Multi-Currency Payment Gateway

A multi-currency payment gateway is the ideal solution for cross-border businesses that frequently deal in several major currencies. If you’re considering this solution for your business, it’s essential to understand how they work, how they differ from regular payment gateways, and things to look for when comparing providers.

What Is a Multi-Currency Payment Gateway?

A multi-currency payment gateway is a global payment gateway that accepts, processes, and settles payments in more than one currency. In contrast, a regular payment gateway converts all alternative currencies to your chosen currency. The funds are then settled in that currency to your business bank account.

Let’s look at an example of a regular payment gateway. You are a Switzerland-based business that sells handcrafted organic chocolate online. All of the prices on your website are expressed in Swiss francs (CHF). When a customer from Belgium comes across your website and decides to buy a gift pack, they check out in CHF and are charged in euros at the real-time market exchange rate. The funds are settled to your business bank account in CHF.

Now, let’s imagine you have a multi-currency payment gateway. The prices on your website are automatically displayed in euros when the Belgian customer opens your product menu, based on their IP address. The customer checks out in euros, the funds are held in your merchant account in euros, and you receive a payout in euros for all transactions completed in that currency in that settlement period.

How does a Multi-Currency Payment Gateway Work

The following steps occur in a transaction with a true multi-currency payment gateway:

• Initiation: The customer initiates a transaction through your online checkout. They may be prompted to select their preferred currency. The price and additional costs will then be displayed in that currency. Certain currencies are typically supported without conversion, while others will be converted at the real-time exchange rate.
• Authorisation: The payment gateway communicates with the merchant acquirer and issuing bank to check whether the customer has enough funds to cover the transaction. The transaction returns an “approved” or “declined” result.
• Capture: The funds are transferred from the issuing bank to the acquiring bank. This step typically takes longer with cross-border transactions than domestic ones.
• Settlement: The funds are settled in the same currency in which they were charged (for supported currencies) or in the merchant’s chosen currency if charged in a non-supported currency.

Benefits of Multi-Currency Payment Gateways

Multi-currency payment gateways have many benefits for business owners with an international clientele or global locations.

• Reduce friction with customers: Customers feel more comfortable when they see prices displayed in their own currency. Prevent lost sales from site visitors seeing a foreign currency and hesitating or abandoning their cart.
• Build transparency and trust: When customers pay in their own currency, they know exactly how much they will be charged.
• Improved operational efficiency: Charge customers and pay vendors and employees in the same currency to avoid double currency conversions.
• Easier accounting: Track global cash flows and simplify reconciliation and financial statements.

What to Look For in a Multi-Currency Payment Gateway

If you’re an e-commerce merchant, a multi-currency payment gateway equips you with a portal to global sales and increased reach for your online business. But it’s not enough to simply choose an international payment gateway that supports a wide range of payment methods for domestic and foreign customers. There are several other important features to keep in mind to ensure a seamless and secure payment experience.

1. PCI Compliance

The first standard that a global payment gateway must meet is PCI-DSS Compliance. This stands for “Payment Card Industry Data Security Standard” and is an international standard that is managed and enforced by the PCI Security Standards Council.

To be PCI compliant, a payment gateway must:

1. Use and maintain firewalls
2. Use proper password protections
3. Protect cardholder data
4. Encrypt transmitted data
5. Use an antivirus solution
6. Maintain properly updated software
7. Restrict access to data
8. Have unique IDs for access
9. Restrict physical access
10. Create and maintain access logs
11. Scan and test for vulnerabilities
12. Maintain appropriate document policies

Online merchants can be potentially responsible for maintaining PCI compliance and may be liable for exorbitant fines if a customer’s secure data is stolen. When you outsource this role to an international online payment gateway provider, this third-party provider takes on the responsibility for maintaining PCI compliance on your behalf.

2. Secure Encryption

As per #4 on the list of PCI Compliance requirements, any data that is transmitted through your payment gateway needs to be encrypted securely. This is essential for preventing account data breaches that could have catastrophic consequences for your business.

The technology that web servers use to scramble important information (such as credit card numbers) for secure transmission is commonly referred to as Secure Sockets Layer or SSL. Technically, the most updated version is Transport Layer Security (or TLS), but the term SSL is still used to cover both of these certificate types.

SHA-256 SSL Encryption

When reading the specifications of a multi-currency payment gateway, you should be able to see exactly which SSL signature is being used to encrypt your customers’ secure account data. Here, “signature” refers to the algorithm used to hash information into an encrypted form that cannot be read or modified by hackers.

At Unicorn Group, we use SHA-256 SSL encryption, which meets the most recent standards established in 2016. The “256” in the signature means that there are 2256 possible hashes that can be generated by the algorithm. That’s more than there are grains of sand in the world.

3. Fraud Scrub

Offering a multi-currency payment gateway opens you up to international customers but also to international fraud. The best payment gateway for international transactions will provide a fraud scrub security feature that works around the clock to block fraudulent purchases while providing the flexibility to adjust your parameters.

How Fraud Scrubbing Technology Works

Fraud scrub technology acts as a filter to block problematic transactions before they occur. As the technology doesn’t know each individual purchaser and whether they are a genuine customer or not, it uses a set of predetermined rules to decide which transactions to block.

In the case of an action that is considered suspicious, the fraud scrub performs one of three protocols:

1. Flag the transaction
2. Stop the transaction
3. Block the card number

The merchant can set, change, or adjust these parameters at any time.

Why It’s Important for Fraud Scrub to Be Adjustable

Rule-based filtering sounds great. However, there are cases in which genuine customers might perform actions that are flagged as suspicious for numerous reasons. Consider the following real-life scenarios:

• A customer enters a shipping address that doesn’t match the billing address because they are purchasing a product as a gift.
• A customer enters the wrong billing address multiple times because they are trying to remember which address they registered with their bank.
• A customer purchases a large number of products to take advantage of a seasonal discount.
• A customer is making a purchase from a flagged country because they are enjoying some online shopping while they travel abroad.
• A customer is making a purchase with a bank card from a flagged country because they have moved overseas permanently and still wish to purchase from you.

When fraud scrub settings are too rigid or restrictive, you may lose all of the above transactions and miss out on a significant amount of income (not to mention losing valuable repeat customers). The best payment gateway for international transactions will allow you to decide which risks you’re willing to take and change the parameters for specific situations. For example, it might:

• Set higher purchase thresholds for customers who tend to make large orders.
• Raise the purchase thresholds temporarily for a seasonal discount or special offer.
• Allow transactions from a “high-risk” country temporarily to accommodate a known customer who now lives overseas.
• Flag transactions with a different shipping and billing address rather than blocking these transactions outright.
• Block specific card numbers rather than blocking all cards from a country or continent.

4. Global Capacity

Many of the problems associated with an overly restrictive fraud scrub are eliminated if your multi-currency payment gateway is set up to handle transactions from a large number of countries around the world, including those deemed as “high-risk countries.”

In general, countries considered “low-risk” include:

• The U.S.
• Canada
• Australia
• E.U. countries
• Japan

By default, every other country is automatically considered “high-risk,” simply because these countries tend to display higher rates of fraudulent activity and/or have more restrictive laws when it comes to purchasing and importing international goods.

The best payment gateway for international transactions will accept multiple countries and currencies while ensuring protection from international fraud. Unicorn Group currently processes debit and credit card payments from customers in 195 countries using 164 forms of currency.

5. Chargeback Mitigation Tools

A credit card chargeback occurs when a transaction has been processed and is then subsequently reversed by the cardholder, the merchant, or the cardholder’s bank. When your company regularly processes payments through an international online payment gateway, the card networks you work with and your acquiring bank will monitor the number and ratio of chargebacks and apply sanctions if you exceed the threshold.

Chargeback Thresholds and Common Sanctions

Mastercard and Visa are the leaders when it comes to monitoring and punishing chargebacks. Both of these card networks allow up to 100 chargebacks per month or a 1% total chargeback-to-transaction ratio. Your acquiring bank may have thresholds that are lower or higher than these figures.

Depending on which network you use, you may be placed on a monitoring program if you get close to the monthly limit for chargebacks. These programs may include higher (and rising) fees per chargeback and/or a timeframe for lowering your chargeback ratio to avoid being placed on the industry blacklist.

6. A Multi-Currency Pricing Model

To ensure the optimal shopping experience and minimize customer frustration, you must provide transparent pricing for every currency you accept. As an extension of that, your gateway should provide accurate currency conversions that account for exchange rates and foreign transaction fees, thus avoiding disputes and ensuring an optimal customer experience.

Cross-border transactions are tricky, but as long as you’re clear about the conversion rates and currency exchange rates, and as long as your gateway accurately processes transactions at those rates, you should be able to minimise any disputes.

7. Convenience & Support

Finally, a multi-currency payment gateway should offer features that make your life easier.

These include things like:

• Easy and quick integration
• Short total setup time
• The ability to sync across multiple devices
• Real-time data visualisation
• The ability to scale as your business grows
• Compatibility with major shopping cart providers
• The ability to pay affiliates, resellers, and employees
• A user-friendly customer database
• The option for recurring billing cycles
• 24/7 customer service
• No hidden fees

FAQs About Multi-Currency Payment Gateways

Do multi-currency payment gateways handle recurring payments?

Yes, multi-currency payment gateways handle recurring payments. This is especially helpful for SaaS and subscription businesses that operate across borders.

Do multi-currency payment gateways have hidden fees?

Other multi-currency payment gateways may charge additional fees for cross-border transactions and conversions from non-supported currencies. Ask for a detailed list of fees before signing up.

How do multi-currency payment gateways determine the exchange rate?

Multi-currency payment gateways generally convert currencies at real-time exchange rates.

Do multi-currency payment gateways handle refunds?

Yes, multi-currency payment gateways handle refunds just like regular payment gateways.

How do you integrate a multi-currency payment gateway?

Multi-currency payment gateways come in hosted, API-hosted, and non-hosted varieties. A tokenised API-hosted gateway with integration support is generally the best option for serious businesses. This option allows customers to complete transactions on your website while keeping customer payment information (and PCI compliance) out of your hands.

Choosing the Best Gateway for Multi-Currency Payment Processing

When you understand the features that are essential for international currency processing, it’s much easier to find an international online payment gateway that meets the needs of both your business and your customers.

When each customer is able to use their preferred currency and payment method, you will capture a lot more sales. It’s a little work to get set up at the start, but the rewards will be well worth the effort.

Published: June 23, 2021
Last updated: February 23, 2026