Turkey local processing and card support

Overview

Turkey is experiencing rapid eCommerce growth, thanks to a series of various improvements across different fields. With half of the country's population having Internet access, the e-commerce scene benefits from over 35 million Internet users. This leads to online transactions made by over 10 million shoppers.

However, online orders in Turkey are still very focused on the domestic market, with only 1 in 5 customers considering international shopping.

Key payment methods

Credit cards are the Turks' preferred payment method, amounting to roughly 90% of purchases. The remaining purchases are paid for with cash (5%), e-wallets (3%), and debit/prepaid cards (2%).

In Europe, Turkey holds the second and third positions (after the UK) regarding the highest penetration rates for credit and debit card usage, with over 58 million credit cards and over 89 million debit cards.

Local processing

Since nearly 20% of Turkish cards do not support international transactions, processing cards locally brings the benefit of a higher conversion rate as well as the option to offer installments leading to an overall increase in market share.

Credit card installment providers

Six loyalty programs present in Turkey give shoppers the benefit of using installments to pay for their purchases: Bonus, World, CardFinans, BankAsya, Paraf and Maximum. The most popular of them, amounting to roughly 80% of the market, are Bonus and Maximum. Starting May 2019, our merchants selling in Turkey can offer their shopper the possibility to pay with locally issued credit cards with installments, to increase their sales.

What 2Checkout offers

2Checkout's local processing support in Turkey provides shoppers with the choice to pay for their purchases with local cards, such as:

• Bonus
• World
• CardFinans
• BankAsya
• Paraf
• Maximum

Shoppers can also use these cards to pay for their purchases in installments, offering them greater payment flexibility. This leads to an increased share in the local market through access to the local cards that do not support international transactions.

Since approximately 35% of transactions are paid through installments, 2Checkout brings an estimated increase in conversion and authorization rates of at least 10%.

3D Secure is mandatory for debit card transactions.

Recurring billing is only supported for transactions paid in full. Manual renewal is available for transactions paid with installments.

Besides payment processing, 2Checkout also covers support and legal issues:

• Customer support
• Risk and anti-fraud management
• Invoicing compliance (snail mail invoices)

Tax and VAT compliance (18% VAT applicable for transactions originating from Turkey) according to Turkey's regulations.