Doing business beyond your borders? Great! Helcim makes it easy to accept payments from customers around the globe using their credit cards.
It's helpful to understand that international transactions sometimes come with specific fees – some that might apply to you as the merchant, and others that your customer might see on their end. Let's break down what these fees are.
In this article
What makes a payment 'international'?
An international payment happens whenever your customer uses a credit card issued by a bank in a different country than where your business is located.
| Example: If your business is in Canada and your customer pays with a card from a US bank, that's an international payment, even if you charge them in CAD or USD. |
Accepting international payments with Helcim
You can accept international credit card payments through any of Helcim’s payment tools (Virtual Terminal, Invoicing, Helcim Smart Terminal, etc.).
Keep in mind:
Customers outside Canada or the US can pay you.
However, you can currently only charge them in Canadian Dollars (CAD) or US Dollars (USD), not their local currency.
Fees you might pay as a merchant
When you accept a card issued outside your country, there are typically two main cost components from the card brands added on top of Helcim's margin.
International Interchange Rate
This is the base interchange fee paid to the customer's card-issuing bank. These rates (often between 1.10% and 2.25% depending on the card type) are specific to international cards.
Here are examples for Canadian merchants (see the respective ‘International’ sections): VISA Canada / Mastercard Canada.
Cross-Border Assessment Fee
This is an additional fee charged by the card brand itself (Visa or Mastercard) for handling the international transaction. This specific assessment fee typically adds around 1% to your processing costs, though the exact percentage varies by card brand and sometimes currency.
| Even if you are a Canadian merchant processing in USD, a transaction from a US customer might still be considered 'international' by the card brands based on your physical business location. |
Fees your customers might pay
Sometimes, your international customers might notice extra fees on their credit card statement related to their purchase from you.
| It's crucial to understand that these fees are charged by the customer's own bank, not by you or Helcim. If customers ask about these, please advise them to contact their bank for clarification. |
Here are common fees customers might encounter.
International Service Fee (or Foreign Transaction Fee)
The customer's bank might charge this fee simply because the purchase was made from a merchant in another country. It might appear as a separate line item or be bundled into the total charge, often ranging from 1-3%.
Currency Conversion Fee
This applies if the customer's card currency is different from the currency you charged them in (e.g. they have a Euro-based card, and you charged them in USD). Their bank charges a fee to convert the currency.
| A US customer paying a Canadian merchant in USD would likely incur an International Service Fee but not a Currency Conversion Fee, as the currency matches. |
Next steps
Review your statement: Learn how to review your monthly statement for your regular processing costs.
FAQs
Can I accept credit cards from customers outside Canada and the US?
Yes, you can accept payments from international customers, but you must charge them in either CAD or USD.
Will Helcim charge me extra for processing an international card?
Helcim does not add any extra markup or international fee from our side just because a card is international.
However, the underlying costs passed through from the card brands (Visa and Mastercard) are typically higher for international cards due to two main factors:
Higher Interchange Rates: The card brands often set slightly higher base interchange rates for cards issued outside your country compared to domestic cards.
Cross-Border Assessment Fees: The card brands also charge additional assessment fees (often called Cross-Border or ISA fees, typically averaging around 1%) specifically because the transaction crosses borders.
Because Helcim uses Interchange Plus pricing, you only pay these actual costs passed through from the card brands plus Helcim's margin. So while Helcim isn't charging extra, the total processing cost for an international card transaction is usually higher due to these required card brand fees.
Are there additional fees when using Fee Saver with international credit cards?
If you’re using Online Fee Saver to process an international card, there’s an additional 1.5% added to the 3% convenience fee that your customer is charged.
My international customer is asking about an extra fee on their credit card bill. What should I tell them?
Advise them that extra fees on international purchases (like International Service Fees or Currency Conversion Fees) are typically charged by their own bank according to their cardholder agreement. They should contact their bank directly for details about the fee. Helcim and its merchants do not apply these specific fees.
If I'm a Canadian merchant processing in USD, are payments from US customers still international?
Yes, the card brands may still classify these as international based on your physical business location and potentially apply cross-border fees, even though the currency is USD.