How Global Payment Processing Works The seeds of global payment processing really began over a century ago when customers and merchants were able to exchange payment for merchandise by credit coins and charge plates as a replacement for currency. Even centuries before that, letters of credit were carried by travelers in order to conduct financial transactions great distances from home where their banking partners knew and trusted them. In the 1960s when payment for products and services by bank-issued plastic credit cards were enabled by nationally distributed payment processing centers, and then international processing centers, another 40 years passed as that industry grew and flourished before online global payment processing, typically originated by a credit card purchase, began its current history early in the twenty-first century. Today, global payment processing is a relatively simple operation typically employed by merchants selling products and services to consumers online, or from a brick-and-mortar storefront. If consumers are already purchasing using the currency of the nation they are in at the time, the payment processing is as simple as it has always been. However, in the case when consumers are in countries other than their own, using another currency than used locally, merchants can take advantage of a global payment processing service, to which they subscribe, to accept the currency of payment, knowing that the processing center to which they subscribe can process the payment. There are obvious advantages to the consumers. They do not need the formerly cumbersome necessity of exchanging their cash currency to a local currency in order to trade for products and services. However, the features and benefits available to merchants who subscribe to a global payment processing service are of even greater advantage, not only because they secure a competitive edge with consumers against competitors who still require their customers to engage older payment processing technology, including cash exchange by a bank or exchange center. For merchants, a global payment processing service is easily obtained and managed. The service takes care of almost all of the processing steps without burdening the merchant with issues such as proper calculation of applicable taxes, fees and tariffs. If the merchant has Internet access at their location, they have access to a global payment processing service. The service guards merchants against volatile exchange rate fluctuation by allowing forward exchange coverage online. The service is secure for both consumers and merchants by continually updating the most aggressive fraud prevention technology available. Sales transactions are fast and reliable, initiated as soon as payment from a consumer is registered, virtually regardless of the currency they use. Up to 170 countries' currencies
are currently transacted without delay. The system is not tied to any particular product or service; all industries are equally benefited by global payment processing. Supplementary services are available to merchants in customized reporting of transactions, tax, fee and tariff calculations and reporting, exchange rate activity in any currency, and other services such as marketing analysis and trends in global payment processing.
Published on Dec 22, 2013
The seeds of global payment processing really began over a century ago when customers and merchants were able to exchange payment for mercha...