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Processing Foreign Credit Cards

Processing foreign transactions can happen in a few ways.

  • Natively where you charge a foreign credit card and the conversion happens on the customers side.

    Ex: The item costs USD $1200 and is paid with an Australian credit card.  The card is processed for USD.  The customer is charged AUD $1546.17 (approximate conversion rate) and USD $1200 is deposited into the Merchant's US bank account
  • You want to sell something in another country at a fixed rate using their currency.

    Ex: The item costs USD $1200 USD.  You pick a price point of AUD $1500 in Australian Dollars.  The customer is charged AUD $1500, then the conversion is done back to USD, so USD $1164.05 (approximate conversion rate) is deposited in the Merchant's US bank account.
  • You want to charge them in a foreign currency and be paid in the foreign currency.  This is usually to keep revenues in the country of origin, and may require a local office. For this you would need to setup a gateway and merchant account in the country or currency that you are selling.  This would allow them to be charged in their currency and deposited in a gateway setup to accept that currency.

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