International POS: How Cross-Border Transactions & Fees Work (2026)

Global retail is more connected than ever. Shoppers expect to be able to buy from anywhere—and get the same smooth checkout experience, no matter where they are. That demand is driving enormous growth: cross-border ecommerce is expected to reach $18.6 trillion by 2033. Many retailers struggle to efficiently manage transactions across countries and currencies, limiting their ability to take full advantage of this growth. 

They need an easy way to process international sales and manage global operations from a single platform. Deploying an international point-of-sale (POS) system that functions consistently across all markets helps solve these challenges and unlocks global potential.

With the right POS solution, you can expand globally and increase sales. Here’s how to choose the right one for your business. 

What is an international POS?

An international POS system allows businesses to handle transactions across multiple countries, currencies, and languages. It offers multi-currency support, localized interfaces, and compliance with international regulations.

This type of system helps brands expand while keeping operations centralized. For example, a retail chain can process euro payments in Paris, operate in Japanese in Tokyo, and generate English-language reports for US headquarters—while ensuring local tax compliance and real-time inventory tracking across all locations.

How an international POS transaction works 

A card-present international transaction works slightly differently from a domestic one. That’s because the POS terminal, your acquiring bank, the card network, and the customer’s issuing bank aren’t all in the same country. 

Additional factors come into play—like foreign exchange (FX) and cross-border fees, applied during the clearing and settlement phase. 

The key players: From customer to your bank account 

While the payment may seem instantaneous, several players work behind the scenes to complete the transaction and move funds:

• Cardholder and card: The customer making the payment with their EMV chip or contactless tap.
• Merchant POS/terminal: Your device. It captures card data and follows local compliance rules, such as prompting for Dynamic Currency Conversion, or DCC, in the UK and European Economic Area (EEA).
• Acquirer/processor: Your payment processor. They route authorization requests, handle settlement files, and serve as your contact for chargebacks. In some cases, a non-bank processor will use a sponsor bank to connect to the banking system.
• Card network (Visa/Mastercard/AmEx): The intermediary that routes messages across borders, applies its own network fees, and manages settlement between banks. 
• Issuer: The cardholder's bank. It approves or declines the charge, holds the funds, and manages the foreign exchange conversion for the cardholder's billing statement.

The transaction flow in four steps 

Technically, international transactions happen in three phases, but for the merchant, it’s easier to think of them as four steps:

1. Tap/insert and authorization: The customer taps or inserts their card. Your POS terminal sends an authorization request to your acquirer, which the network routes to the customer's issuing bank. The issuer approves or declines the charge in real time and places a hold on the funds.
2. (Optional) DCC choice at POS: If you're in the EEA/UK and offer Dynamic Currency Conversion (DCC), your terminal must show the customer the markup as a percentage over the latest European Central Bank (ECB) reference rate and allow them to opt out if they wish.
3. Clearing: At the end of the day or in a batch, your captured transactions are submitted to the acquirer. This is when fees are calculated, FX conversions are applied, and the networks generate the final clearing records according to network rules.
4. Settlement/payout: Funds are transferred. The issuer sends money (minus their share) through the network to your acquirer. Your acquirer then deposits what remains into your merchant account, minus all the combined fees. The exact timing depends on your agreement, but it’s usually one or two days post-sale. 

Demystifying international POS fees 

The combined fees deducted during the last step can be confusing. Here’s what typically shows up on your statement and why it varies for international sales. 

• Interchange: The largest fee paid by your acquirer to the customer’s issuing bank. Set by card networks, its rate depends on region, card type, and whether the transaction is domestic or international.
• Network assessments: Fees paid directly to card networks. They include specific “cross-border assessments” or “international service fees” that apply when the merchant and issuer are in different countries.
• FX/DCC: The cost of currency conversion. If you offer DCC and the customer accepts it, your acquirer sets the conversion rate. If the customer declines DCC, their issuing bank converts the currency at its rate later.
• Acquirer/processor markup: A processor fee for providing service and access. It's layered on top of all the other costs and covers gateway access, processing, risk, and handling cross-border settlement.

These fees are shaped by regulation and market dynamics. For example, the EU extended its cap on non-EU tourist card transactions (0.2% for debit, 0.3% for credit) until 2029. However, post-Brexit, the UK is now consulting on its own cross-border caps, as fees with the EU have risen. That explains why a merchant in Paris and a merchant in London might see different effective rates for the same US-issued card.

For example, imagine you run a US store and you’ve made a $100 in-person sale. If you’re on Shopify, you can process the payment with Shopify Payments:

1. You pay the regular Shopify Payments processing fee (domestic vs. cross-border depends on where the card is registered and card type).
2. If your presentment currency is not the same as your payout currency, add a currency conversion fee (1.5% for the US, 2.0% for other regions).
3. If using a third-party gateway, add your plan’s third-party transaction fee.

Conversion fees are included in customer prices, are charged on capture, and aren’t returned on refunds.

Here’s what that looks like in practice. Assuming you're on the Shopify Grow plan, your in-person card rate is 2.5% + 10 cents. The following scenarios can play out:

*If you charge and settle in USD to a USD payout account, you’ll usually avoid the FX conversion line. 

Features of an international POS system

1. Cloud-based accessibility
2. Integration with global payment gateways
3. Multi-currency transactions
4. Multi-location remote management
5. Automated tax calculations and accounting
6. Multi-language interfaces
7. Cross-border inventory management
8. End-to-end security

1. Cloud-based accessibility

A cloud-based POS system operates on remote servers. Businesses can access their data and perform transactions anywhere with an internet connection. A $15 billion market, cloud-based POS systems are quickly becoming the backbone of cross-border commerce. 

These systems make instant, global updates possible. When a sale occurs in Tokyo, inventory levels are immediately adjusted and visible to staff in New York. Customers’ purchase history from a London store is instantly available at the Paris branch, making personalized service seamless across borders. 

Adding new locations or POS devices requires no additional infrastructure investments. 

2. Integration with global payment gateways

Shoppers are quick to abandon a purchase if their preferred payment method isn’t available. An international POS allows you to accept various payment methods from customers worldwide, including credit cards, digital wallets, and localized payment options. 

A system integrated with global payment gateways can accept payments through Visa, Mastercard, PayPal, Alipay, and region-specific methods, such as iDEAL in the Netherlands or Boleto in Brazil. 

3. Multi-currency transactions

Multi-currency support helps reduce cart abandonment by removing currency surprises at checkout. It also helps businesses manage currency fluctuations and maintain profit margins across markets. An international POS allows customers to view prices, complete checkout, and even receive refunds in their local currency. 

4. Multi-location remote management 

A strong international POS lets you manage multiple stores or branches from one system. That way, you can get a unified view of retail operations across all locations. 

Shopify’s multi-location feature empowers businesses to manage inventory across physical and virtual spaces. A “location” can be a retail store, warehouse, popup shop, or even a fulfillment app. It displays real-time stock levels across all business locations, helping you prevent both stockouts and overstocking. 

5. Automated tax calculations and accounting

International tax regulations are complex, but modern POS systems simplify compliance. These systems act as a virtual tax expert, offering:

• An always-updated database of tax rates
• Automatic tax calculations based on customer location and product type
• Tax-compliant invoices and receipts
• Detailed tax reports for any jurisdiction

Tax compliance mistakes can be costly. For instance, violating European Union VAT rules can result in penalties of up to 100% of the tax owed.

6. Multi-language interfaces

Multi-language POS interfaces let businesses operate across different countries and cultures. They allow staff and customers to switch languages easily, accommodating different backgrounds and preferences. 

This lets a business operate seamlessly across local or national markets. For instance, a single cloud-based system can handle transactions in Mandarin for a store in Shanghai, switch to English for an outlet in New York, and run in Spanish for a branch in Mexico City. 

From an operations standpoint, multi-language interfaces simplify staff training and reduce errors. A global retail chain can use one standardized POS system across all locations, with the interface automatically adapting to each local language.

7. Cross-border inventory management

A strong international POS system should track your products, no matter where they are. For example, if you run a global clothing brand with warehouses in the US, UK, and Japan. 

When a customer in Australia orders a shirt, your POS system automatically determines which warehouse can fulfill the order fastest and most cost-effectively. Many international retailers partner with a third-party logistics company (3PL), which manages inventory and order fulfillment. 

Shopify Fulfillment Network offers full logistics services to deliver orders quickly and reliably. Shopify’s vast network of strategically located fulfillment centers around the world ensures you have the right product at the right location, so orders ship faster and cheaper.

💡Tip: Use Managed Markets to speed up customs procedures by automatically handling local laws, product restrictions, and tax filing. Move inventory and orders faster across borders with Shopify. 

8. End-to-end security

POS security is another feature to consider. Operating internationally requires multilayered protection for transaction data, customer information, and business intelligence across your operations.

Say you have customer data from Japan that passes through European servers. You’d need to ensure compliance with Japanese and EU laws governing processing and storing data. Organizations are also responsible for safeguarding payment data and reducing fraud risks. 

Look for an international POS that uses end-to-end encryption for all transaction data and multifactor authentication for system access. This protects against data breaches and unauthorized access, especially when operating across multiple international endpoints. 

How to choose an international POS

The right POS system is versatile, reliable, and ready to tackle whatever challenges come your way as you enter the global market. Keep these five criteria in mind, and you’ll be well on your way to finding the best international POS for your business:

• Scalability
• Cost
• Ease of use
• Customer support
• Integration capabilities

Scalability 

Scalability refers to a POS system’s ability to grow and adapt alongside your business. It’s an important factor for businesses with international aspirations. 

Look for:

• Multicountry support: The ability to handle various currencies, languages, and tax systems efficiently as you expand into new markets.
• Performance consistency: A system that maintains speed and reliability as you increase the number of store locations and transaction volumes.
• Flexible architecture: Cloud-based solutions or systems that can easily add new features and functionalities as your business needs evolve.

For instance, if your retail chain expands from 10 stores in one country to 100 stores across five countries, your POS should handle that growth seamlessly without compromising performance.

Cost 

Look at the big picture of what you’ll be spending now and in the future. A POS system includes different costs to be aware of, including:

• Up-front expenses: This includes POS hardware, software licenses, and installation fees.
• Ongoing charges: Think about monthly or annual subscription costs and transaction fees.
• Hidden costs: Don’t forget staff training, system upgrades, and add-on features.

It’s important to weigh the initial price tag against the long-term value. Sometimes, a pricier system might save you money in the long run if it’s more efficient and reliable.

For example, a cheaper POS might seem attractive at first, but if it causes frequent downtime or requires ongoing technical support, you could lose more through lost sales and frustrated customers. This means the POS has a higher total cost of ownership (TCO).

Ease of use

Your international POS system should be easy to use. Faster checkout times lead to happier customers and more productive employees.

When it comes to customization, consider POS systems that offer flexibility without requiring advanced technical skills. For instance, Shopify POS UI extensions allow businesses to customize their point-of-sale interface with apps that add or modify features, functionality, and workflows. This means you can adapt your POS to your unique needs without starting from scratch or hiring a developer.

Look for a POS that is intuitive enough for new hires to pick up quickly and flexible enough to grow with your international business. The right system should feel designed specifically for your operation, not a generic solution you have to force-fit.

Customer support 

Support should be accessible at all times, considering different time zones and international holidays. Look for providers offering various contact methods, such as phone, email, live chat, and even onsite support for critical issues. 

For example, if your system experiences downtime during a busy sales period in your Tokyo store, you need to know that you can reach support immediately, get help in Japanese, and resolve the issue quickly to minimize lost sales.

Some providers offer service level agreements (SLAs) that guarantee response times for different issue severities. A comprehensive online library of tutorials, FAQs, and troubleshooting guides can be invaluable for quick problem-solving.

Integration capabilities

A POS system’s ability to integrate with other business software is becoming increasingly important. Consider a POS that offers integrations with your:

• Enterprise resource planning (ERP) system
• Customer relationship management (CRM) software
• Ecommerce platform
• Supply chain management software
• Business intelligence tools

For instance, a retailer with both physical and online stores would benefit from a POS with strong ecommerce integration like Shopify, an inventory management system, and a CRM. This integration can enable features like buy online, pick up in-store (BOPIS), and help sales associates view a customer’s online browsing history for more personalized service.

Win in new markets with Shopify POS

Shopify POS has everything you need to sell internationally: It works online and offline, handles multiple currencies, and keeps track of your inventory worldwide. It’s easy to use, whether you’re just starting to expand or running a large enterprise. 

With helpful features like Shopify Fulfillment Network and Managed Markets, you can easily ship products and manage local laws. Shopify POS gives you the tools to expand your business into new countries with confidence.