How do you save on international payments?

Here are 5 tips to help you execute efficient and cost-effective international payments or collections and speed up your transactions.

1) Learn How Your Industry Handles International Payments

International Bank Transfers

An international bank transfer, or a wire transfer, electronically transfers money from one person or entity to another in a different country.

This process involves sending funds from one bank account to another, either within the same bank or across different financial institutions.

International bank transfers can be initiated through a person’s bank to transfer money to someone in another country.

Credit Card Payments

Credit cards offer a convenient and agile payment method for suppliers and buyers. However, the convenience may be undercut by high payment processing fees. Additionally, the risk of card fraud makes this payment method more suitable under certain circumstances.

Electronic Payments

International online transfers or remote payment methods, like PayPal or Stripe, serve as good examples. These payment methods are typically fast but expensive due to the commissions charged on the total amounts.

Letters of credit and secured letters of credit are other payment methods worth noting. Both are common instruments in large transactions facilitated by banks.

Woman looking at a computer analyzing cost-effective payment methods for cross-border transactions in her industry.

2) Optimize Your International Payment Services

Electronic payment services, such as SWIFT, offer a unified solution to conduct international transfers. They achieve this efficiency by minimizing the number of intermediaries involved in the global payment process. This consolidation diminishes transaction costs, allowing businesses to realize substantial savings on international payments.

Selecting an optimal electronic payment service requires a thorough understanding of its market reach. For instance, a service like SWIFT proves beneficial when executing transactions between banks in Mexico or Argentina and a U.S. bank. Conversely, the Automated Clearing House (ACH) service is a more practical choice for domestic payments. It’s crucial to evaluate the fee structure of your chosen service to ensure it caters to your unique needs and aligns with your budget.

Infographic of the SWIFT code format

The SWIFT code identifies the receiving bank of an international transfer to ensure the security of the transaction.

3) Strategically Choose the Right Currencies for Your International Payments

Currency exchange rates can dramatically impact the cost of your international payments. Hence, it’s prudent to monitor these rates constantly and select the most advantageous currencies for your transactions. Such vigilance assists in identifying the most convenient times for executing international transfers, particularly when your preferred exchange rate is unfavorable.

Comparing exchange rates among various financial institutions can facilitate informed and strategic decision-making for international payments. Alternatively, maintaining a bank account in a stable currency, such as the US dollar, can offer additional financial security. For even greater flexibility and competitive exchange rates, consider a multi-currency account like Bancoli’s Global Business Account, which can enhance the return on each payment.

4) Engage in Negotiations

One of the easiest ways to save on international payments is to negotiate with your buyer or supplier at the beginning of the business agreement. It is advisable to calculate the transactional amounts according to the agreed payment method and make agreements so that neither party is affected.

Remember that conducting transactions through Bancoli offers you and your business partners the most competitive rates in the market. If you both have a Bancoli account, you can access all the benefits designed to boost your returns, from early payment discounts to Bancoli Reward Points (BRP) to waive certain fees. This way, the platform provides functionalities to enhance your business relationship.

Fees and Rates for International Payments with Bancoli.
Rates in USD. Visit bancoli.com/pricing for more details. *Intermediaries may charge a fee. *For FX rates: See in-app today’s rates on your desired currency pairs.

5) Forecast Your International Payments Costs

A proven strategy for cost reduction involves making estimates before executing a transaction. Being privy to exchange rate estimates and pertinent commissions can prove invaluable. This way, you can foresee the transaction costs per the payment method and allocate funds accordingly.

To save on international payments, Bancoli provides a Global Business Account (GBA), an all-in-one solution that offers a range of features that simplify cross-border transactions, including: 

  • International banking with currency accounts for USD, MXN, EUR, GBP, HKD, and SGD.
  • Seamless international payments for businesses in 10+ currencies to 200+ countries.
  • Access to competitive global FX rates and minimal fees on every transaction.
  • Schedule, issue, and automate tasks with Bancoli AI’s help, streamlining your cash flow.

What’s next…?

Many businesses aim to conduct international business, but not all manage to make their cross-border transactions cost-effective. Our shared information will help you make informed decisions to save on each international transaction.

Join Bancoli and discover how we can assist your business in saving money on every payment.