Why is it important to set up local Stripe accounts?

Setting up local Stripe accounts is important primarily because it increases the authorization rates for international transactions. When businesses process payments in the local currency and through a payment processor familiar with the local market, they often see higher success rates in transaction approvals. This occurs due to various factors, including the familiarity of local banks and customers with local payment methods, as well as increased trust and reduced friction associated with local transactions.

In international settings, transactions can encounter various hurdles such as currency conversion issues, additional fees, or unfamiliarity with cross-border payments. By establishing local Stripe accounts, businesses can mitigate these challenges effectively, leading to more successful payment authorizations and a smoother customer experience.

The other points, while relevant to payment processing, do not capture the primary advantage of local Stripe accounts in relation to increasing authorization success.