Global ecommerce has become a vital part of all commerce, with merchants of all sizes reaching customers in international markets. However, what’s necessary to facilitate those sales relies on cross-border payments. Cross-border payments involve the transfer of money across multiple currencies, jurisdictions and banking institutions. With trillions spent annually in 2025 across cross-border payments, it’s one of the most complicated pieces of the international commerce puzzle, especially for high-risk merchants. Merchants selling nutraceuticals, CBD, travel and subscription-based services need to tread lightly to prevent complications, as each industry comes with stricter policies and higher fraud scrutiny. Thus, understanding how to best approach this process involves more than merely opening international checkout options; it requires guidance from global merchant services who can navigate compliance expectations, settlement windows and fraud considerations. When cross-border payments are understood and executed, additional revenue streams are achievable that increase market share and support sustainable growth in competitive industries.
What Are Cross-Border Payments?
Cross-border payments occur when a buyer and seller exist in different countries using different currencies. Payments typically involve various intermediaries like local banks, international card associations and correspondent banks. In contrast, local transactions are straightforward; cross-border payments must navigate additional currency conversion protocols, regulatory checks and fraud safeguards[1]. Thus, for merchants, the direct connection to payment complexities drives up costs, settlement speed and customer experience. Therefore, it’s critical to work with global merchant services providers who ease the burden through fee-reduced, transparent and secure programming.
Why Cross-Border Payments Are Important to Ecommerce
Merchants that want to grow need to look no further than international markets; yet without practical cross-border payment offerings, expansion efforts will fail. Customers want to pay in their currency, using known payment options, and checkout should reflect transparent pricing[2]. Failing to provide this information leads to cart abandonment and missing sales. Additionally, merchants must account for operational realities like foreign exchange fluctuations, delayed settlements, and compliance with local laws. As a result, cross-border payments go beyond the simple transfer of funds; they boast a level of trust that must be maintained in international spheres.
Who is Involved? Global Merchant Services Make Cross-Border Payments Happen
Global merchant services provide everything necessary to achieve successful cross-border payments. From credit card acceptance to alternative payment options to currency conversions, global merchant services exist for compliance with international payment standards from PCI-DSS to AML (anti-money laundering) standards. This is especially important for high-risk merchants whose needs differ from typical merchant service providers. Many processors automatically decline accounts from companies selling CBD or nutraceuticals[3]. However, specialized global merchant services offer merchant accounts that provide payment solutions that factor in higher chargeback ratios and stricter monitoring. This means those with preferred processors can grow internationally without fearing frozen accounts or costly fines for non-compliance.
What Are the Challenges of Cross-Border Payments?
Of course, cross-border payments present challenges worth noting as well. Currency conversion can eat away at margins, delayed settlements can disrupt cash flow and relative compliance differences pose legal liability exposure. Fraud operates under heightened risks as well due to identity verification issues and address differences not matching. For high-risk merchants, these are compounded by processor scrutiny results requiring more reserves or higher retainers and collateral arrangements[4]. Thus, working with a specialized global merchant services provider makes sense but so does acting proactively for fraud avoidance and transparency with clients.
Opportunities Associated with Cross-Border Payments for High-Risk Ecommerce Merchants
Cross-border payments create opportunities yet also pitfalls for high-risk merchants. Wellness-related ecommerce companies may have growth opportunities across supplement companies looking to expand into regions with a focus on wellness; travel agencies should consider the international traveler wanting services valued across payments; CBD companies should look no further than regions with more lenient regulations seeking insight into usage. However, all will need access to merchant accounts that accept cross-border payments without excessive reserves or freezing accounts—and working with those who understand high-risk industries enables these companies to pursue revenue opportunities internationally while avoiding common pitfalls.
The Future of Cross-Border Payments in 2025
Cross-border payments are evolving; blockchain technology reduces settlement times while real-time payment networks are bringing international transparency to what used to be convoluted processes. Additionally, AI-driven fraud systems improve identification across nations while governing bodies aim to standardize approaches to reduce friction for merchants and consumers alike. In 2025 and beyond, cross-border payments will become faster, safer and cheaper; merchants who can adopt sooner will position themselves for international growth while those who cannot will fall behind the competition.
Six Components Determine the Success of Cross-Border Payments
Currency Conversion
Every cross-border transaction requires conversion between currencies. Transparent rates and minimized conversion fees protect margins and create customer trust.
Settlement Timelines
International transactions often settle more slowly than domestic ones. Merchants must plan for delays that affect liquidity and cash flow.
Regulatory Compliance
Different countries impose unique rules around data handling, anti-money laundering, and consumer protections. Compliance is non-negotiable for global merchants.
Fraud Prevention
Cross-border fraud attempts are more difficult to detect due to variations in identity verification systems. AI-driven fraud detection helps close these gaps.
Local Payment Preferences
In some regions, customers prefer alternative payments like digital wallets or bank transfers. Offering these options reduces cart abandonment and boosts conversions.
Processor Selection
Working with global merchant services providers that specialize in high-risk industries ensures access to international payment networks and reduces account instability.
FAQ
Q: What are cross-border payments?
A: Payments made when the buyer and sellers exist in different countries requiring currency conversion while triggering additional compliance steps.
Q: Why do cross-border payments matter for ecommerce?
A: They allow merchants to sell worldwide while giving customers local payment options and expended revenue streams.
Q: How do global merchant services support cross-border payments?
A: They provide infrastructure for credit card acceptance and currency conversion compliance as well as fraud prevention across various jurisdictions[5].
Q: What challenges do merchants face with cross-border payments?
A: Currency conversion fees, delayed settlements, fraud risk, differing regulations.
Q: What trends will shape cross-border payments in the future?
A: Expect blockchain technology real-time networks and AI-driven fraud prevention to drive the next wave of change along with standardized global regulations.
Sources
- McKinsey & Company. “The Future of Cross-Border Payments.” Accessed August 2025.
- Visa. “Visa Direct Cross-Border Solutions.” Accessed August 2025.
- Mastercard. “Cross-Border Services Overview.” Accessed August 2025.
- PYMNTS. “Trends in Global Ecommerce Payments.” Accessed August 2025.
- PCI Security Standards Council. “PCI DSS in Global Payments.” Accessed August 2025.
