Why International Payments Need Currency Exchange?
If you’ve ever been looking to exchange currencies for payments cheap, then please keep reading on. We will be providing a full guide on where and how to convert your currencies.
Most of the international payments need currency exchange as those payment destinations operate on their own monetary system. So first the local currency is needed to make a cross-border payment.
In addition, if you would send cross-border payment in your local or international currency, it might be hard to deliver. Or such payment could be converted automatically by the recipients bank making the end value of transfer even lower.
What To Look For When Choosing Currency Exchange Partner?
Anyone would agree that it is inconvenient to exchange currencies with one bank and pay using another. That consumes extra time and even costs. Here are few tips for what to look in your provider:
- All in one place. The best solution is to have FX and payments in one place. All your payment matters handled in a single platform will guarantee the maximum convenience and user experience. On top of that, it will save you time.
From a commercial perspective, if you bring your currency exchange and payment operations to one provider, it will mean more business for them. And more business will get you better conditions.
- Fixed pricing. You should seek for a fixed margin that is calculated into the visible exchange rate. In addition, if you go for the exchange and the payment as one package, it is also worth to seek fixed pricing for payments.
Usually pricing highly depends on the volumes and frequency of transactions. So more transactions you have, the better pricing can be.
- Speed. It is recommended to find out what is the time for currency settlements and payments. A good provider is able to exchange the currency and deliver to the recipient in under several days.
A good provider will also be able to guarantee the exchange rate and payment success. So you should look for such commitment too.
- Automation. Automation is helpful if there is high frequency of transactions. Usually provider are able to integrate via API that will help to automate clients processes and reporting. In addition, that would also include mass-payments.
How To Exchange Currencies For Payments?
Now you know what you should look for. But in order to make payment and FX, you need to have a provider for that. We are glad to recommend a payments specialist – IFX Payments.
IFX is supporting various businesses with foreign exchange and payments solutions since 2004. They are able to offer payments in 80+ currencies and 100+ countries. On top of that, IFX provide API and mass-payments solution, which is a part of any automation.
Most importantly, IFX will be able to provide you with best in market pricing conditions. More about IFX Payments and their solutions here.
All in all, it’s simple – the best way to handle your currency exchanges for the international payments is to have a single provider. All your banking needs in one platform.