Hi Kevin,
Your post has compelled me to finally press the "Join" button to
Silicon Beach :-))

I can give you some insight on how we set up things for DxO Labs
(dxo.com) a software start-up based outside of the US (France) but
where the US quickly became our first market.

We operated through an e-commerce third-party but what I'll describe
is applicable for a direct e-commerce setup as well.

1) You are right to want to present US$ pricing and invoicing for the
US. Great country the US but they're not usually over-aware of
anything that is foreign. (DxO has Euro / US£ / GBP and Yen pricing)

2) Initially we set-up VISA and Mastercard. Amex is always a pain. I
don't think you have to worry too much about not having AMEX at launch
as in the US people/organizations usually have multiple cards. You
might want to add PayPal which I guess would be quite prevalent in the
web/start-up space. Our local banks in France were all pretty hopeless
when it came to e-commerce. If we wanted to borrow money to buy
forklift carts they could understand but setup ecommerce to sell
software globally...no.

3) Our provider used two payment gateways: Datatrans (http://
www.datatrans.ch) and Bibit (www.bibit.com). Datatrans is a swiss
organization so probably not too helpful but Bibit I think are good
and worth you having a look at. We also had talks with Digital River
who are a massive presence in the software e-commerce market but never
went through with them. They seemed expensive compared to Bibit.

4) Even if you work with a reputable payment gateway, be prepared to
handle payment exceptions and incidents. There is a whole "black
magic" that goes on the other side of the gateway and that you have no
control over. Sometimes inexplicably a customers card gets refused by
the gateway even though they used it the same morning on another site.
Many of these incidents are user-generated (card over the limit,
behind on payments, disingenuity...). But sometimes it seems like a
business rule behind the gateway that has gone mad. I was on the
receiving end of this recently when all HSBS Efptos cards were being
refused by companies in the Coles group...

5) I would be very very careful before opening a US company given the
tax/regulatory burden associated. At the very least you would want
advice from an international tax/law adviser who's been there before.
I think it's very feasible to setup a great customer experience for
yor US customers without actually having a to do this setup. DxO Labs
has been operating and selling in the US for nearly five years and all
the e-commerce is still offshore (relative to the US).

6) One final thought, you might want to speak to banks that are
present in Australia but have a strong US presence. I'm thinking HSBC
or BankofAmerica for example. They might be able to provide some level
of "bridging" between a US ecommerce system and an ozzie bank account.

I hope this helps. Let me know if there you have any other questions
relative to your e-commerce setup.

Regards. - Luc

On Dec 12, 5:59 pm, spellrus <[email protected]> wrote:
> Hi Guys & Gals
>
> Thought I would ask you fellow start-up folk to share some of your
> experiences.
>
> We are preparing our producthttp://spellr.usfor paid launch soon.
> As much of the interest in our product has been from the US we have
> chosen to charge in $US and want the users to have nothing to do with
> $AU.
>
> We also wish to offer VISA, Mastercard & Amex (all charged in US$).
>
> Interestingly this is not a simple thing to do.
>
> The options we face are:
>
> 1) AU payment gateway + NAB multicurrency account. Great solution
> except this only works for Visa & Mastercard.  AMEX AU provide no
> service to accept $US if you are an AU company.
>
> 2) Paypal - doesn't accept Amex if you are an AU business.
>
> 3) Worldpay - challenges on recurring billing
>
> 4) Opening up a US bank account and obtaining a US merchant facility.
>
> I would be interested to know any AU companies that have had the same
> issues and how you approached it.  I am also interested to know how
> easy/difficult it is to set-up a US company + Bank account + merchant
> facility.
>
> As an aside in my travels researching this issue I found the following
> interesting links:
>
> 1) Good diagram explaining the online payment 
> process:http://www.usaepay.com/diagram.htm
>
> 2) List of online payment gateways/payment 
> gateways+merchantshttp://www.x-cart.com/payment_gateways.html
>
> Looking forward to getting other peoples' experiences.
>
> Regards,
> Kevin

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