Things to Consider When Making International Payments10 min read

Things to Consider When Making International Payments10 min read

Whether you’re importing merchandise from an overseas supplier or exporting goods to clients worldwide, international payments are likely part of your financial operations. 

However, wiring money across borders comes with its own set of considerations. In this article, we’ll explore some of the most important things to keep in mind when sending or receiving funds internationally as a business.

Making international payments does not need to be complex if you do your research and choose the right partner to help facilitate transfers. 

An innovative international bank like The Kingdom Bank offers digital banking solutions tailored to meet the needs of global companies. 

With state-of-the-art security and multi-currency accounts, The Kingdom Bank simplifies conducting business internationally. Let’s dive deeper into what businesses need to know about cross-border money transfers.

What are International Payments?

Simply put, international payments refer to any financial transaction where money is sent or received across national borders. This includes sending funds to pay overseas suppliers, receiving money from international clients, paying licensing fees to a foreign partner, and more. 

Sending money abroad involves converting your local currency to the recipient’s currency at the prevailing foreign exchange rate.

Traditional cross-border payments were processed through wire transfers facilitated by large commercial banks. However, the traditional banking system had many limitations like high fees, rigid cut-off times, and limited payment options. 

Modern online international banking platforms have streamlined the process with innovative fintech solutions. Now businesses can manage international accounts, track transfers, get live exchange rates, and make secure payments – all with a few clicks from their computer or mobile device.

Who Makes International Payments?

Just about any company doing business globally is likely to need to make or receive international payments at some point. However, certain industries have a higher volume and frequency of cross-border transactions than others.

Businesses involved in international trade, commerce, and outsourcing rely heavily on cross-border B2B payments. This includes import/export companies, manufacturers, retailers, and e-commerce sellers.

Multinational corporations also require global payment capabilities to repatriate revenues, settle payrolls abroad, and pay corporate bills across multiple countries seamlessly. 

Travel companies, logistics firms, financial services, and professional services organizations also need to facilitate frequent international money transfers as a part of their global operations. 

International payments are also used by freelancers, digital nomads, and entrepreneurs selling overseas to expand their market reach.

Which Bank Account Should I Open To Make International Payments?

When choosing an appropriate bank account to handle your cross-border payment needs, there are a few key factors to consider. You’ll want an account with a bank experienced in international finance that offers multi-currency functionality, competitive exchange rates, and low transfer fees.

A great option is opening a business bank account with The Kingdom Bank. As a fully-licensed online international bank, The Kingdom Bank specializes in banking services tailored for global companies. Our accounts can be opened remotely with no minimum deposit or balance requirements.

Businesses appreciate The Kingdom Bank for the ability to hold over 50 major and exotic currencies together in one account. This allows clients to receive money, pay vendors, and manage currency risk across borders seamlessly from a single digital banking dashboard. 

With The Kingdom Bank, international payments can be initiated 24/7 easily from any internet-connected device for quick and secure delivery. Real-time notifications keep account holders updated throughout the transfer process.

Is It Safe To Make International Payments?

Like all financial transactions conducted online, international money transfers do carry an inherent level of risk that needs to be mitigated. When using reputable payment processing providers properly though, the dangers can be extremely minimal. 

Leading international payment platforms employ bank-grade security protocols to encrypt sensitive banking information in transit and prevent unauthorized access to accounts.

Due diligence should be performed to verify the credentials, market reputation, and security certifications of any international banking partner before transferring substantial funds through their network. 

Look for providers with protective services like two-factor authentication, transaction monitoring for fraud detection, protection guarantees against covered losses, and insurance against exchange rate fluctuations. 

A properly vetted digital banking platform takes security and compliance extremely seriously to uphold client trust in their system.

Can International Payments Be Used On Business Bank Accounts?

Without question, yes – international payments are a lifeline for companies doing business globally in today’s interconnected world. 

Modern business bank accounts are equipped by design to facilitate cross-border transactions efficiently and securely through multi-currency functionality and advanced payment gateways. International money transfers allow businesses to:

• Pay foreign suppliers and vendors reliably via bank wire, electronic funds transfer or virtual accounts
• Receive invoices and purchase orders from international clients denominated in multiple currencies
• Deposit incoming funds from sales, contracts or partnerships around the world seamlessly
• Settle payroll or remunerate global contractors working across borders
• Gain more competitive terms and preferential pricing from overseas partners by settling invoices promptly

By opening an internationally-focused corporate bank account, companies gain the control, flexibility and visibility required to manage global accounts payable/receivable across currencies, regions and timezones from a single commercial banking platform. 

With the right international bank partner, international payments become streamlined, cost-effective and low-risk for modern internationally-minded businesses of all sizes.

In today’s globally connected world, internationalization is key to thriving as a modern business. Leveraging innovative cross-border payment solutions unlocks opportunities to scale strategically on a global stage. 

With so many options now available, doing thorough research pays dividends in choosing a trusted banking partner experienced in international finance.

The Kingdom Bank aims to simplify global commerce for companies through their award-winning digital banking platform tailored for cross-border needs.

 For those conducting regular international transfers as part of their sales, procurement, partnerships or payroll operations, exploring The Kingdom Bank could open the door to streamlined global growth. 

Speak to one of our representatives today to learn more about how our tailored solutions can optimize your treasury management in this new digital era of borderless business.