PSPs are Adapting to Cross-Border E-Commerce

This month, Credorax has been spotlighted by PaymentEye to share its wisdom on cross-border ecommerce’s effect on PSPs. Below are a few important takeaways from the article we thought you would enjoy. To read the full article, visit: www.paymenteye.com.

CRX_blog_cross-border-europe

Retail Sales, All-Time HighPicture1

Retail sales worldwide are at an all-time high. According to data from eMarketer, total retail sales hit $22 trillion worldwide in 2016, up 6% over 2015. That figure is estimated to exceed $27 trillion by 2020 (excluding travel, event ticket and restaurant sales).

Retail sales are growing too – although the growth rate is predicted to peak at 6.3% in 2017, trending downwards towards the end of the 2010s, the market is expected to deliver strong numbers over the next five years.

Ecommerce Makes up Majority of Growth

Although overall growtPicture2h is slowing in line with the rest of the retail market, ecommerce is predicted to make up an increasingly large proportion of total retail sales.

Accounting for 7.4% of that total in 2015, retail ecommerce sales across all devices will reach $2.3 trillion worldwide in 2017, rising to a whopping $4 trillion by 2020 (representing 14.6% of total retail sales).

This should come as no surprise, as over half of all internet users worldwide – more than 24 percent of the global population – made at least one purchase via a digital channel in 2015.

Cross-Border, Heart of Ecommerce Growth

A growing proportion of this trade is cross-border. As tech advances make it easier for merchants to market to customers beyond their domestic borders, the pressure for merchant acquirers to deliver fast, secure and cost-efficient cross-border payments is higher than ever.

DHL Express reports cross-border sales volumes are predicted to increase at an annual average rate of 25% – from $300 billion to $900 billion – between 2015 and 2020.

PSPs Need to Support Cross-Border for Merchants

PSPs should be able to service the cross-border needs of their merchants if they are to stay competitive. Merchants now expect to pay least-cost routing and local fees for cross-border transactions at minimum. PSPs must have in-depth knowledge of regional preferences and compliance regulations. In addition, merchants expect the lowest costs and transparent pricing models as standard. While an acquirer can’t solve every cross-border issue that arises, selecting the right one can definitely enable their cross-border goals.

Acquirer Checklist: The Essentials Every PSP Should Look For

  • Cross-border reliability: seamless connection of the PSP’s merchants to cross-border
  • Knowledge of cross-border commerce: an understanding of regional preferences, rules, and new regulations.
  • Currency capability: ability to handle multiple currencies and provide the lowest domestic rates for cross-border e- and m-commerce transactions.
  • Multi-device: full cross-channel international sales, enabling merchants to connect and sell to customers on every type of device – especially mobile.
  • Risk protection: ecommerce risk and fraud should be safeguarded against risks, and the latest threats to mobile commerce understood.
  • Flexibility: support a wide range of payment methods and ability to deliver an updated service in response to new market trends.

The cross-border ecommerce market provides a unique opportunity for PSPs to move beyond their traditional roles by providing cross-border options for their merchants, but partnering with the right merchant acquirer must be the first step.

To learn more about selecting the right merchant acquirer, download PSPs: Why Does Your Choice of Acquirer Determine Future Success at Paymenteye.com here.

 

5 Pieces of Advice for Merchant Onboarding Application

CRX_blog_5tips

To date, the merchant onboarding process to an acquirer has been time-consuming, inflexible and costly. The biggest cause of delays and frustration is the overwhelming amount paperwork that needs to be completed.

As an acquirer dedicated to customer advocacy and operational efficiency, we decided to share with you, our merchants and partners, how putting together a merchant application properly for the acquiring bank can save time and headaches. The result should be an application that is successfully processed and approved by acquirer in a timely manner.

As a merchant, you need to know that it is critical for your business to follow local laws and regulations. It is highly recommended that you include all business-related licenses as a part of your application. Note that some types of products are subject to more regulation than others, therefore the set of documents might vary by country and industry.

No less important is to ensure that you include all the detailed information about your business to further speed up the application. For example, with regards to the company name, fill in the full legal name, including the type of business entity it is (e.g., a limited company – Ltd.).

With the above in mind, here are our top five tips for filing in an approval-winning merchant onboarding application:

TIP 1: Be clear about your business model.
Provide all the relevant up-to-date information up front, to avoid assumptions and requests for additional information from the acquirer. If your website is under construction or still in beta, let the acquiring bank have access to your business plan and/or a beta version of your website.

TIP 2: Emphasize risk mitigation procedures and policies.
Present your internal AML and fraud policies together with other risk mitigation procedures to the acquiring bank. Merchants having proper risk processes in place score more points with the acquirer and might be considered for lower collateral requirements.

TIP 3: Highlight cardholder and affiliate KYC checks.
Existing cardholder and KYC check procedures should be highlighted at the onboarding stage. Sound KYC checks on both cardholders and affiliates leave less room for fraudulent transactions.

TIP 4: Present transaction monitoring solutions.
There are third-party services that keep tabs on transactions for any issues, analyze transactions to determine risk exposure, and manage fraud and chargebacks in relation to the acquirer and card scheme thresholds. Great merchants account for these potential issues and have plans in place to manage them.

TIP 5: Provide clear explanation of service fulfillment period.
Merchants that offer more than one service may have more than one fulfillment period and anticipate a division in expected volumes. A detailed explanation of these fulfillment periods to the acquiring bank will help ease the onboarding process.

Let us know if you have any other tips on how to speed up this process. Contact us at grow@credorax.com

Keys to Cross-Border Success for Merchants

crx_blog-ecom-mechants_lrg_v-1-1

Are you watching the world grow more connected before your eyes? It’s only natural that online merchants see this growth as an opportunity. Increasingly, it is becoming vitally important that online merchants be fully prepared to sell not only “locally” but also to reach into cross-border commerce. PYMNTS.com has been studying factors that separate the most successful cross-border merchants from the rest of the pack.  They recently published their quarterly index, which not only shares recent news but also compares 2016 to previous years.

Continue Reading

Management Values: What Drives Us?

crx_managment_infografix_blog_v1-3

Get to know our people through their management values, at a glance!

At Credorax, our core values drive our daily work.  As a technology company, innovation, ambition and exacting execution keep us ahead of the pack. But equally important are the “old-fashioned” values of integrity and communication, which have allowed us to build teams that are imbued with trust and ready to do our best for every client, big or small.

Continue Reading

Empowering Payment Processing with Smart Technology

crx_epower_infografix_blog_v1-0

Gearing up for Money2020 Vegas, we decided to publish information about our tools and services in an easy-to-read format, so that our current and future customers can readily understand what we do and why it is so important for the borderless economy. E-commerce is growing rapidly, and in 2015 cross-border e-commerce represented about one-fifth ($304 billion) of all transactions! It is vital for merchants to have a seamless and streamlined acquiring bank they can trust to provide superior security, functionality and customer service.Continue Reading

Advancements in Tech Signal a Boom for Cross-Border Payments

CRX_Blog_Cross.Paym.Tech_290616_lrg_v.1.0

As a FinTech company, we are always happy to see market support for the solutions we provide. We are working to make cross-border payments simple, accessible, quick and safe. The growth of technology and its support of global e-commerce has been fantastic, and we believe that digital payments are a great equalizer. It’s now possible for small businesses to compete in the online space among much larger outfits, capitalizing on the use of digital payments that range from credit cards to e-wallet.

Continue Reading

Are Payments Services the Next Logical Step for Supply Chain Experts?

CRX_Blog_Supply-Chain_lrg_v.1

Supply chain and logistics companies in today’s market already maintain expertise in several areas, such as logistics, delivery, invoicing and digital services. Recent industry surveys indicate that adding and enhancing e-commerce or payments services as part of the end-to-end solution puzzle, reaching out to these companies’ well-established customer bases, could aid an increasing pinch at the margins of supply chain services.

Continue Reading

What PSPs can learn from the property market

Tony Craddock, Director General of the Emerging Payments Association, Comments on Credorax’s Latest Whitepaper, “PSPs Why Does Your Choice of Acquirer Determine Your Future Success?”

CRX_Blog_Guest_01.Tony_lrg_v.2.0

Payment Service Providers (PSP) servicing global e-commerce merchants are often stuck between the devil and the deep blue sea.

Their lovely merchants are crying out for more, while internal compliance and commercial teams are screaming for them to do less. And, circling ominously, their shark-like competitors are promising merchants heaven and earth at every turn.

It’s not a great place to be.

Continue Reading

Top 5 Smart Acquiring Blog Posts of 2015

CRX_Blog_2015.Top5_lrg

 

Christmas has come and gone, and New Year’s is fast approaching. Last week, in our Happy Holidays post, we took a look at our major achievements over the last year. This week we bring you the top five blog posts of the year.Continue Reading

Digital Disruption Reshapes Global Payments Industry

CRX_blog_Digital Disruptio_Lrg

McKinsey & Company published a new report in November 2015 that highlights the key role digital disruption is playing in redefining global payments. Entitled Global Payments 2015: A Healthy Industry Confronts Disruption, the report examines how certain inefficiencies in the payments landscape are actually creating opportunities and driving innovation.Continue Reading