Expanding your business internationally means tapping into new customer bases and significantly boosting revenue. Accepting international payments is a critical part of this expansion.

This guide provides a step-by-step process for setting up your business to accept international payments, focusing on methods that ensure cost-effectiveness and reliability to receive international payments.

Why Expand Your Business Internationally?

Expanding your business to accept international payments offers significant benefits. Accessing new customer bases and markets can substantially increase your revenue streams.

A study by McKinsey & Company found that companies with international operations tend to outperform their domestically-focused counterparts by 2.1 times in terms of total returns to shareholders.

A map of the world where different countries present their local currencies and they can accept international payments.

Boost Revenue and Competitive Edge

Offering products or services internationally boosts revenue and helps you maintain a competitive edge. Competitors who already accept international payments are tapping into these benefits, so adopting this capability ensures you remain competitive and stay caught up don’t.

According to a survey by HSBC, 77% of businesses believe that international expansion is necessary for long-term growth.

Engage Global Customers

Accepting international payments allows you to engage with global customers who prefer payment options such as wire transfers, bank transfers, and international credit card payments.

Your business can operate efficiently globally by integrating multiple payment methods, managing currency conversion, and minimizing transfer fees.

A hand with scissors cuts the costs and fees wen accepting international payments.

For example, accepting payments with an experience that feels like local bank transfers can attract customers from different regions, thanks to the ease and convenience of your payment options.

Diversify Revenue Streams

Expanding globally can help diversify your revenue streams, reduce dependence on a single market, and access the international market.

A study by Accenture found that companies with a solid global presence generate an average of 46% of their revenue from international markets. This diversification stabilizes income and positions businesses for long-term success in various economic conditions.

Understanding International Payment Options

When accepting international payments in a B2B context, there are several methods to choose from. Here’s a closer look at the most common options:

Wire Transfers

International wire transfers are a popular and reliable way to accept overseas payments. They transfer funds directly from the customer’s bank account to your own via the SWIFT network.

SWIFT code, an essential piece of information for accepting international payments.

Large or frequent payments are particularly well-suited for international transfers, as they offer a secure and efficient way to move money across borders. This method is ideal for businesses dealing with substantial transactions and needing assurance of timely and safe transfers.

Credit and Debit Cards

Card payments are widely used as international payment methods, offering convenience for your B2B clients. They can simply enter their card details on your website or invoice to complete the transaction.

However, accepting international credit card payments often incurs higher transaction fees than most popular payment methods. This can impact your profitability, especially if the volume of transactions is high. Despite this, the method is helpful for smaller, infrequent transactions due to its ease of use.

Online Payment Gateways

Online payment gateways streamline the process by allowing businesses to accept payments through their website or invoicing system. These gateways are a good option for accepting international payments online, and you can withdraw your funds to a business bank account.

By integrating these gateways, you can offer clients a seamless payment experience, which is crucial for maintaining client satisfaction and trust.

Sending and accepting international payments is essential for businesses looking to expand globally.

Other Methods

In addition to the options mentioned for receiving payments internationally, there are other methods, such as digital wallets. These can be convenient for certain clients and specific transactions where options like a traditional bank transfer are less accessible.

Choosing Payment Methods for Your Business

With numerous options available, deciding on the best payment method for your business involves understanding your target market and their preferred options when they need to make an international payment.

Image of a checklist to define needs when selecting payment methods for accepting international payments.

Here are some factors to consider:

Foreign Exchange Rates and Currency Conversion

Managing foreign exchange (FX) rates and transfer fees is essential for international transactions. Payment providers like Bancoli offer real interbank exchange rates and transparent pricing, which helps minimize fees and reduce costs.

Using Bancoli’s Global Business Account, a multi-currency account, allows for more efficient currency conversions and reduces the impact of fluctuating FX rates on your business.

Transaction Fees and Processing Times

These are two crucial factors to evaluate when selecting a payment method. Credit card payments, while convenient, often come with higher transaction fees that can add up quickly. In contrast, wire transfers typically have lower fees and faster processing times, making them a cost-effective choice for larger transactions.

Funds Security and Compliance

Ensuring the security of your funds is paramount, along with robust security features and strong fraud prevention measures to protect your business money.

Additionally, compliance with international financial regulations, including anti-money laundering (AML) and know-your-customer (KYC) requirements, is crucial. Bancoli ensures fund and account security and compliance with international regulations.

How to Start Accepting International Payments

Once you’ve decided on the payment methods mix, it’s time to set up your business to start accepting international payments. Here are the key steps involved:

Opening a Global Business Account

One of the first things you’ll need to do is open a dedicated bank account for your international transactions.

Bancoli’s Global Business Account offers several benefits over a traditional business bank account. This specialized account is designed to facilitate international transactions, allowing you to accept and manage global payments efficiently.

A globe with foreign currency bills, illustrating global cash flow from accepting international payments.

Benefits of Bancoli’s Global Business Account

  • Currency Bank Account Details: Obtain local bank account details in major currencies like USD, EUR, GBP, and more. This feature helps you accept payments from international clients as if you had a local bank account in their country.
  • Multiple Currencies: Hold, receive, and send funds in over 25 currencies. This flexibility allows you to conduct business with international clients without worrying about constant currency conversion in unique and recurring payments.
  • Competitive Exchange Rates: Bancoli offers real interbank exchange rates, ensuring you get the best rates when converting foreign currencies.
  • Low Fees: Enjoy lower transaction fees compared to traditional bank accounts. This includes reduced processing fees and minimal conversion fees.
  • Account and Fund Security: Bancoli USD Custody protects your business funds up to $125 million, a protection level up to 1000x higher than that offered by regular financial institutions globally. Additionally, military-grade encryption, fraud monitoring, and multifactor authentication safeguard your account and transactions.

Getting Started with Your Global Business Account

  1. Open a Global Business Account with Bancoli by providing the necessary business information and completing the verification process.
  2. Once your application is approved and your account is active, you will have instant access to the default USD account. You can activate your currency accounts by simply clicking a button.
  3. Access your currency account banking details to share them with your clients and start accepting international payments in any of your currency accounts.

Best Practices for Accepting International Payments

Follow these best practices to ensure a smooth and successful international payment experience.

Ensuring Compliance

Complying with all relevant regulations and laws is crucial when accepting international payments. This includes adhering to anti-money laundering (AML), knowing-your-customer (KYC) requirements, and country-specific regulations.

Compliance Checklist

A grayscale image of a hand wearing a suit sleeve and cufflink, holding a magnifying glass. The magnifying glass is positioned in the center of the image against a light blue background, suggesting a careful examination or analysis.
  • AML and KYC Requirements: Collect and verify the necessary information from your customers to comply with AML and KYC regulations.
  • Local Regulations: Familiarize yourself with the regulatory requirements in your operating countries. This may involve tax obligations, reporting requirements, and other compliance measures.
  • Consult with Experts: Work with legal and financial experts to ensure you meet all compliance standards and avoid potential legal issues.

Navigating Currency Conversion and Exchange Rates

Managing currency conversion and exchange rates is a significant challenge when accepting international payments. Bancoli’s Global Business Account offers competitive exchange rates and transparent pricing to help you manage these challenges effectively.

Managing Currency Conversion

  • Transparent Pricing: Bancoli uses the mid-market exchange rate and communicates any fees upfront. This transparency helps you avoid unexpected costs and manage your finances better.
  • Multi-Currency Invoicing: To accommodate international customers, set prices in multiple currencies using Bancoli’s integrated multi-currency invoicing tool. This approach improves customer satisfaction.

Providing Clear Instructions and Multiple Currency Options

  • Clear Instructions: Ensure your customers have all the information they need to send a payment, whether it’s wire transfer details or a link to your payment gateway. Provide clear, step-by-step instructions to avoid confusion and delays.
  • Multiple Currency Options: Bancoli’s integrated multi-currency invoicing tool allows you to offer prices in multiple currencies to cater to international customers.

In Conclusion

Accepting international payments is crucial for businesses looking to expand their reach and increase revenue in today’s globalized economy. By offering a range of payment options, focusing on wire transfers as the most reliable and cost-effective method, you can start tapping into new markets and customer bases worldwide.

To start, open your Global Business Account, which offers low fees, fast transfers, and support for multiple currencies. Bancoli makes it easy to accept international payments and grow your business globally.

Bancoli banner with text "accept international B2B payments efficiently".

Frequently Asked Questions

How long do international wire transfers take?

The processing time for international wire transfers can vary depending on the banks involved and the destination country. On average, transfers take 1 to 3 business days to clear.

What information do I need to provide so that customers can send a wire transfer?

To receive money through a wire transfer, you must provide customers with your bank account details, including your account number, SWIFT code, and bank address. Some countries may require additional information, like an IBAN or routing number.