How a PSP or Acquirer Can Organize Multi-currency Payment Processing
1 August, 2023 3 min read
- What is multi-currency functionality, and who may benefit from it
- Challenges in organizing multi-currency payment processing
- How Boxopay can help
Table of contents:
What is multi-currency functionality, and who may benefit from it
In today’s interconnected global business landscape, the capability to process payments in various currencies, known as multi-currency functionality, has become an indispensable asset. This feature proves particularly valuable for businesses with an international reach, offering significant advantages to enterprises like eCommerce platforms, global retail brands, and those catering to an international clientele.
However, for national Payment Service Providers (PSPs) or acquirers primarily focused on domestic transactions, the necessity of multi-currency capabilities may not be as pronounced unless international transactions are part of their operations.
Challenges in organizing multi-currency payment processing
The process of organizing multi-currency payment processing comes with its fair share of challenges that businesses must navigate.
Firstly, it’s essential to gather exchange rate tables from various card schemes, but unfortunately, not all currency pairs have readily available rates, which can make things a bit tricky.
Secondly, the settlement of transactions may happen at unpublished rates, introducing an element of unpredictability during the transaction process. This lack of transparency can create uncertainties for both businesses and customers alike.
Adding to the complexity, some currencies are known for their high volatility, making them prone to rapid and unexpected fluctuations in exchange rates. This inherent risk can impact the final amount received by businesses, leading to potential losses or gains based on market movements.
Lastly, currencies with different exponents, such as those with decimals or fractions, demand the utmost precision during processing. Even the slightest miscalculation can result in significant discrepancies, potentially affecting the accuracy of financial records and causing complications for businesses.
Navigating these challenges effectively requires robust systems and careful attention to detail to ensure smooth, reliable, and accurate multi-currency payment processing.
How Boxopay can help
Each system addresses these tasks differently, as there’s no single definitive solution for the mentioned challenges.
With an unwavering sense of confidence, we have meticulously crafted our approach to tackling these tasks, centering it around the paramount goal of maximizing flexibility.
Through this deliberate choice, the Boxopay Payment Gateway has been engineered to masterly adapt and cater to an extensive array of use cases and diverse business requirements. Our commitment to versatility ensures that our white-label gateway remains responsive and effective in meeting the dynamic demands of the ever-evolving landscape.
Boxopay offers a comprehensive solution to the challenges above.
- Our system can load exchange rates from various sources and integrate new ones easily, ensuring flexibility and accuracy.
- It supports currencies with different exponents, guaranteeing precise transaction calculations.
- With the Boxopay white-label gateway, merchants can pre-calculate their payout at their preferred rate, ensuring transparency and predictability. We also allow custom markups for different merchants if needed.
- Most importantly, Boxopay enables payout to merchants in any currency, which is crucial for businesses dealing with multi-currency transactions globally.
We aim to simplify and streamline payment processing, making it easier for PSPs, acquirers, and merchants to conduct international transactions with confidence. So if you are looking for payment software with multi-currency functionality – we got you covered at Boxopay. We have the perfect payment software solution for you, offering seamless multi-currency functionality and extensive expertise on how to seamlessly integrate it into your business processes.