leading commerce ecosystem working for you.

    • About us
    • Join our team
    • Diversity, Equity and Inclusion
    • Investor relations
    • Contact us
  • Insights
    • Careers
    • Developers
    • Support
    • Log in
    Contact us /en-ca/modals/signup-homepage

Popular searches

  • Accept payments
  • Online payments
  • Support

Quick links

  • Careers
  • Merchant portal
  • Investor relations
  1. Innovation that Delivers
  2. Insights
  3. How domestic acquiring helps overcome your cross-border payment challenges

5 minute read

How domestic acquiring helps overcome your cross-border payment challenges

Tuesday, June 28, 2022

5 minute read

As multinational businesses seek to expand into emerging markets, cross-border ecommerce is expected to reach a value of $2.25 trillion by 2026, up from $579 billion in 2019.

What's driving this growth? Increasing globalization of our economy makes it simple for customers to buy what they want–domestically or internationally. At the same time, more and more businesses accept a wide variety of local payment methods, making it easier than ever to pay cross border.

The ease of cross-border shopping means there is a significant growth opportunity for multinationals to enter new markets, attract new customers, and increase revenue. However, selling internationally means you need to rethink how you accept payments. If you're not careful, higher fees and lower authorization rates can impact your ability to profitably compete in new markets, leaving your business on the sidelines instead of across the border.

If you have a presence in countries outside of your home market, consider taking advantage of domestic acquiring to reduce cross-border payment complexity and increase your revenue.

{2E3A9A31-5ADB-4C74-AB10-914A99433406}

The challenges of cross-border payments

Local payments and cross-border payments are treated differently. Here's the difference.

There are two banks for every credit card transaction: your acquiring bank, which requests permission for a card payment, and the customer's card issuing bank that authorizes the payment. When selling locally, these two banks often have pre-established relationships, generating the level of trust required to keep authorization rates high and costs low.

However, with a cross-border transaction, there's a good chance the two banks might not know each other. This means greater scrutiny and higher risk, increasing costs for the merchant. These increased costs come in the form of interchange fees. Different countries, merchant types, and payment methods all impact the risk of the transaction and, therefore, the interchange fee. In general, cross-border interchange fees are higher than fees for domestic transactions. Interchange fees account for the bulk of the total transaction costs, making them critical in controlling your payment processing costs.

But higher costs are just the beginning. Cross-border transactions are also likely to have lower authorization rates if the issuing bank determines that the risk is too high. If the bank doesn't authorize the payment, the transaction is canceled, leaving you with a lost revenue opportunity and an unhappy customer.

How domestic acquiring helps

With domestic acquiring, also known as local acquiring, you can complete a transaction using an acquiring bank in the same country as your customer. This is now considered a domestic transaction, and it creates the local relationship you need to control costs and improve authorization rates.

While you can set up domestic acquiring banking relationships for each country where you operate and sell, this can leave you with dozens of partners and relationships to manage. It also puts you on the hook for staying current with changing payment rules and regulations in each country, which can be challenging to understand if you don't have local market knowledge.

The easiest way to manage payments in multiple markets is to work with a single payment provider who can provide domestic acquiring for you. That's why we deliver a domestic acquiring solution in almost 60 countries globally and local expertise with offices in nearly 40. This gives you a single relationship to manage payment acceptance in your key markets while reducing your interchange fees and improving your authorization rates.

Businesses that sell globally shouldn't overlook the opportunity to maximize authorization rates, reduce costs, and improve the customer experience through a domestic acquiring solution.

Ready to sell smarter around the globe? Learn more about our domestic acquiring solution and download our guide on consumer payment preferences around the world.

Never Miss a Blog

Get the latest insights from Global Payments

Subscribe
{5FF1AA71-EECC-4A47-8BAA-5D9DB1FB1495}

RECOMMENDED FOR YOU

No results found
Subscribe
Share Facebook Twitter LinkedIn
CA / EN
  • Accept payments
  • Grow your business
  • Industries
  • Issuing
  • Customers
  • Insights
  • About us
  • Careers
  • Contact us
  • Investor Relations
  • Notices and Policies
  • Sitemap

Already a customer?

Log in

Connect

  • LinkedIn
  • Twitter
  • Facebook
  • YouTube
{2969328A-0D49-48C8-82E7-DE69D007FBF1}
 

Global Payments Direct, Inc. is a registered ISO of Wells Fargo Bank, N.A., Concord, CA
Global Payments Direct, Inc is a registered ISO of BMO Harris Bank N.A.
© 2023 Global Payments Inc. All rights reserved. Terms of Use Privacy Statement Code of Conduct

  • Open Chat
  • Hi, how can i help?

    Clock icon Our usual reply time: Less than a minute

    Close Chat
  • Close Chat