Best practice account set up for international credit card processing
Does your business sell products internationally? Are you looking to establish a solution that is compliant with association regulations and sustainable?
Visa / Master Card association regulations state that a business should have only one Merchant ID (MID) per product line. However, there are exceptions to this rule, a merchant is permitted to have multiple accounts for a product line if the intention is to acquire greater volume limits. Multiple accounts are also permitted to route international transactions to an appropriate account for processing. NOTE: It is strictly prohibited for a merchant to acquire multiple merchant accounts in order to spread charge back volume and occurrence.
I order to achieve the best possible rate for processing international credit card transactions, it is important to route the transaction to a specific account for processing. This is achieved through the set up of multiple merchant accounts in addition to deployment of software that determines the IP address of the computer initiating the order. Once the origination of the order is determined the transaction can be routed to the appropriate merchant account for processing.
All United Stated originated sales should be routed to a US based merchant account. In order to establish a US based merchant account the requirements are as follows:
- Incorporation in the United States
- United States Bank Account
- United States based credit history
- United States identification
With a US based merchant account you will have a 5% - 10% limit on international transactions. There for any non-US originated sales need to be routed to an international or off-shore merchant account for processing.
International merchant accounts can be set up in numerous countries. Most merchant account providers offering international / off-shore merchant accounts will handle the entire account set up. Set up typically requires incorporation in the selected country as well as establishment of a domestic bank account. Again, the incorporation and bank account set up are offered as a service of the merchant account provider. Once complete, all international transactions (with the exception of the US based transactions if you are able to establish a US based account) should be routed to this account.
Lastly, all domestically originated transactions (relative to the businesses home country) should be routed domestically.
This merchant account solution set up ensures your international sales are routed to the account where you receive the best possible rate for processing.
For more information pertaining to merchant account set up for international sale please contact us at (800)917-8026.