In today’s global marketplace, businesses must adapt to accept multiple currencies, including US dollars, to cater to an international customer base. Understanding key terms related to currency transactions can help streamline this process. The presentment currency is the currency used by customers during payment, while the settlement currency is the currency accepted by the receiving account.
Several payment systems have emerged to facilitate these transactions.
GoCardless allows businesses to process payments flexibly and integrates with over 350 systems, providing real exchange rates through Wise. It charges 2% plus 20p per transaction.
Airwallex offers a Global Account that enables businesses to receive foreign payments as if local and has no fees, with a low conversion rate of 0.5%.
Braintree by PayPal supports payments through various platforms like Venmo and Google Pay, with a tiered fee structure of 1.9% plus additional charges for multi-currency transactions.
Wise for Business claims to be significantly cheaper than traditional payment services, with minimal receiving fees, ideal for freelancers and smaller enterprises.
Stripe supports over 135 currencies and focuses on minimal fees, providing an efficient option for online businesses.
Payoneer allows easy currency management and is beneficial for freelancers and service providers due to its local receiving accounts.
Each system has its strengths and weaknesses, making it essential for businesses to evaluate their needs and choose a provider that aligns with their transaction volume and customer preferences.
Why this story matters:
- Understanding these payment systems is crucial for businesses aiming to reach international customers.
Key takeaway:
- Multiple payment systems offer diverse options to accommodate global transactions, each with distinct fees and features.
Opposing viewpoint:
- Some businesses may prefer traditional banking methods due to concerns over security and transaction fees associated with electronic payment systems.
