By Henry Williams on Small Business UK – Advice and Ideas for UK Small Businesses and SMEs
No matter how small your business, it’s never been easier to reach a global marketplace of customers.
But there are hidden costs to making and taking international payments that can unnecessarily dent your margins.
You can’t avoid these fees completely, but there are a variety of global payment services that can help you cut costs without cutting your reach.
Whether you’re an importer or exporter, or have overseas customers or employees, This page will explain the best international payment solutions for small businesses that allow you to avoid higher fees when trading globally.
Why do international payments cost so much?
Traditionally, small businesses have relied on their banks to make international payments. This is expensive because the bank passes on the hidden cost of currency conversion – the difference between the exchange rate they bought the currency for and the final exchange rate – to you, on top of a host of other fees.
Indeed, banks have taken advantage of this lack of transparency to charge small businesses over the odds for international payments.
But it doesn’t have to be so expensive. Here are some ways you can avoid unnecessary charges.
Use