basic-guide-to-exporting_Latest_eg_main_086196

important to identify and incorporate the prevalent payment mechanisms into theorder-processing component of the website.Credit CardsFor B2C transactions, many overseas customers use credit cards for online purchases;credit cards, however, are not a universally chosen method of online payment. Tooffer credit card payment services, a company must establish a credit card merchantaccount with a bank. The bank will process the transactions in exchange for a fee.Companies should compare the fee structures of banks to determine which wouldwork best for the size and number of transactions expected. The transactions maybe fast, but credit cards carry their own risks. Chargebacks can be very costly foronline exporters. Common chargeback reasons are fraud, dispute over the quality ofmerchandise, nonreceipt of merchandise, or incorrect amount charged to the card. Ifyour company accepts online credit card transactions, you should be knowledgeableabout the credit card issuers and your bank’s policies toward chargebacks and how toavoid them.Account-to-Account TransfersAccount-to-account (A2A) transfers, in which money is transferred electronicallybetween a customer’s and a merchant’s bank, are popular in many countries. A2Atransactions, which occur in real time, offer the additional advantage of reducing thepotential for fraud and chargebacks. Unfortunately, because A2A transactions are rarein the United States, few U.S. banks offer this service.Person-to-Person TransfersMany companies offer person-to-person (P2P) transfers, in which funds are sentelectronically to a third party, which in turn deposits the funds in the merchant’saccount. One P2P service provider that conducts cross-border transactions isPayPal. PayPal lets anyone with an e-mail address use a credit card or bank accountto securely send and receive online payments. PayPal will also conduct currencyexchange, allowing the customer and the merchant to operate in their preferredcurrency. Google Wallet offers similar service. Other P2P providers, such as WesternUnion’s BidPay, accept a credit card payment from the payer and send a money orderto the payee.Escrow ServicesThis long-standing payment method is now used for export. By definition, an escrowservice, such as escrow.com, reduces the potential risk of fraud by acting as a trustedthird party that collects, holds, and disburses funds according to exporter andimporter instructions.Shipping and PricingThe process of shipping and pricing goods purchased over the Internet is identicalto the process for goods purchased by other means, except for digital products128U.S. Commercial Service • A Basic Guide to Exporting