Carry out international transactions it’s not that easy for entrepreneurs, partly because the information that exists about it is not enough and is usually full of technicalities that can confuse people.
However, financial technology has presented advances that have allowed people to take their products to other parts of the world through the internet and close sales, either with end customers or suppliers. These innovations converge a whole system of platforms that offer solutions when carrying out international transactions.
But before implementing international payment technologies, it is worth knowing some terms that Rapyd, a fintech Israeli that facilitates the integration between companies and consumers, has shared with TechSmart.
Business account: It is a type of bank account established between the merchant and the payment processing company, it is created with the objective of managing the transactions made with credit and debit cards.
Credit card terminals: You could say that this is the typical dataphone, so it is an element that becomes important to have when the business also carries out physical transactions, whether at fairs, commercial premises or home deliveries.
To choose this device, the entrepreneur must check that it accepts Europay MasterCard/Visa payments or also known as EMV and also supports the magnetic stripe.
POS systems: Its acronym stands for Point of Sale Terminals and if the business is going to have a physical establishment, it is essential to have one of these systems, because in addition to managing payments, it also allows the use of data to monitor sales, track inventory , carry out marketing activities and loyalty programs, the latter being very important, since this way promotions can be offered to customers.
Payment Service Provider or PSP: This is the company that is responsible for integrating online payment methods into the virtual stores of entrepreneurs. A good provider of this type of service should offer the possibility of making credit card, debit card, payment card and electronic wallet transactions without having to create a merchant account.
E-commerce platforms: These sites are very useful for both entrepreneurs and buyers, offering an engaging online experience through the provision of tools to manage inventory, marketing plan and payments.
On the other hand, this type of international transaction involves the entrepreneur carrying out a series of steps to send or receive the funds to other accounts, therefore, it is always pertinent to know each of the parties in this process and the function they fulfill. These are some of the actors involved in the processes mentioned
issuing bank: It is the financial entity where the buyer has the account with which he is going to make the payment for the product or service, therefore when the bank receives the notification of the transaction that has been carried out, it enters to verify that the creditor has the funds necessary to authorize or deny the transfer of money.
Receiving bank: This is the opposite case to the previous one, since it is where the merchant has an account created in order to receive the money from the sales that have been made in his virtual store, after this he can withdraw the money or transfer it to other accounts.
business service provider: This figure only applies to physical businesses, since it is the entity in charge of providing a commercial account to the company so that it can accept payment methods other than cash.
Payment gateway provider: It is the service that allows data to be transferred between the dataphone or the virtual store and the parties involved, that is, the buyer and the merchant. Although most debit and credit cards are Visa and/or Mastercard, there may be exceptions in which only national payments are allowed.
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