Today’s global online marketplace means that businesses need to have international payment solutions that allow for more business to be done beyond the local borders. By accepting multi-currency, you will ensure your business is able to handle growth into worldwide markets and the international cash flow that comes with it.
It is usually necessary to work with a bank to handle transactions that involve multi-currency. In general, North American banks are the most expensive in the world when it comes to handling international transactions. However many business owners are so busy handling the day-to-day of their business that they simply don’t pay any attention to the charges associated with international transactions. We’ve also found that many banks aren’t very transparent when it comes to the fees they issue. For example, you might find that some banks can charge fees for even small payments that involve multi-currency, meaning that for a payment as small as €10,000, your business could lose as much as one thousand U.S. dollars.
Where Do The Fees Come From?
When handling international payment solutions it is common for U.S. banks to charge a fee ranging between $40 to upwards of $65 related to for outgoing wire transactions. Banks also don’t typically offer very good exchange rates. In fact, this is usually the biggest contributor to the high transfer costs for exchanging multi-currency. When compared to other banks around the world, U.S. banks charge high exchange margins, which sometimes end up costing more than 5 percent of the total transaction.
How Can You Get A Good Deal?
Make sure you take the time to go over your bank statements carefully to see the amount your bank is charging your business for international payment solutions. If you find that this information is unclear, be sure to call your bank and find out what their multi-currency fees are.
You can also look for other options that might offer a better exchange rate. For instance, QuickBooks offers several multi-currency apps that can work with the software to handle all the postings, which can reduce fees and sometimes offer lower rates on the exchange.
Always do your due diligence when looking into international payment solutions, so that you can fully aware of all international transaction charges. When you have a better handle of international payment options, you will be positioning your business for greater success in the global market.