Paying internationally has become a standard practice in today’s globalized world. Whether you’re an individual making a purchase from another country, a business expanding internationally, or an exporter receiving payments for your services, managing foreign exchange (FX) rates and transaction fees is crucial.
Traditional banking systems and payment providers often charge high fees and offer less-than-favorable exchange rates, making international transactions costly.
However, with the rise of digital payment solutions, there are now more ways than ever to pay internationally without losing money on FX or transaction fees.
In this blog, we will explore seven reliable ways to pay internationally without the burden of excessive costs, helping individuals and businesses save money and streamline their payment processes.
Reliable Ways to Pay Internationally
Here are seven reliable ways to pay internationally while avoiding unnecessary FX charges and transaction fees.
- Use Multi-Currency Accounts
Multi-currency accounts are one of the most efficient ways to avoid high fees and poor FX rates. These accounts allow you to hold and transfer funds in multiple currencies, offering flexibility and convenience.
- Hold Multiple Currencies: Manage funds in various currencies without the need for conversion.
- Competitive Rates: Get better FX rates by avoiding conversions to and from your home currency.
- Reduced Fees: Many platforms offer lower transaction fees for multi-currency payments.
- Better Control: Easily track and manage international payments in the currency of your choice.
Platforms like PayGlocal offer these services, which are especially useful for businesses or freelancers dealing with international clients.
- Leverage Peer-to-Peer (P2P) Payment Systems
P2P payment platforms are becoming increasingly popular for international money transfers. They often offer better rates and lower fees compared to traditional banks.
- Lower Transaction Fees: P2P systems typically charge lower fees than traditional banks.
- Real Exchange Rates: Many platforms, like Wise, use the real exchange rate without the markup.
- Fast Transfers: Transactions are often completed much quicker than traditional bank transfers.
- Simple Integration: Most platforms are easy to use, with user-friendly mobile apps and websites.
Popular platforms include Wise (formerly TransferWise), Revolut, and PayPal for quick, low-cost international payments.
- Use Prepaid Currency Cards
Prepaid currency cards allow you to load funds in various currencies at competitive exchange rates, avoiding excessive FX fees when spending internationally.
- No FX Fees: Lock in a favorable exchange rate before spending, avoiding fluctuations.
- Widely Accepted: These cards are accepted globally, just like a credit card.
- No Hidden Fees: Many prepaid cards come with transparent fee structures.
- Easy Tracking: Track your spending and manage your funds through an app or online portal.
Cards like the Revolut Card and Wise Borderless Card offer great solutions for both personal and business use.
- Use Blockchain and Cryptocurrencies
Blockchain and cryptocurrencies, especially stablecoins, offer a low-cost and fast way to make international payments, cutting out banks and reducing transaction fees.
- Lower Transaction Costs: Crypto payments typically have lower fees than traditional banking.
- Faster Transfers: Blockchain transactions can be completed in minutes, unlike traditional bank transfers.
- Security: Blockchain technology ensures secure, fraud-resistant transactions.
- Flexibility: Cryptocurrencies can be converted to and from various fiat currencies, offering more options for cross-border payments.
Cryptocurrencies like Bitcoin, Ethereum, and stablecoins such as USDT (Tether) are used by businesses and individuals for secure, cost-effective international payments.
- Explore International Bank Accounts with Zero FX Fees
Some international banks and fintech companies offer bank accounts with no FX fees, especially for businesses that need to handle multiple currencies regularly.
- Multi-Currency Support: Hold, send, and receive money in various currencies without converting funds.
- Better Exchange Rates: Avoid the high FX fees charged by traditional banks.
- No Hidden Charges: Transparent fee structures with no surprises.
- Global Reach: Easy to access and use in different countries for international business dealings.
Digital banking services like N26 or HSBC Global Account offer these features, enabling businesses to operate internationally with fewer barriers.
- Negotiate FX Rates with Your Bank
If you rely on traditional banking services for international payments, try negotiating better exchange rates with your bank or payment provider, especially for high-volume transactions.
- Lower Fees for Business Accounts: Many banks offer better FX rates for businesses with high-volume transactions.
- Custom Rates: Depending on your transaction volume, banks may provide customized rates.
- Increased Leverage: Larger businesses often have more leverage to negotiate better rates.
- Direct Negotiation: Speak with a relationship manager to secure better terms.
Banks like HSBC or Citi may offer more favorable rates for business clients or frequent transactors, allowing businesses to save on FX costs.
- Use Currency Exchange Specialists
Currency exchange specialists provide better rates and lower fees than traditional banks by directly bypassing them. They often offer tools to lock in favorable rates.
- Better Exchange Rates: Exchange specialists typically offer more competitive rates than banks.
- Lower Fees: These platforms charge lower service fees than traditional institutions.
- Lock-In Rates: Some platforms allow you to lock in favorable rates ahead of time.
- High Volume Discounts: Businesses that make large payments can get even better rates.
Currency exchange specialists like OFX and CurrencyFair help businesses and individuals save money by offering direct, low-cost FX transactions.
Conclusion
Paying internationally doesn’t have to be costly. With the rise of digital platforms, cryptocurrencies, and prepaid cards, it’s now easier than ever to avoid high fees and unfavorable FX rates.
Whether you’re an individual making an online purchase, a freelancer handling global clients, or a business managing cross-border transactions, these reliable methods can help you save money and simplify the payment process.
For businesses looking for a comprehensive, low-fee solution to streamline international payments, platforms like PayGlocal provide an ideal option. With features like multi-currency accounts, competitive exchange rates, and seamless payment systems, PayGlocal is a trusted payment solution for businesses operating globally.
