Do they offer the payment methods my customers want to use?
By offering the payment options your customers prefer to use, you can realize a significant increase in online sales revenues. At a minimum, your provider should offer all of the major international credit cards used in the countries that you want to sell to, including Visa, MasterCard, American Express, Discover (for USA) and JCB (for Japan/Asia). Adding a popular alternative payment method, like PayPal's Express Checkout, for example, has proven to deliver a conversion rate that is, on average, 23% higher (2). If you sell to people from other countries, adding local payment types in some international markets can lift conversion as much as 50%. German online shoppers, for example, often prefer to make online payments via a direct debit from their bank account versus using credit cards, so this method should be offered if you hope to sell in large volumes to Germany.
Can they process payments in my customer's local currency?
If your publication sells to people from other countries, offering them the ability to pay in their local currency will not only increase your sales, but can generate currency exchange revenues to offset your processing fees. Whether it's foreigners that prefer to pay in the currency they understand best – their own – or business clients who want to simplify their expense accounting, providing local currency pricing offers a powerful incentive for international customers to buy from your site.
Another benefit of selling in multiple currencies can be realized by setting the price for an item at the optimal level for the country you are selling to. For example, a digital edition of one of your publications might generate the most net sales income if it is priced at $4.95 in the USA, 4.95€ ($7.10) in Europe and 30 Pesos ($2.30) in Mexico. When selling high-margin digital goods, establishing the revenue optimizing price by country and using a payment provider that enables you to offer your products in local currencies is certain to boost your online revenues.
If you want to offer multi-currency pricing, look for a processor that offers dynamic currency conversion (DCC) with revenue-sharing and cohesive, currency neutral reporting. When cardholders opt to pay in their local currency, a conversion fee is used in calculating the local price, and some DCC providers will share a portion of this revenue with you (typically about 1% of the transaction amount). Review the reporting capabilities of the payment provider to ensure their systems offer a comprehensive view of your payment transactions, regardless of payment method or currency.
Are they able to properly process recurring transactions?
Many publishers process recurring transactions for subscription payments. To properly process recurring payments, make sure your provider uses a "recurring transaction indicator" and the "account updater" service, which together will minimize declines on subsequent "account on file" payments. The account updater service can increase subscription retention up to 10% as some customers do not update their billing information before their card expires and may cancel after they are notified that their card has been declined. A reduction in authorization declines can also help you avoid higher per transaction authorization processing fees, often equating to an overall savings of 0.4% to 0.7% in processing costs per month depending on your average sale amounts (1).
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