Key Considerations for Expanding E-Commerce Into Brazil: Payments, Fraud and Taxation

While there are many things to take into account when it comes to expanding e-commerce operations internationally, let's take a look at three key considerations for Brazil specifically around transactions: payment methods, fraud and taxes.

Payment Expectations
One of the most popular online payment methods in Brazil is credit cards, and around 75 percent of online purchases that are paid by credit cards are financed through installment options. Retail prices are often given as a combination of installment rates and the number of installments instead of the total price. The installment standard makes card payments more expensive (up to 15 percent merchant discount rate based on the duration of the installments), but by adding the installment plan consumers are more likely to make a purchase. Merchants receive the total payment immediately, but the credit card is charged multiple times with the acquiring bank giving that "credit" to the consumer. This is often called a "cash-in solution."