4 Best Practices for Cost Effective International Payments
Control how you manage and make international payments.
Does your business need to maximize the value of each payment and create an efficient international payment process at the same time?
We're committed to help you find a cost-effective solution backed by industry best practices and cutting-edge technology to keep your businesses running smoothly. For more information, download CXI's global payment services data sheet.
Innovate your FX payments with CXI FX Now
It's our latest cutting-edge technology tool designed to help you make and manage all your global payments easier and faster. Whether it's paying vendors, international payroll, repatriating funds, liquidity between currency accounts, or managing FX risk, all of this plus more are now at your fingertips.
Check out our video to see all the benefits CXI FX Now can provide for your business. Below you'll see some of the best practices to save your business the most money with international payments.
What are some best practices for cost-effective international payments?
1. Dual invoicing
Pay in local funds eliminating buffers vendors add for rate fluctuation. International vendors usually add a risk padding, or margin, to account for potential negative rate movements on US dollar (USD) which can cost your business.
Not only do they have to account for change in currency value, but they must plan for the rate at which their own bank is going to convert the funds from USD into their local currency.
In order to cover this foreign exchange, paying in USD to foreign suppliers can add up to an additional 15 percent in total costs. This is why paying in local funds by receiving a dual invoice is considered one of the most cost-effective and efficient ways to save the most with international payments.
2. Flexible payments
Create a payment policy reducing to help reduce costs, risks and dedicated resources. Flexibility is key when a corporation is looking to convert their funds back to the country of origin send money around the world. A payment policy sets the framework so you know exactly when using a low cost method like Global EFT is the right payment vehicle or if speed is the highest priority, sending a wire is necessary.
An effective payment policy also helps businesses create stable budgets so cash flow, pricing, and revenue forecasting can be accurate. Using FX hedging tools to minimize the effect of volatility reduces uncertainty which all businesses can appreciate With.
With flexible payments your business can efficiently send manage foreign currency funds by reducing costs, risks and dedicated resources.
3. Account analysis
Uncover fees and mark ups being applied to your current payments.
Do you have an understanding about how much your global payments are costing you? In one study, only 38% of respondents said they believe they are getting a competitive foreign exchange rate when sending cross border payments. Most still stay in the dark and continue to pay high rates and fees than necessary.
Using your recent payment history, a payments analyst can easily reveal the costs, and available savings, that can immediately impact your business.
4. Liquidity provider
Seamlessly transfer cross-currency funds between accounts with lower rates and fees.
Whether it be repatriating funds from other countries, moving funds from a receivables account to operating accounts, or funding business units outside of your home country, liquidity can make a big difference. Make sure you use a provider that offers quick clearing options so you can use the funds as soon as possible, while ensuring your rates are still competitive.
Many businesses don’t realize the additional conversion costs of using the bank they have their accounts with instead of a specialist.
What clients are saying about CXI
Currency Exchange International, CXI, is the leading provider of comprehensive foreign exchange services, risk management solutions and integrated international payments processing technology in North America. CXI’s relationship-driven approach ensures clients receive tailored solutions and world-class customer service. Through innovative and trusted FX software platforms, CXI delivers versatile foreign exchange services to our clients, so that they can efficiently manage and streamline their foreign currency and global payment needs. CXI is a trusted partner among financial institutions, corporations and retail markets around the world. To learn more, visit: www.ceifx.com