Multi-currency credit card processing occurs when your business can accept credit cards from customers in foreign currencies. If your business charges customers in more than one currency (for example in US dollars and Canadian dollars) you are doing multi-currency processing.
Multi-currency processing can involve a complex setup of many different billing currencies. For exammple, you might charge customers in USD, CAD, GBP, EUR, ZAR, AUD and NZD, which would allow you to target customers in all major English speaking countries.
Visa and Mastercard ensure that cards can be used anywhere in the world, easily and without hassle for the cardholder. Even if you don’t cater to foreign customers they can still easily complete a purchase. Their card issuing bank will see that it’s a foreign transaction and will handle all the payment gateway exchange rate concerns. It just automatically works… so technically speaking, you don’t need to bill foreign customers in their own currency. However, your business won’t be very effective if you don’t.
Consumers are increasingly sophisticated and have many options to choose from. If you want to achieve success in foreign markets, you must cater to your foreign customers as a priority and not as an afterthought. It’s not just about providing simple familiarity because you want to encourage sales, it also reduces disputes and chargebacks that sometimes occur as a result of pricing discrepancies when credits are issued.