Chapter 9: cross-border payments
Authored by: Stephanie Wallat, Visa Canada
Expanding your operations to participate in cross-border e-commerce will allow con- sumers from Canada to shop at your website, but it does involve accepting payment types used by these consumers. This chapter assumes that you will not set up an online presence in the local country—at least in the short term. While fairly straightforward, there are a few key considerations that will impact the customer experience in different ways.
Subtopics Accepting Payments from Canada Payment methods Multiple Currencies Taxes, Customs, Duties, Shipping Accepting Canadian Payments Risk Management Chargebacks Best Practices
As a first step, you will need to determine what forms of Canadian payment to accept while keeping it easy and convenient for your new customers. The primary method of online payment for Canadians is still credit cards. Nielsen research showed that 79% paid for online shopping with a credit card followed by alternative payments,¹ although soon Canadians will have the ability to pay online worldwide with their new debit cards from the card schemes. Research that Visa co-sponsored in 2007 on e-commerce and social media in Canada also showed similar online payment behavior.² Accepting Cana- dian credit and debit cards will be seamless if you already accept these payment types today. For other payment types, you will need to check with your payment services provider.
In order to accept payments from Canadian consumers, you will need to amend your online checkout to accommodate for the address differences. The “bill to” and “ship to” addresses must include the Canadian postal code format (alpha-numeric), Canadian provinces/territories instead of states and the country Canada. If you do not already have Address Verification Service (AVS) in place, it is recommended that you add this tool as part of your online security strategy as discussed in the following fraud manage- ment and security chapter.
Online Shopping: A Canadian Perspective, Nielsen Global Omnibus survey, 2008 E-commerce and Social Media in 2007: A Canadian Perspective, A study sponsored by Visa and Yahoo Canada! and prepared by the J.C. Williams Group
Visa e-commerce cross-border handbook for U.S. retailers
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