Interbank FX LLC’s recent partnership with GlobalCollect will enable the Salt Lake City-based company to process credit card transactions for its international clients, Netherlands-based GlobalCollect reported on Sept. 13.
Interbank FX provides technology and specialized services to trade foreign currency online. GlobalCollect, which provides global payment services for card-not-present channels, will process all credit card payments throughout the United States, Europe and Asia for Interbank FX through its online-payment platform WebCollect.
WebCollect is a “web-based interface offering a portfolio of local, international and alternative electronic-payment methods,” a GlobalCollect spokesperson tells PaymentsSource. Payment methods include international and national cards, direct debits, bank funds transfers, electronic wallets and prepaid offerings, the spokesperson says.
The online platform’s single reporting interface enables international companies to expand quickly while reducing operational costs by “management of one payment vendor instead of what can be up to ten or more connections for international payments,” the spokesperson explains. “Depending on the size of a company, this could provide departmental cost savings of up to 50% or more.”
Additionally, GlobalCollect offers “aggregate volume pricing with most international vendors, which could not be achieved if merchants like Interbank FX went to vendors and banks on its own,” the spokesperson says.
Each time a card is used, Interbank FX will pay a processing fee, which often is “a flat rate instead of a fluctuating interchange rate,” the spokesperson says. GlobalCollect declined to comment on the exact amount of the processing fee, which usually is customized to the specific needs of the merchant.
Through WebCollect, GlobalCollect believes it can help Interbank FX grow its business because Interbank “deals with traders from all over the world who would like to fund their accounts in their preferred payment method and currency,” the spokesperson says. GlobalCollect enables Interbank FX’s customers to do this through “multiple domestic payment products in up to 170 local currencies,” the spokesperson explains.
This means Interbank FX can focus on its “core business while GlobalCollect handles the complex banking relationships consisting of acquiring banks, fraud-services product vendors and multiple region gateways, which in turn saves Interbank FX overhead cost and time,” the spokesperson says.
Companies such as Interbank FX that have a strong international presence can benefit from using GlobalCollect’s services, Adil Moussa, an analyst for Boston-based Aite Group, tells PaymentsSource. “It is a smart idea because all payment methods are consolidated and available in various currencies,” he explains.
Additionally, merchants save money on departmental costs because they can transact in different currencies. Moreover, merchants can reduce the risk of fraudulent transactions because GlobalCollect provides fraud services, which is reassuring to many merchants because the fraud level for international transactions is high, Moussa notes.
Representatives from Interbank FX were unable to comment on the partnership by PaymentsSource deadline.
GlobalCollect in March partnered with UpClick to enable the online-software provider to add payment methods to its platform as it gains more international merchants (see story).
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