Initiated with nationalization and moved onto globalization, the country is encouraging corporate sectors to conduct transactions globally. This can be online international payment websites (e-commerce websites), traveling, working overseas or living there with family. When both currency value and the online international payments transactions are calculated the expected end result is high number of international transactions. The mean values of these online international payments are also moving downwards leading to a forceful payment at times.

The pondering question arises when the customer understands this method is prone to errors, very expensive, tedious and messy. At times in order to meet the current business scenarios international payment systems prevalent years ago will be included forcefully. When these methods can’t meet the needs the systems crash. If elderly people are not ready to move from old legacy systems it is definitely going to be a cumbersome task. As the new demands rise, banks and non-banks face the most out of it conducting a struggle to meet the two systems. International online payments are affected by certain factors.

• Continued growth in sectors like cross-border labor.
• People take their investments overseas.
• More the brain-drain more the intracompany transactions.
• More purchases of fabricated parts and raw materials marking a international payment for the purchase of such goods and services.

Online international payments have different modes. They all have to follow a particular code conduct namely the International Payments Framework (IPF) which was an initiative by the country launched in 2010 as a set framework for all online transactions by the IPFA, headquartered in Atlanta. This standard payment framework is even used for international payments between the country and the UK. This association has rules and contracts that allow its members to minimize the cost bearing international payments. The members are mainly United States Federal Reserve, central banks, different payment institutions and Automated Clearing House (ACH). They fall under the ISO 20022 standards and allow the banks to participate in their initiatives to promote more international payments.

What is online international payment?

Online international payments is a system of payment which settles the transactions through online transfer and has a monetary value attached to every transaction, a payment gateway including the financial institution tied up to a particular website, people and procedures to deliver the items, technologies to make such transactions easier and faster. These factors are essential and have to be linked between your bank account and international bank systems and provide a path for all exchange using these deposits or current amount.

Here they use money substitutes for systems unlike the conservative methods like checks or drafts. With the advent of technology there is no dearth of computers and electronic machines as a substitute to cash payments. Examples are debit cards, electronic fund transfers, credit cards, E-commerce systems, Net banking etc. The essential tie-up is a bank with all these services for both domestic and international transactions. To scale up largely standardization in online international payments have their own standard rules and laws.

The statistics received from PWC as on September 2015 during their 18 ^th Annual Global CEO Survey mentions that the fast-moving inventions in technology is a huge threat to today’s influencers because this is an evolving process. Around 58% of the Chief Executive Officers have a concern in the advancement of technology which has indeed risen by 47% from 2014. They say that the technology behind virtual money has a huge chance to create a renaissance in international payments by introducing the wire transfers at a very low cost.

This can take place in nanoseconds compared to the number of days now. The online international payments traditionally have depended on a banking or financial institution model where 4-5 banks can be tied up to the transfer. This method is actually very expensive as there is a 4-5% tax associated for every transaction. Statistics even mention that there is a potential of data leakage of personal information during such payments that can occur even if the websites say they are secured payment gateways. This is a serious concern for the auditors as payment information is transferred worldwide and data scrubbing can lead to a mismatch in the audit reports.

The online international payments precisely the payment gateway for all global websites, the best way is to take customer payments after all the taxation. There is always a merchant account provider who is at stake being the tricky part, who is the risk-taking company for all the online payment transactions. The payment gateway helps in deciphering the customer’s bank details so that they stay safe. According to Accenture’s statistics as on 2016 North America Consumer Digital Payments Survey, 67% of customers pay by cash and they are expecting a drop of 56% in cash payments before 2020.