Cross-border payments are meant to connect businesses globally. However, for many they become a source of frustration, unexpected costs, and stress. To understand the real challenges people face everyday, we asked business owners and finance leaders to share their worst nightmares with cross-border payments. We wanted to hear real incidents and pain points people often face and go unnoticed. What emerged were stories that were sometimes frustrating, sometimes shocking, and always enlightening.
When payments take too long
“A $10,000 payment to a supplier was delayed for three weeks due to an incorrect SWIFT code for the intermediary bank, resulting in a manual hold. This issue was not communicated until the client cancelled the order.” - Anonymous source.
Delays like these are more than just inconvenient, they ripple across teams and partnerships. One late transfer can disrupt the supply chain and impact client trust. For businesses that rely on timely payments to maintain inventory, fulfil orders, or meet contractual deadlines, even a few days’ delay can trigger a domino effect of losing clients to credibility in the market.
Frustrations with currency exchange rates
“During a five-month stay in Mali last year, I encountered a significant challenge with currency exchange. The official rate of ₦1 Nigerian Naira to 2.7 Mali CFA made direct conversions inefficient. I often resorted to the black market, locating Nigerians to exchange Naira from my local account for CFA. This process was incredibly tedious and resulted in me spending more Naira for a smaller amount of CFA, making it a very negative experience.” - Anonymous source.
Inefficient or opaque currency conversion is a surprisingly common source of pain. Businesses often end up losing significant revenue due to lack of rates visibility with the traditional banks and additional hidden margins. These instances highlight the compounding impact of conversion issues. While individual small losses might seem insignificant when focused on immediate local cash flow needs, they ultimately erode profits and consume valuable time that could be better spent on productive tasks.
Navigating regulatory hurdles
“Our business trip to Zambia was unfortunately plagued by 100-degree heat. While trying to buy gifts, we encountered payment issues. We waited in line, attempting to get money, and the tar road I was standing on literally began melting under my feet. We never made that payment. We drove over 50 minutes only to find the ATM was also not working. We returned to South Africa and only paid the poor lady four weeks later when we went back to Zambia.”
Navigating a foreign country where you don't speak the local language presents enough challenges. When you factor in the complexities of foreign currency, you're faced with a barrage of jargon and regulatory obstacles. While regulations are necessary, their lack of transparency and ease of navigation can leave you feeling lost in a maze with no clear direction. This real life example also highlights the poor visibility of options and lack of payment methods in different countries.
Why do FX fails happen?
Looking across these stories and many others that are pouring in, a few patterns emerged about failures in traditional payment and banking processes.
These include:
Unpredictable delays are common, even for routine transactions
Hidden costs silently erode margins and profitability
Poor currency conversion adds unexpected losses
Lack of transparency lead to stress and uncertainty for business operations
The increasing digitisation of payments brings these issues to the surface. Addressing these challenges is not just about improving efficiency, we need to empower businesses to operate globally with confidence. At Verto, we believe that cross-border payments should be a driver of growth, not a source of stress. We are committed to solve your payment woes and break the myths about cross-border payments being a nightmare.
Ready to transform your international payments? Learn more about how Verto can help you navigate the complexities of global finance and unlock new opportunities for your business. Visit Verto Today
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