In today’s world, most businesses take place internationally and businessmen often engage in cross-border transactions. This indicates that businesses require an effective international payments solution on which they can trust to handle their money.
What is an international payment?
A financial transaction involving two nations with different currencies is known as an international payment. This form of payment is possible to be made both online and in-branch. International transactions, unlike domestic transfers, require more steps and protections which therefore can take longer to complete. Every business that makes and accepts foreign transactions, especially those that have recently introduced international payment to their clients or have a supplier in another country need to know about international payment solutions.
What you need to know about international payments to help your business
When making any type of bank transfer, your bank will ask for the recipient’s bank account information. This usually refers to their name and IBAN. When making an overseas payment, however, you will be asked to enter a code. This is dependent on both the countries and the currencies.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the world’s largest payment network. A SWIFT code, also known as a Bank Identifier Code (BIC), is a sequence of characters (letters and numbers) used by banks all over the world to identify themselves. It’s a one-of-a-kind code that incorporates the bank’s code, country code, location, and, in many cases, the receiving bank’s branch code.
Making international payments comes at a cost. You may be charged a processing fee for each transaction you make, depending on your bank. These fees are normally set at a certain amount. The amount charged is determined by the bank with which you do your transactions. When making overseas payments, there is also a margin for the foreign currency rate to consider.
It is recommended to conduct extensive research on banks that offer foreign payment services and compare the fees to determine which is the most affordable. A single international payment may not be expensive, but if you are a company that makes these transactions frequently, they can add up.
As a number of businesses are shifting to an international basis by shipping their products and services worldwide to expand their customer base, it is crucial to accept international payments. Utilizing OpenPayd’s international payments solutions, you can expand your business while profiting from it.