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International
Expanding into the US
Josh Leuenberger on what businesses need to know about payments
The US represents a significant growth opportunity for UK businesses, but successfully entering the market requires more than attracting American customers. From payment preferences and currencies to local acquiring, tax and compliance, businesses need to consider how their payment strategy can support both the customer experience and their bottom line.
What should UK businesses consider before they start selling into the US?
US customers may have different payment expectations. Businesses should consider how US customers want to pay, the currency they expect and the checkout experience they expect. Credit and debit cards are important, but digital wallets, like Apple Pay and Google Pay are widely used and remove friction at checkout. Or, if you sell B2B, being able to accept ACH, the US equivalent to BACS, may be required.
How important is it to accept payments in US dollars?
Very important. Presenting prices in US dollars makes the cost clear and eliminates uncertainty. It also makes the checkout experience feel more relevant and trustworthy. Our data shows that businesses see revenue increases of up to 12 per cent simply by presenting prices in customers ' local currencies.
What about the cost of processing US transactions from the UK?
Processing US transactions crossborder can incur up to two per cent in additional fees. However, if the UK business has a legal entity in the US, it may be able to take advantage of local acquiring.
Local acquiring helps businesses avoid these additional fees while also improving authorisation rates.
Are there other ways to offset the costs of payment processing in the
US?
Yes. For UK businesses with US legal entities, surcharging may be available for offsetting the costs of credit card processing. Surcharging is when a fee is added to applicable credit card transaction and is governed by local and card brand rules. Not all states allow surcharging, so you need a provider that offers tools and resources to help you maintain compliance.
How complex are tax and compliance requirements when selling into the US?
Tax and compliance requirements in the US can be complex as they are not uniform across the country. Businesses need to navigate different state-level tax and regulatory requirements, in addition to federal requirements.
Working with a provider that understands these requirements can help reduce the operational burden and the risk of costly mistakes.
Should UK businesses use a separate payment provider for the US?
Not necessarily. While some businesses add a new gateway or processor when entering the US to meet the local needs, it can also add problems. It adds another integration for developers to maintain, another system for teams to manage, another source of reporting to normalise and reconcile, and another provider to coordinate when changes are needed.
A single payments solution that can support both UK and US operations creates a simpler foundation for growth while still allowing businesses to offer a localised US payment experience.
What should a UK business look for in a payments partner?
The right solution should support USD, the payment methods US customers expect and, where appropriate, local US acquiring and surcharging. It should also help businesses navigate tax and compliance requirements and provide tools to optimise payment performance.
What is your biggest piece of advice for UK businesses entering the US?
Think about payments before you enter the market, not after.
UK businesses often invest heavily in marketing and sales when expanding into the US, and payments should receive the same attention.
Understand how American customers want to pay, make the checkout experience feel local, and investigate if strategies like local acquiring and surcharging could reduce costs. And be sure your infrastructure can scale with your business.
The objective isn ' t simply to accept payments from US customers. It ' s to create a payment experience that helps turn US demand into revenue while keeping costs and operational complexity under control.
Josh Leuenberger is sales executive at BlueSnap, powered by Payroc
www. bluesnap. com