What Is The Migration About?
Glopal is transitioning in September to a more advanced Payments solution that will allow a more robust reporting and will allow you to be paid-out on a weekly basis.
Our new solution cannot be implemented unless we migrate both Payment Service Providers (PSPs) and PayPal platforms. These 2 migrations will happen rather simultaneously in order to ensure little to no disruption to our service. Prior to migrating, there are 2 key actions to be taken by our merchants, all via our Glopal Merchant Account:
- For PSPs, it is essential that each merchant perform its KYC
- For PayPal, it is crucial that each merchant connects its own PayPal account
With the peak season being right at the corner, it is important to complete the migration in due time.
Let’s make it happen!
What Will It Change?
Find below a comprehensive summary of the changes.
| Overall | Before | After |
| Payouts |
Manual Bi-Monthly |
Automated Weekly on Mondays |
| Reporting | PSPs + PayPal data in 1 report | No consolidation between PayPal and PSPs reports.* |
| PSPs | Before | After |
| Disputes handling | No change, Glopal handles PSPs disputes on behalf of merchants | |
| Available payment methods |
Credit cards Apple Pay PayPal Klarna GiroPay |
Credit cards Apple Pay ** |
| Payment fees | No change | |
** note that Glopal will continue working on adding additional payment gateways in order to expose as many relevant payment methods as possible to your international shoppers. This includes Klarna among others.
| PAYPAL | Before | After |
| Disputes handling |
Glopal handled disputes Buyer’s money used to transit via Glopal’s PayPal account which gave the possibility to Glopal to handle disputes on behalf of our merchants |
Merchants handle disputes via their PayPal’s account. Glopal Support team remains available to assist with disputes related cases (support@glopal.com) |
| Available payment methods | PayPal via PSPs |
PayPal*** PayPal Credit (BuyNow,PayLater) |
| Payment fees | Up to 3.9% | 0.5% |
*** note that PayPal is now required to be connected directly from the merchant's PayPal account. As a result, Glopal will only take 0.5% payment service fee. Paypal will charge transaction fees on top of the 0.5% service fee.
Why Do I Have To Pay Glopal And Paypal Transaction Fees?
Glopal Checkout implements various Payment Service Providers and will continue adding some new ones to expose as many relevant payment methods as possible to your international shoppers.
PayPal has pushed Glopal for a direct integration with its services asking merchants to connect with their own account so that it can perform KYC process and operate transaction payouts directly. This is not our decision but the payment facilitator integration that Glopal has to respect.
Like all transactional platforms, Glopal charges payment service fees for payment methods over which it has no ownership. For more context, Shopify charges 0.5% service fees for stores who use third party payment providers.
What Do I Have To Do As A Merchant To Connect PayPal?
Step 1: Connect to your PayPal account via your Glopal Merchant Account
- Go to your Merchant Account
-
Go to Payments tab and click on Connect PayPal account
A pop-up window from PayPal will appear and you will be asked to log in to your PayPal account.
(NB: If you don’t have a PayPal account, you will have to create one via www.paypal.com)
Step 2: Allow international payments in your PayPal account
You can follow the instructions in our help center article to help you make the necessary changes
What Do I Have To Do As A Merchant To Complete Payments KYC?
The Know Your Customer process is a requirement by our payment service provider and ensures all our merchants are vetted and consequently allowed to receive international payments. This is mandatory to continue doing business with Glopal.
Find below the steps to complete your KYC:
Step 1: Go to your Merchant Account -> Settings -> Payments 🔗https://account.glopal.com
Step 2: In section “DEFAULT PAYMENT METHOD”, click on “Update details”
Step 3: A pop-up window from our Payment service provider will appear; follow the steps to fill in your KYC
You will find at the end of this article the most common blockers our merchant faced when undergoing the KYC process, we hope it will be helpful to you.
What’s Next?
1.The End of Manual Payouts
Glopal is moving ahead with automated payouts in September. Migration will take place gradually, in batches.
Note that from *October 13th 2023 onwards , payouts will be made only to merchants who have completed their PSPs’ KYC (this is a legal requirement re-enforced by our payment service provider and cannot be treated with any exception) and connected their PayPal account via Glopal merchant account page.
*Last payouts sent on October 13th will include transactions until the 9th of October
You may think: “hold on, I don’t want to connect my PayPal account to Glopal’s checkout”
And you are not obliged to, but do you really want to prevent your international shoppers from using PayPal as a payment method? For the record, PayPal represents 30% of our merchant’s transactions.
IMPORTANT: If you do not wish to connect your PayPal account and cease to offer this payment method to your buyers, please notify us at support@glopal.com
2. Introducing The Account Reserve Mechanism
What is it?
The account reserve is a mechanism that we have implemented as a result of the migration to our new Payment Platform. A reserve is a temporary hold on a portion of a business's funds, used by payment processors like Glopal to cover potential losses from disputes and refunds. The size of the reserve is based on the level of risk associated with a business, considering factors such as industry conditions, payment activity and financial stability. Reserves are typically necessary because payment processors like Glopal are responsible for handling disputes and refunds that arise when businesses are unable to fulfill their orders.
How does it work?
Our merchants' funds are now collected by our Payment Service Providers (PSPs) and stored on our PSPs “balance” accounts. We, Glopal, then request our PSPs to sweep money off of those accounts, to be deposited onto our merchants bank accounts. In order to be able to cover for potential refunds that arise from our merchants' daily trade activities, we are keeping a portion of the merchants funds that are available on such balance accounts, which will not be transferable to their bank account. We call this the " account reserve".
The frequency of the sweeps from balance accounts to bank accounts is either weekly or monthly, depending on what has been agreed with each merchant. By default it is set to a weekly frequency.
For example, a merchant has:
- 10,000€ on a balance account.
- 1,000€ set as a reserve.
The merchant will only be able to transfer 9,000€ to their bank account.
It’s also important to note that merchant's funds are allocated first to fill up the account reserve; once the reserve is fully funded, the remaining merchant's funds are available for payouts.
How is the reserve amount setup?
The size of the reserve is based on the level of risk associated with a business, considering factors such as:
- industry conditions
- payments and refunds activity
- financial stability
This value is dynamic and will be automatically reviewed and if necessary adjusted on a monthly basis by our system.
For new merchants, the reserve will be set based on a set of information such as GMV forecast and the type of industry the merchant operates in.
FAQs PayPal
Q: Now that our PayPal account is directly connected to Glopal’s checkout, will I receive instantly the money on my account every time a transaction is made?
A: Yes, in general it should be instantly visible in your transaction report in PayPal. However, this depends on the PayPal contract and the settlement speed you've agreed with PayPal.
Note that PayPal transactions will be visible in your Payout report each week, like all other transactions.
Q: When will you start charging us the PayPal payment services fee (0.5%), instead of the 3.9% transaction fees rate?
A: As soon as you will be migrated to the new Payment platform, the PayPal payment services fee will be automatically applied in place of the transaction fee rate. (NB: this will of course apply only if you have connected your PayPal account)
FAQs PSPs KYC
Q: When I click on the “update details” button, it loads but nothing happens.
A: Ensure your browser allows pop-ups by enabling it in your browser settings
Q: Why do I have to provide my social security number? (US bases merchants)
A: Based on your country of registration, the KYC process differs depending on your country's regulations. Note that as a US merchant, you have the option to either provide your security number last 4 digits or upload a copy of your ID.
Q: I can’t log in to the Glopal Merchant Account with my email address. The reset password option doesn’t work.
A: Only an authorized user will be able to log in. We invite you to contact the administrator of your Glopal Merchant Account (this person belongs to your organization). In case you are unable to identify this person, please contact support@glopal.com for assistance.
Q: I have completed this process. I am not sure why you’re emailing me again?
A: if Glopal email you again is because your KYC is partially completed. One of the most commonly found confusion is coming from the “decision makers” step.
Please ensure you add the decision makers for each of these roles: owner, controlling person, and signatory. The same person can be added to all roles.
FYI, a properly completed KYC would show this message on your Glopal Merchant Account:
Q: Our store name on Glopal is a trading name (we have a trademark in this name) but our legal company name is different. How do I change this?
A: When clicking on update details, a window should open redirecting you to the below screenshot where you can click on company details and then change the company's legal name.
Q: I uploaded a bank statement but received a notification that the branch code didn’t match the one on the bank statement.
A: As we cannot access the document you uploaded, we invite you to verify the documents are in line with information you filled in for the KYC.
Q: I am legally registered in the US but our logistic partner acts as our agent in the EU and UK. They are our fiscal representative and we have EU VAT and UK VAT numbers they file on our behalf. Should I fill the KYC using our US legal entity data or our agent’s data?
A: For the KYC, only the information related to the legal entity is of interest. The KYC data should match the bank account holder data.
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