Key points
International business payments are transactions sent between businesses, individuals or accounts in different countries.
Common use cases include paying overseas suppliers, settling invoices, compensating contractors and receiving payments from international customers.
International business payment methods depend on transfer value, currency conversion, destination, urgency and compliance requirements.
Costs can include transfer fees, exchange-rate markups, currency conversion charges, intermediary bank charges and receiving bank fees.
Multi-currency accounts and local payment rails can help businesses reduce unnecessary conversions and manage funds more efficiently.
What are international business payments?
International business payments are financial transactions sent between accounts, entities, or individuals in different countries. They are sometimes called cross-border payments and are used whenever a company needs to send or receive money internationally.
Businesses may use international payments to:
Pay overseas suppliers or manufacturers
Settle invoices with international partners
Pay contractors, freelancers or employees in other countries
Receive payments from foreign customers
Move funds between subsidiaries or regional offices
Manage import, export or marketplace transactions
Because these payments often involve multiple currencies and banking systems, they usually require foreign exchange and may involve intermediary financial institutions. This can make them more expensive and complex than domestic payments.
International business payments vs domestic payments
Domestic payments usually move through a single national banking system and a single currency. International payments differ because they may involve currency conversion, operate under separate regulatory frameworks, entail additional checks, and involve more institutions in the payment chain.
Domestic payments | International business payments | |
Currency | Usually one currency | Often involves currency conversion |
Compliance | Governed by one local framework | May need to comply with rules in multiple countries |
Processing time | Typically faster | Can take longer due to banking systems, checks and intermediaries |
Cost | Usually lower | May include FX, transfer and intermediary fees |
Risk | Lower operational complexity | More exposure to FX changes, fraud, sanctions and failed-payment risks |
These differences make it important for businesses to compare payment methods based on total cost, speed, reliability and visibility, not just convenience.
What are the main international business payment methods?
There's no single best way to send money internationally. The right method depends on your business model, destination markets, payment size and whether you are making one-off or recurring transfers.
International wire transfers
International wire transfers are a common way to send business payments abroad, particularly for high-value supplier payments and formal B2B transactions. They typically move funds between bank accounts through secure messaging networks such as SWIFT.
To send a wire transfer, businesses usually need accurate recipient details, including the payee's name, account number or IBAN, and the recipient bank's SWIFT/BIC code. Some destinations may also require a bank address, a clearing code or a reason for payment.
The main drawbacks are cost and speed. Traditional wire transfers may pass through intermediary banks, adding extra fees and delaying settlement.
SEPA and regional payment networks
Regional payment networks can be a faster, lower-cost option when the payment fits a supported geography or currency. SEPA, for example, is designed for euro-denominated transfers across eligible European markets, making payments with the same cost and speed as domestic transfers.
Local payment rails can also reduce reliance on lengthy correspondent banking chains. Local accounts can help businesses get paid in key currencies such as EUR, GBP, USD, NGN, KES, and ZAR, making it easier to work with suppliers and buyers in those regions.
Fintech payment platforms
Fintech payment platforms are designed to make international business payments more digital, transparent and efficient. Many allow businesses to send, receive, hold and manage funds across currencies from one place.
They can be useful for companies making frequent overseas payments, offering improved visibility, integrated checks and potentially faster processing than traditional banking routes. International payments can support businesses that need secure payment rails for global transactions and multi-currency settlement.
Multi-currency accounts
Multi-currency accounts allow businesses to hold, receive and pay in different currencies without converting funds every time money moves. This can help companies that regularly pay international suppliers or receive overseas revenue, reduce unnecessary conversions and manage cash flow more effectively.
A multi-currency wallet can also give businesses more flexibility over when they exchange funds, particularly when rates are changing.
FX tools: Spot transfers, forwards and rate monitoring
Foreign exchange can significantly affect the cost of international business payments. Spot FX allows businesses to exchange currency at the current market rate. Forward contracts can lock in a rate for a future payment and reduce exposure to currency fluctuations.
Rate alerts, market orders and tailored FX solutions can help businesses manage volatility for high-value or recurring payments.
Letters of credit
Letters of credit are often used in international trade when a seller needs reassurance that they will be paid once agreed conditions are met. They are usually issued by the buyer's bank and may depend on shipping, quality or trade documentation.
They can be useful for high-value import or export transactions but are typically more formal and documentation-heavy than everyday supplier payments.
Cards, digital wallets and other options
Cards and digital wallets may suit smaller international expenses, business travel, online tools or recurring subscriptions. However, they are not always the best fit for high-value B2B payments.
International checks, money orders and cryptocurrency transfers may also be available, but checks and money orders are usually slower, while cryptocurrency can introduce volatility and acceptance challenges.
What is the best method for international business payments?
The best method depends on what your business needs from the payment. A high-value supplier invoice may require a different approach from recurring contractor payments or euro payments within Europe.
Business need | Best-fit method |
High-value supplier payment | Wire transfer or specialist international payment platform |
Payments in multiple currencies | Multi-currency account |
Euro payments in eligible markets | SEPA |
Lower-cost payments | Local payment rails |
Managing FX exposure | Spot FX, forwards or rate monitoring |
High-value import/export | Letter of credit |
Small international payments | Card or digital wallet |
"The best international business payment method is not always the cheapest or fastest option in isolation. Businesses need to understand the total cost of each payment, including FX, intermediary fees, compliance checks and settlement visibility. A strong payment strategy gives finance teams more control over how, when and where their money moves," says Ben Prater, Product Lead at Verto
How to send international business payments
The exact process depends on your provider, but most international business payments follow a similar sequence:
Choose your payment method or provider.
Confirm the destination country and recipient currency.
Gather recipient details, such as business name, address, account number, IBAN and SWIFT/BIC where required.
Check the exchange rate, transfer fee and estimated delivery time.
Confirm any compliance details, such as purpose-of-payment information.
Review the payment details carefully before authorising.
Track the payment and keep records for accounting, audit and reconciliation.
Accurate details are essential. Incorrect account numbers, bank codes or recipient information can delay payments, create additional fees or result in funds being sent to the wrong account.
How much do international business payments cost?
The total cost of an international business payment is not always limited to the advertised transfer fee. Businesses may need to account for:
Cost type | What it means |
Transfer fee | Provider charge for processing the payment |
FX markup | Margin added to the exchange rate |
Currency conversion fee | Charge for exchanging one currency for another |
Intermediary bank fee | Fee deducted by correspondent banks in the payment chain |
Receiving bank fee | Charge applied by the recipient's bank |
Urgent processing fee | Additional cost for faster payment delivery |
How to reduce the cost of international business payments
To make international payments more cost-effective, businesses should:
Compare total payment cost, not just the headline transfer fee.
Check whether the provider applies an FX markup.
Hold funds in a multi-currency wallet to avoid unnecessary conversions.
Consolidate smaller payments where appropriate to reduce transaction fees.
Monitor exchange rates before making high-value transfers.
Work with a provider that offers transparent fees and strong payment visibility.
Make international business payments with Verto
Managing global payments should not slow down your business. Verto offers you one streamlined platform to pay international suppliers, hold and exchange multiple currencies and access local accounts in key markets.
Verto gives your finance team the tools to move money with assurance and efficiency, whether you need to reduce payment friction, improve FX visibility or support cross-border growth.
Our platform is fully licensed and certified to meet the highest industry standards, so you can trust us to handle your international business payments with confidence. Register today or speak to our sales team to discover how Verto can support your international payment needs. For more insights, explore the Verto blog.
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