International Payments For Business | Complete Guide

International Payments For Business – What To Look For?

Have you ever worried about your international payments for business and how to save money on them, then keep reading on.

Any business that operates in multiple markets are exposed to international payments and foreign currencies. And any such business owner can tell that sending money abroad or exchanging foreign currency is an expensive service.

Here is a list of tips that will save your money making international payments for business and key factors you should account for when opening an international business account:

Monthly Account Fee is a fee to tie you up to the provider of your choice and cover the account management costs. Usually the monthly fee depends on the projected volumes of international payments for business. Any reputable PSP these days will provide you an account manager that will be your point of contact in regards to your international business account issues or banking products.

You should evaluate how good and informative the sales person was answering your questions or presenting the international payments platform because that is probably the same person you will have as an account manager. Last thing to add – it is almost impossible to avoid a monthly account management fee but possible to negotiate it lower!

Foreign Exchange Fees – it is strongly recommended to seek after a fixed margin of foreign exchange fee. This margin should be calculated into the exchange rate and always transparently visible on the international payments platform or the mobile app.

In terms of a foreign exchange fee it-self, SMEs shouldn’t be paying more than 0,5% for the conversion in major currencies. Unless the volume of exchanges is very minimal, the provider will not be incentivized to go lower with this fee.

Important to remember, that the international payments for business provider should be able to offer a great variety of foreign currencies. Anything over a 40 different currencies is a sign of a good international payments for business provider. Don’t forget to consider the settlement times of foreign currencies. Anything over T+2 is not a good sign. Usually same day or the next day currency settlement will do the work.

 FX-settlement-date-example
  • Payment Fees highly depend on the volume of transactions per month. The higher the volume the lower the fee.  

But it is important not to forget the speed of transaction where some banks offer up to 5 days transfers other international payments for business providers can deliver the funds to recipient same day or on the next business day. This highly depends on correspondence banking network of a particular PSP. The better then network the better price, speed and variety of currencies. On top of that, a good international payments for business provider is able to make payments to more than 100 countries worldwide.  

It is also highly suggested to ask for the major partners of a PSP because a good PSP is able to land partnerships with the top tier banks such as Barclays, Citi, Deutsche Bank etc.  

  • Account Type – smart business owner should look for a single IBAN that is able to receive and send international payments for business in multiple currencies and in the name of the company. In addition, the good payments provider should be able to offer currency hedges, mass-payments and API connectivity, so that when business grow the payments platform is able to help the business scale. 
  • Client Support – make sure you get a dedicated account manager who is always there to help during the complex transactions or technical issues with the payments platform.  
  • Client Testimonials – make sure to ask what kind of companies a your provider have as clients. It is to find out if any big names are working with them or if the provider has experience serving your industry/sector. That should indicate the reliability of the provider. The less prominent providers are often having technical difficulties, also can be less compliant with regulator and later on receive fines – eventually creating disruptions in the service.  
  • Safeguarding – another important question to ask is where client funds are being safeguarded. You should check the names of the banks and their reputation where the payments provider is keeping client funds at. It should be the top tier banks like Citi, Barclays or Deutsche. If it is an unknown bank in a high risk country like Russia or Latvia, you should avoid such provider at all costs. 

How To Open International Business Account? 

The account opening for international payments for business nowadays is easy and straightforward process. Anyone can do it online without leaving the comfort of ones bedroom.  

We would like to recommend our partners IFX Payments for all your international payments for business needs.  

IFX Payments is a digital bank based in London with offices in Amsterdam, Dubai, Sydney, in business since 2004. IFX can support any business entity based in EEA with the full service package, while global companies can enjoy cheap foreign exchange and international payments for business only. 

Single EU IBAN able to offer: 

  • Ability to receive payments in 39 different currencies 
  • Ability to send payments in 100+ currencies to 120+ countries 
  • Ability to make mass-payments by integrating via API or uploading an excel spreadsheet 
  • Access to effective currency hedges  
  • Exchange of currencies using reasonable and competitive pricing 
  • Process automation via API integration 
  • Cost-effective solution for low value international payments 
  • Payment control and audit trails 
  • Streamlined beneficiary management and compliance processes 
  • Relationship manager ready to help finding best solution and answer questions 

By clicking on IFX Payments you can leave your contact details and one of IFX representatives will contact you directly. 

Conclusion

All in all, digital banks are changing the landscape of everyday international payments for business. The benefits of using IFX Payments are that you are going to end up saving significant amounts of money and time working with them than a traditional bank.  

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