So you've set up shop and have been around for a bit. You've mastered your local market and are well acquainted with your customer base. Business is booming, the market is hot, and your brand name is out there. And now it's time to take on a bigger market. It’s time to go global! 

This means it’s time to crack open those books and learn about every payment method available in the area you are seeking to target. 

We’ve got news for you - it’s not just payment methods you have to learn about. You need to be ready to rethink everything you thought you knew about your domestic market, too. It’s all about to change.

Plastic is King, But There are Many Kingdoms

If you're coming from a market like the US, you'll think plastic is king. After all, CNP (card not present) transactions are your numero uno. But as you move into other countries, you’ll realize that every country has its own way of doing things, and your assumptions around the most prevalent payment methods are misinformed.

But wait - aren’t credit cards everywhere? Yes and no. Customers in every geography have different reasons for using different methods. Here are a couple of questions to consider, to help frame your thinking:

• What is the average income per capita and how is that spent?
• What is the most popular payment method, and why?

Those answers matter – a lot. Here’s why: In Mexico, consumers incur an almost 42% interest rate on credit card transactions. This is why they opt instead for OXXO, an offline, low-risk, cash-only transaction. Similarly, using a credit card in Brazil comes with a 290%(!!!) APR. Consumers there wisely opt for Boleto instead of credit.

When you expand your business to new markets, all domestic assumptions are off the table. Look deeply into each market, talk to your customers, and keep investigating what’s working and what’s not.

Understanding the Methods

So you’ve done the research, and you understand what payment methods are popular where. Great! Now, it’s time to do a deep dive into the methods themselves. 

Some questions to think about as you add new methods:

Is my fulfillment set up correctly with this new method? Am I shipping too early? too late? 

Are customers getting the right experience with this new method? Have I integrated it in a way that locals are familiar with? 

Take Boleto, for example. It’s a cash method, so are you prepared to refund customers who’ve paid cash (by bank transfer, for example)? If a customer starts the Boleto process, but doesn’t complete it by paying at a kiosk, how long are you prepared to sit on inventory? New methods = new considerations. 

Going global offers a significant expansion opportunity for any business, and you definitely want to get in on it. But it’s also extremely risky if you don’t approach new markets with the right mindset. Payment methods aren’t the only thing you need to have on your radar. You can expect different trends not only in purchase patterns but in fraud, as well.

Fraud Rings Vary by Locale

Every group of fraudsters varies from country to country, state to state, and at times, even from city to city! While you may have been exposed to a plethora of groups using multiple fraud patterns in your domestic market, it doesn't mean these criteria will be prevalent (or relevant) across the globe. And this poses a very real challenge for businesses.

Fraud rings and fraud patterns are exceptionally diverse, and target merchants in unique ways. The patterns you will begin to learn are defined by where your business fits in the market. Warm weather countries will go for your t-shirts as quick grabs, while street markets will take care of the rest. If a group finds out you don’t understand the local purchase patterns, they’ll take advantage of your domestic mindset, and you’ll be out thousands of dollars. 

Fraud Controls Every Merchant Must Master 

Ensuring you have your fraud controls fine-tuned is key here. Pay close attention to phone number velocity, single address variations, credit card, and device-unique counts, and all of the usual suspects in turn – and don’t let your guard down there for a minute. Make sure you are also checking details from the "customer's" browser, including:

• Which HTTP site are they using?
• What language or time zone they are using?
• Is it a mobile or desktop transaction? 

For the fraud team at Reach, these are the questions and investigations that excite and inspire. For those outside of the fraud prevention realm, well… they likely consider this a nightmare. It’s why having a team like Reach in your corner is so important. We take care of these complicated concerns for you - there’s a lot to keep track of, and you will lose your shirt if you don’t. Literally. 

Reach out and we’ll talk you through what it means to have a global mindset, and we’ll show you how we prevent fraud for clients, and ways this can all save you time and money while expanding your business to reach a global market!