Tuesday, April 7, 2009

Time to Domicile! Say what?

I have to what? I have to domicile where?

I have been in on several conversations where plans to sell aggressive globally halt at this point. The reality is that some countries may require you to have a local, physical presence in order to do e-business.


If a country doesn’t require you to setup shop there, it will probably be necessary at some point, because you will benefit from lower merchant fees and more favorable interchange rates.

Another point to consider is that if you do not have a local acquiring (bank) relationship you may be missing out on a significant amount of potential card business. I know from my own experience that with Carte Bleue in France you will not be able to process about 30% of the cards if you don’t have the correct local banking relationship set up.

The good news is that you may be able to create regional relationships that cover a swath of countries like in the European Union.

As always I would say it is best to consult with an international business consultant. But where can you find one of those? Hmmm…. Just ask and I can get you in touch with the right people.

(BTW: My definition of a global web business is that you have setup marketing, sales and payment systems to support the country you are selling to)

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