How to Reduce the Cost of Processing International Payment Transactions
March 27, 2013 Finance
In order to remain competitive in today’s global market place businesses need to be able to process international payment transactions. It is essential to offer a variety of payment methods to international consumers’ as they tend to vary from country to country. Although the ability to process international payments opens up a business to a wider market and increases sales, many businesses find that their banks charge expensive fees and commission for processing such payments. In this article we will explain how you can reduce the cost of processing your international payment transactions.
Partnering with a currency company
Many businesses are turning to expert currency companies which provide certified payment gateways to process international payment transactions. Partnering with currency companies is much easier for businesses than trying to build a processing network themselves from scratch. Currency companies use advanced technologies to link banking networks across multiple countries so that they work on a single payment processing platform. This transforms international payments into low cost local bank transactions, meaning that they are able to charge smaller processing fees. Not only are their transaction fees much lower than banks, but they also provide better currency exchange rates.
How to choose a currency company
When choosing a currency company to partner with, there are a number of things you need to take into consideration. You should first find out how long a particular currency company has been in business as this will help to establish their reliability. It is also important to check that they are authorised by the Financial Services Authority. This will ensure that they comply with payment service regulations and the FSA’s Conduct of Business requirements. The company you choose should also be registered with HM Revenue and Customs as an overseas money service business.
It is important to research currency companies to check that they are legitimate. Many currency companies will allow you access to their audited accounts and company balance sheet, to give you a better understanding of their situation. It is also essential that they provide insurance against fraud and have direct access to SWIFT. This is the world’s largest payment network for domestic and international trade. Having direct access to SWIFT ensures that companies benefit from receiving faster payments and better security.
Using comparison websites to get a good deal
If you are at a loss of where to start looking for currency companies, you may want to consider using a comparison website. This will evaluate each of the exchange providers, along with the exchange rate they are offering and their international payment processing charges. Some comparison websites even highlight the positives and negatives of each service, giving you a better understanding of the choices available. Using a comparison website will ensure you get the best deal on processing your international payment transactions.
Whilst processing international payments transactions can feel a little overwhelming at times, it is necessary if you want your business to remain competitive on an international level. Although you may think it is much easier to process international payment transactions through the bank, it will usually end up costing you a small fortune. This is money that could be saved using a verified currency company. The important word here is verified and we cannot stress enough how important it is to check a currency company’s credentials before partnering with them. Providing you have carried out your research and gone with a reliable company, you will benefit from smaller transaction fees, better exchange rates and faster payment processing. The fact that so many businesses are turning to currency companies, shows that they must be doing something right!