How Companies Save Money with a Dual Invoice for International Payments
Does your business have foreign suppliers around the world that need to be paid? In a typical international payment scenario, suppliers are very aware of currency exchange rates and volatility risks.
In order to cover this foreign exchange risk, they usually add on a risk padding to account for rate movement on US dollar (USD) invoices. This can add up to an additional 15 percent in total costs.
Unknown or Hidden Costs Found on International Suppliers' Invoices
Additionally, you may also see another two - five percent charge from your bank or credit card company to send international payments. These hidden charges on a USD invoice can easily add up to thousands of dollars for many businesses.
While some might think paying a supplier in US dollars is no big deal, the truth is there’s only one way to understand the real cost your business is paying. The solution is called a dual invoice, which is a real eye-opener for many once they learn how to read a dual invoice, calculate costs, and determine the best method of payment.
How to Read a Dual Invoice to Pay International Suppliers
Below is an example of a dual invoice. Taking a closer look at a dual invoice helps you compare two prices of different currencies side by side. Getting a quote from CXI then allows you to find out if it is better to send payment in USD or in the supplier’s local currency.
What Are the Benefits of a Dual Invoice
After reviewing how to read a dual invoice and calculate costs, now you can clearly make a more informed decision. If you didn’t receive the dual invoice, you’d have no idea of all the savings potential your business can have. It also unlocks the following benefits for your business:
Saves you money and reduces currency conversion costs
Gives you more information to choose the best international payment option
Strengthens your company’s buying power with international suppliers
How to Get a Dual Invoice
A dual invoice is considered one of the most cost-effective and efficient ways to save the most with international payments.
Request a call from our team of international payment experts who can help you fully understand all the benefits of a dual invoice and put in place a strategy to help your business succeed.
Then get your free Ultimate Guide for International Payments whitepaper and unleash the true potential of your international payments.
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