Like the mobile world, eCommerce is not a regionally-specific type of product or service. Anybody can transact from anywhere they want! Research has shown that cross-border eCommerce figures soared to an impressive figure of $300 billion, but many local entrepreneurs are facing great challenges when wanting to move their online stores to an international level. During CNP Expo 2013, David Montague, founder of The Fraud Practice, talked about the main barriers to international expansion.


Among these challenges, here are three of the most important:


  1. The payment method. David refers to the way we can actually process an international payment. While in the US a credit card is the most-used and preferred payment method, in China people are used to taking money out of their bank accounts, meaning that the vast majority of the population pays by direct debit. So we have to get past this hindrance and try to adapt the business to achieve international payment acceptance.
  2. Fraud. How can we be sure that someone from Shanghai is sending an online merchant in Western Europe an accurate set of data, such as address, phone numbers or ID? Only a small number of providers can give access to data to make an online merchant feel comfortable with international transactions. There are plenty of providers and services to rely on in the US and Western Europe, but once past these regions the number of trustworthy companies with which you can partner decreases significantly. This represents a big barrier to transacting internationally! 
  3. Tax and Compliance is of course one of the main factors with which you need to become familiar when expanding globally, as this might be a major barrier to a successful global expansion. If you are not aware of the local taxes and local legislation, the risk management and the due diligence processes you need to go through to comply with both international and local legislation, we advise you to find a reliable partner. A global acquirer, for instance, can furnish the necessary knowledge in terms of payments processing, risk, fraud and legislation, for a successful international expansion. Read more about law & legislation in the cross-border eCommerce arena.


“If you want to do business internationally, you should!” says David.


You should not let payment and fraud be a barrier to global expansion. It’s not that complicated – you only need to go out and search for the international opportunities the internet offers! With due diligence and by partnering with trusted companies that can support your global expansion and local adaptation, you can make cross-border eCommerce domestic and truly profitable.