As cross-border commerce continues to constantly expand, more business owners are seeking secure, reliable and efficient ways to manage their international transactions. Traditional payment methods like cheques and simple bank transfers have become a thing of the past, as they are often unreliable, costly, and pose safety risks. Today, a wide range of modern international payment solutions are available.
However, choosing the right method of paying your international suppliers can be a challenging task. To help simplify this process, the team at NewbridgeFX has put together this blog post to highlight the top 5 methods for international transactions. We’ll outline the key benefits and limitations of each option, providing you with the information that you need to make well-informed decisions about your international payments.
- International Wire Transfer
International wire transfers are a commonly used method for businesses to send money abroad to their suppliers. It involves an electronic transfer of funds between two bank accounts via a secure network, often also using intermediary banks. Wire transfers are supported by most banks globally, which makes them a widely accepted payment method for paying international suppliers. They’re relatively straightforward since the payment is made directly from one account to another, without the need for any additional platforms.
Whilst wire transfers are a popular method of transferring money overseas, they do have some notable drawbacks. They can be costly, with both sending and receiving banks potentially charging fees, and depending on the number of intermediaries involved, the transfer can take several days to complete. Also the risk of errors, such as entering incorrect bank details, can delay payments and increase costs.
- Opening an Overseas Bank Account
For businesses who need to make frequent payments to their overseas suppliers, opening a bank account in the supplier’s country can offer a strategic solution. It allows businesses to settle payment in the local currency, avoiding high foreign exchange fees and fluctuating exchange rates. WIth an overseas bank account payments tend to settle faster, and suppliers may also prefer to deal with local banks, which can strengthen business relationships. They also allow businesses to wait for favourable exchange rates, before transferring funds from their domestic accounts.
However, setting up an overseas bank account can be time-consuming, complex, and fairly costly. The legal implications of managing an overseas bank account also vary by country, and could add administrative burdens to your payment process. Currency fluctuations can also pose a risk when you’re transferring funds from your domestic bank to your overseas account. The process of opening the account itself can also take weeks or even months, making it a time-consuming option.
- Credit Cards
Businesses can also utilise corporate credit cards to make their international transactions, including virtual and prepaid credit cards. This payment method is relatively fast, with near real-time processing, and credit cards can offer flexibility for making payments in different currencies. Virtual cards, which generate unique 16-digital numbers for each transaction, improve security levels and help to prevent fraud. Sometimes businesses can also benefit from rewards or cashback options on credit card transactions.
On the downside, credit card payments usually come with additional fees, especially for international transactions. Merchants may also charge extra fees for accepting card payments, which can add to the cost and be very frustrating for your supplier. Exchange rates may not always be transparent too, and businesses can end up paying more due to unfavourable currency conversions.
- Online Bank-to-Bank Payment Options
Online platforms like PayPal, Wise, and Stripe also offer businesses a modern alternative for paying international suppliers. These platforms typically come with lower fees, faster transaction times than traditional payment methods, and more competitive exchange rates. Payments are often near-instant and less prone to errors, thanks to the streamlined, user-friendly interface.
However, despite these advantages, not all overseas suppliers are tech-savvy or equipped to accept payments via these platforms. In some cases, these services may not even be available in the destination country, complicating the payment process. Suppliers might also charge processing fees, which can vary depending on the platform and currency used. Another downside is the limited customer support with these platforms; if issues arise, it can be challenging to get immediate assistance. This is in contrast to working with NewbridgeFX, where you have access to 24/7 expert customer support for any concerns, questions or problems that you might have.
- Online Foreign Exchange Specialists / Platforms
Online foreign exchange specialists, such as NewbridgeFX, provide businesses with an efficient way to handle their international payments whilst offering competitive exchange rates. These types of services allow businesses to easily exchange currencies and transfer their funds, via user-friendly online platforms or mobile apps. One of the key benefits of using foreign exchange specialists is the access to their expert guidance, which helps businesses navigate the complexities of international payments. They also typically offer lower fees, or no fees, making it a cost-effective solution for businesses dealing with suppliers abroad.
For example, at NewbridgeFX, we provide tailored foreign exchange solutions through our easy to use online platform, which doesn’t charge you any fees and provides the best exchange rates possible. By using a trusted foreign exchange provider, businesses can ensure that their international payments are handled smoothly, cost-effectively, and with the added benefit of specialised expert support.
Make Safe and Secure International Payments with NewbridgeFX
Paying your overseas suppliers doesn’t have to be daunting or expensive when you choose NewbridgeFX. We specialise in foreign exchange and international payments, providing businesses with a seamless way to pay their overseas suppliers using our online platform. With NewbridgeFX, paying your international suppliers is no longer a complicated task; it’s fast, secure, and efficient.
Our cutting-edge online platform completely simplifies the process of making international transfers and paying your overseas suppliers. It enables you to make transactions 24 hours a day from multiple devices with funds transferred promptly, and allows you to manage your beneficiaries and payments seamlessly, all whilst having real time access to reports.
We support over 45 currencies and facilitate payments to over 200 countries worldwide, ensuring that no matter where your overseas suppliers are located, paying them becomes effortless. Plus we offer the most competitive exchange rates, and charge zero payment fees, helping you save on every transaction and make them as cost-effective as possible.
Contact NewbridgeFX to Learn More about Simplifying Overseas Supplier Payments
If you’re looking to streamline the process of paying your overseas suppliers, get in touch with NewbridgeFX today. You can fill out our online contact form, and one of our team members will reach out to you shortly. Or alternatively, you can call us directly on 0207 871 7800. Our expert team is always here and happy to help too if you have any questions or want further information on our overseas payments.
Experience swift, effortless and protected international payments with NewbridgeFX – your trusted partner for cross-border transactions.