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.