Expanding into the European Union opens the door to millions of potential customers — but only for merchants who can accept multiple currencies and process card payments efficiently across borders. Multi-currency payments combined with modern credit card acquiring give ecommerce businesses a powerful advantage, helping them improve conversion, reduce costs and navigate the EU’s highly regulated payment ecosystem.
The evolving landscape of card-based payments in the EU
In the European Union, payment card usage remains one of the most widely used electronic payment instruments, with a growing share of ecommerce transactions made through credit and debit card rails. The EU card market is dominated by international card schemes, primarily Visa and Mastercard, but several Member States also maintain national schemes, such as Cartes Bancaires in France or Bancomat in Italy. These coexist within a regulated environment designed to strengthen competition, improve transparency and support fair conditions for payment service providers.
Card payments function through coordinated work between the issuer of the payment, the issuing bank, the acquiring bank, the processor, and various technical service providers. For a merchant, understanding the dynamics between these entities is essential when evaluating payment solutions that support different currencies and markets.
Interchange Fee Regulation and its impact on merchants
A fundamental element shaping the European acquiring market is the Interchange Fee Regulation (IFR) — formally Regulation (EU) 2015/751 of the European Parliament and of the Council — which introduced caps on interchange fees for consumer card transactions issued within the EEA.
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These caps are:
- 0.2% for consumer debit card transactions
- 0.3% for consumer credit card transactions
Before the IFR, interchange fees for consumer card payments varied significantly between EU Member States, in some cases exceeding 1%. After the regulation was introduced, maximum rates for these consumer cards were harmonised across the EEA. However, other card categories — such as commercial (corporate) cards, cards issued outside the EEA, and three-party scheme transactions unless co-branded — remain outside the scope of the IFR, meaning their interchange fees can still be considerably higher.
The rules introduced by the IFR:
- reduce the overall cost paid by merchants for regulated consumer card transactions,
- increase transparency of merchant service charges,
- strengthen competition within the market,
- ensure clearer, more predictable fee structures for regulated transactions.
They also require the separation of scheme and processing, ensuring that payment schemes cannot bundle processing services or restrict competition from independent processors. This promotes a more open and competitive acquiring environment.
The role of multi-currency payments in international ecommerce
For international merchants expanding into the EU, offering multi-currency payments isn’t just an enhancement — it is a strategic advantage. Supporting multiple settlement currencies benefits merchants by enabling them to accept and settle transactions in several chosen currencies. The option for customers to pay in the currency of their card is a separate service known as Dynamic Currency Conversion (DCC).
Multi-currency support enables merchants to:
- localise checkout in EUR, GBP, USD and other currencies,
- reduce friction during payment,
- lower cart abandonment,
- improve trust when accepting credit cards from cross-border shoppers.
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When combined with efficient credit card acquiring across jurisdictions, multi-currency payments allow merchants to optimise settlement cycles, reduce FX spread exposure and offer a smoother payment transaction experience for the cardholder.
Acquiring services in a regulated and competitive EU market
In the EU, acquiring services are delivered by a combination of banks, regulated fintechs and new market entrants such as global processors and payment facilitators. The diversity of players increases competition in the market and ensures more competitive and innovative payment instruments are available on the market.
An acquirer operating in multiple currencies must comply with:
- EU regulatory technical standards (RTS),
- PSD2 rules for strong customer authentication,
- monitoring performed by national competent authorities,
- European Banking Authority guidelines,
- obligations associated with services in the internal market.
Modern acquirers must also:
- allow payment service providers to route transactions efficiently,
- support national and cross-border payments,
- provide transparent breakdowns of fees charged,
- handle different type of transaction flows, such as MOTO, recurring, or cross-border ecommerce.
In this environment, merchants benefit from partners who can simplify processing and support a wide range of currencies and payment instruments.
How multi-currency acquiring supports cross-border growth
Cross-border acquiring in the EU allows merchants in one Member State to process cards issued in another, often yielding better costs or performance. When combined with multi-currency capability, merchants gain several advantages:
1. Optimised cost structure
Because IFR caps the interchange rates, merchants benefit from predictable costs for transactions made within the EU. Meanwhile, multi-currency settlement can reduce FX conversion losses.
2. Improved customer experience
Customers can:
- pay in their local currency,
- use familiar payment card options,
- select from different payment methods including credit transfers and direct debits,
- enjoy transparent pricing.
This boosts conversion across borders.
3. Enhanced acceptance of international cards
Supporting accepting credit cards across markets ensures merchants do not lose buyers whose cards were issued abroad. The ability to accommodate international card schemes and national schemes maximises acceptance.
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4. Compliance-driven stability
Multi-currency acquirers must comply with PSD2 and IFR, ensuring safe, fair and transparent processing. For growing ecommerce businesses, this regulatory certainty is invaluable.
The role of direct debits, credit transfers and other instruments
Although card payments dominate ecommerce, the EU payments landscape includes additional instruments:
- credit transfer (SEPA Credit Transfer),
- direct debit (SEPA Direct Debit),
- direct debits in euro,
- credit transfers and direct debits across borders.
These instruments play an important role in recurring payments and sectors such as utilities or telecoms, although their share in mainstream B2C ecommerce remains limited. The EU’s push to promote the use of harmonised payment rails strengthens the overall functioning of the European payment ecosystem.
Why multi-currency acceptance is increasingly essential?
Multi-currency acquiring enables merchants to adapt to:
- diverse shopper expectations,
- varying currency preferences,
- regional differences in card adoption,
- varying cost structures depending on the issuer and type of transaction,
- ongoing European initiatives, such as discussions around the European Payments Initiative (EPI), which aim to develop regional payment solutions, although these are not formal regulatory requirements.
It also supports merchants in navigating:
- FX risk,
- interchange variability,
- scheme fees,
- cross-border performance gaps.
As the European payments market evolves, multi-currency capability will remain one of the most impactful ways to expand internationally.
A strategic opportunity for merchants
The European Union’s harmonised regulatory framework — including IFR, PSD2, RTS and oversight by the European Banking Authority — ensures that card transactions remain efficient and fair for both merchants and consumers.
For ecommerce merchants, combining multi-currency payments with efficient, compliant credit card acquiring unlocks new revenue streams, improves payment performance and supports long-term international growth.
The EU’s focus on competition, innovation and transparency creates ideal conditions for merchants seeking scalable, future-proof acquiring partnerships. By embracing multi-currency acceptance and choosing strong acquiring partners, merchants can operate more effectively within the EU — and maximise the opportunities of a modern, interconnected digital economy.
