WHAT IS CROSS - BORDER PAYMENTS ?

CROSS- BORDER PAYMENTS 

Ecommerce is about global market where transactions invlove parties across the world. It is easier today than ever to expand your business into a new market, even to expand internationally. Thus this global market is requiring a global payment method. This is where Cross Border Payment is coming handy. 

WHAT IS CROSS BORDER PAYMENT 

Cross Border Payment is another word for International Transaction. As the term explains it is a transaction where the seller or merchant and the customer are based in different countries. 

METHODS OF CROSS BORDER PAYMENT 

Cross-border payments can be made in several different ways. Bank transfers, credit card payments and Alternative Payment Methods (APMs) are the most common ways of transferring funds across borders. There is also the option to use Dynamic Currency Conversion (DCC) 

CROSS BORDER PAYMENT MODEL 

HOW LONG DOES CROSS-BORDER PAYMENT TAKE?

International payments will take longer timeframe to clear than the one made locally. This type of payment normally takes about two to five business days to go through sucessfully. The time consume is depend on what type of payment method chosen by the customer and whether there is a intermediary banks invlove in the transfer of the funds. 

CURRENCY RATE AND FEE?

Regarding currency and fee, it is also depends on the payment method that you choose since every type of payment have set their own currency rate and fee. 

ISSUES WITH CROSS-BORDER PAYMENT

The major issue is that not all merchant accept Cross-border Payment. Mlveda when being asked about whether US  merchant accept payments coming from overseas, their answer was: in most cases, they do not, the reason is because the processing fees are high with huge risk of fraud and chargebacks.