1-888-998-3948


Friday, June 1, 2018

How Do International Payments Work for Corporations

How Does International Payments Work?

 

Most businesses today already know the Automated Clearing House (ACH) and Fedwire operates any payment transfers when they need to send a payment to a business in the US.

What happens when you have a business you need to pay internationally, but don't know where to begin because you want it done in a safe and secure platform that's easy enough for your business to use? 

Currency Exchange International helps many businesses save thousands and enables them to send hundreds of international payments in a safe, secure, and easy to use platform. 

But first, what is an international payment and how does it work? An international payment is a transfer of money that crosses country borders, and involves two different currencies. 

Now, let’s take a look and see some of the different ways in which your international payments can be processed when you have a business you need to pay internationally, and check out our resources page to learn how your business can see rapid results when you choose to partner with CXI.

 

CXI International Payments

 

The Society for Worldwide Interbank Financial Telecommunication (SWIFT)

SWIFT is a key player in services used by banks and financial institutions to transfer messages of international payments from one bank to another since 1973.

SWIFT created an international standard for messaging. Since SWIFT doesn't transfer payments, they have no exchange rates or fees as part of the payment flow.

SWIFT is simply a messaging system that's used to enable the communication of payment information to over 11,000 financial institutions in more than 200 countries around the world to send fast and secure financial communication of international payments between banks.

As of March 2018, SWIFT recorded an average of 30.74 million financial institution messages per day. This trend continues to grow, with an overall year over year increase of 13.4 percent from March 2017 - March 2018.  

The Clearing House (CHIPS) 

CHIPS is a banking association and payments company that is owned by the largest commercial banks since 1853. They operate core payments system infrastructure in the United States.

This is the only private-sector ACH and wire operator in the United States, clearing and settling nearly $2 trillion in US dollar payments every single day. This currently represents half of all commercial ACH and wire volume.

How CXI Makes International Payments Easy for Your Business

 

 

CXI Foreign Exchange Rates

Every time your payment goes from one financial institution to another your foreign exchange rate is being changed. Did you know the foreign currency market is a decentralized market where there isn't one exchange where every foreign currency exchange trade is recorded? Instead, each market maker records their own transactions and keeps it as proprietary information.

The primary market makers who make bid and ask spreads in the currency market are the largest banks in the world. They deal with each other constantly, which is why the market on which banks conduct transactions is called the interbank market. This market contains deals done in the millions and billions of dollars and is not done in a public forum for others to participate in.

This means there is no central entity that governs currency exchange rates. The interbank market is a credit approved system where banks trade based on their credit relationship they share with each other. The larger the forex retail the more favorable pricing it can get from the interbank market.

CXI has built a global correspondent network and leverages its wholly-owned subsidiary Exchange Bank of Canada to provide clients with extremely competitive rates. Investments in technology, building correspondent relationships, and developing an active trading desk with experienced, knowledgeable traders is how CXI delivers value to our international payments customers.

CXI International Payments

The role of payments within a business and how payments technology is seen by businesses themselves is quickly changing. Only businesses who strike a balance between security, minimizing costs, and provide excellent customer experience will survive the international payments landscape.

This is why Currency Exchange International can help your business unleash the true potential of your international payments. Check out our resources page to learn how your business can see rapid results when you choose to partner with CXI.

 

Visit our case studies and resources page now >

Schedule a call to make international payments now >

 

About Currency Exchange International
Currency Exchange International (CXI) is a leading provider of foreign currency exchange services in North America for financial institutions, corporations and travelers. Products and services for international travelers include access to buy and sell more than 90 foreign currencies, multi-currency cash passport’s, traveler’s cheques and gold bullion coins and bars. For financial institutions and corporations, our services include the exchange of foreign currencies, international wire transfers, global EFT, the purchase and sale of foreign bank drafts, international traveler’s cheques, and foreign cheque clearing through the use of CXI’s innovative CEIFX web-based FX software www.ceifx.com

Disclaimer: All product names, logos, and brands are property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, logos, and brands does not imply endorsement.
Posted By Jacquelyn McMullen at 06:00 PM
comments powered by Disqus

Platinum Passport

Travelers: Never miss a thing and be the first to know about CXI branch promotions, travel tips and hot trends.

Currency Insider

Corporations & Financial Institutions: Want to get ahead of the curve for the upcoming week? Get CXI's currency market trend analysis sent directly to your inbox weekly.