Succeeding in the U.S. market: Why local processing and consumer knowledge matter

Published: June 4, 2025

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Learn how local processing, a Merchant of Record, and U.S. consumer insights can boost approval and conversion rates in global ecommerce.

Succeeding in the U.S. market: Why local processing and consumer knowledge matter

You can’t scale in the U.S. without adapting to what American shoppers expect: local processing, instant gratification, and seamless checkout. American shoppers have unique expectations shaped by decades of credit-based purchasing, fast delivery models, and frictionless online experiences. Businesses selling into the U.S. must adapt their strategies to meet these local demands - otherwise, they risk lower approval rates and lost conversions.

Credit Cards Drive U.S. Consumer Spending

In the U.S., credit cards drive the entire ecommerce industry. With an average of 4.5 credit cards per person, American consumers are highly dependent on lines of credit to make everyday purchases.

Unlike in many other countries where debit or bank transfer options dominate, U.S. consumers prefer credit cards not only for convenience but also for rewards. Cashback, travel points, and other perks are major incentives to spend. International retailers who fail to offer the full range of major credit card options (Visa, Mastercard, American Express) will see it reflected in lower conversion rates.

Fast, Free, and Frictionless: The New Standard in U.S. Shopping

Thanks to Amazon, American consumers have grown accustomed to same-day or next-day shipping. This expectation now extends to most ecommerce experiences. Offering free and fast shipping isn’t a bonus - it’s a requirement. For global ecommerce brands, mimicking this level of service requires localized logistics and fulfillment strategies.

The expectation for a fast, seamless checkout also puts pressure on international sellers to eliminate any unnecessary steps in the buying journey. That includes things like 3D Secure (3DS). While common in Europe and other regions, 3DS introduces friction in U.S. checkout flows, which can hurt conversion rates.

Why Local Processing and Local Presence Matter

One of the most common mistakes global ecommerce businesses make is failing to localize their payment infrastructure. If you're routing payments through foreign banks or unfamiliar payment flows, U.S. issuing banks may flag transactions as risky, even if they’re legitimate.

This is where a merchant of record becomes especially powerful. By working with a provider that enables local processing, your business can increase approval rates by appearing as a trusted local entity to both consumers and their banks. The result? A smoother transaction experience and fewer declines at checkout.

Additionally, local processing helps reduce chargebacks and customer service friction, especially in a credit-heavy market like the U.S. where consumers are quick to dispute charges that feel unfamiliar.

Timing Is Everything: U.S. Buying Cycles

U.S. ecommerce has clear seasonal peaks. Black Friday, Cyber Monday, and the holiday shopping season (from Thanksgiving through New Year’s) represent the most lucrative period for retailers. But success during these times hinges on being prepared to meet heightened expectations for speed, personalization, and discounts.

This is also when local consumer knowledge pays off. Americans are heavily influenced by sentiment and tradition (often gift giving) during the holiday season. Understanding these cultural patterns allows brands to tailor promotions that resonate, boost conversion rates, and increase customer lifetime value.

4 Takeaways for Selling into the U.S. Market

To optimize your global ecommerce performance in the U.S., follow these best practices:

  1. Enable frictionless checkout

Simplify the payment flow by offering the right mix of credit card options and removing obstacles like 3DS unless absolutely necessary.

  1. Leverage local processing

Route payments through U.S.-based acquiring banks to improve approval rates and reduce declines.

  1. Offer fast, free shipping

Compete with Amazon-level logistics to win on delivery expectations.

  1. Use a Merchant of Record

A Merchant of Record can manage compliance, taxes, and payments while giving your brand the local presence it needs to succeed.


Final Thoughts

Cracking the U.S. market requires more than just offering products. To truly compete, global ecommerce brands must understand every part of their customers’ journey from the initial marketing touchpoint, to how they pay at checkout. When you combine strong local consumer knowledge with seamless payments and fast delivery, the payoff is clear: higher approval rates, better conversion rates, and more loyal customers.

In a market shaped by instant expectations, your ability to localize isn’t a nice-to-have - it’s your competitive edge.

Looking for a Merchant of Record to help your sales in the U.S. and beyond? Reach out.

Want to go deeper on U.S. consumer behavior? Hear firsthand insights from industry expert, Matthew Steinbrecher, in Business Over Borders: Consumer Behaviour in the USA.