Which payment methods are best for international payments?

What is an international means of payment?

Un international means of payment designates any solution that transfer money between two countries usually in different currencies.

Unlike domestic payments, which are made in a single currency and within borders, international payments often require :

• A currency translation

• Un specific banking network (like the SWIFT protocol)

• Taking into account exchange and transfer fees

In the euro zone SEPA transfers allow you to send money in euros between member countries at zero or virtually zero cost .

Outside the SEPA zone, transfers go through the SWIFT network, with fees ranging from €10 to €50 depending on the establishment according to Banque de France .

These payments are used in B2B exchanges, import-export operations and to pay foreign service providers.

When should I use an international means of payment?

International payment methods are not just for large corporations. They also concern SMEs, freelancers and e-traders who work abroad.

Import/export activities

Visit importers and exporters need to send or receive funds in foreign currency.

This applies equally to physical goods that digital products . For example, a French company that buys components in China or sells wine in the United States must use a currency payment .

Payments to foreign suppliers or service providers

Working with freelancers, agencies or suppliers abroad often involves pay in their local currency .

To avoid disputes or delays, it is essential to choose a a reliable, fast and transparent payment solution which minimizes costs and guarantees receipt of the correct amount.

Collection from international customers

More and more online businesses are billing customers outside the euro zone.

In this case, receive payments in different currencies becomes an issue. Accepting the right payment methods facilitates conversion and can make all the difference in the market. commercial conversion rate .

What are the main international payment methods?

There are several ways to send or receive money internationally, each with its own advantages, costs and delays. Here are the most commonly used for business purposes.

SEPA and SWIFT credit transfers

Le SEPA transfer is suitable for euro payments in 36 European countries. It is fast (1 working day) at no extra charge.

Le SWIFT transfer is used for transfers outside the SEPA zone or in foreign currency . It may involve up to 3 banking intermediaries and generate cumulative fees of €20 to €60 according to a BNP Paribas study .

International cheques and bills of exchange

These older methods are still used in some countries. The international check is issued in the currency of the recipient country, while the bill of exchange commits the buyer to pay on a given date.

They offer a certain level of safety but are slow and costly an international cheque can put more than 15 days to be cashed .

Documentary credit

This system is often used in the import/export business to guarantee payment. The buyer's bank undertakes to pay the seller once certain documents have been provided (e.g. invoice, shipping certificate).

It's an effective tool for secure transactions but it implies high administrative costs often between 1% and 3% of the invoice amount .

International bank cards

Using a bank card allows you to pay instantly a supplier or an online tool. However, classic cards often apply a exchange rate plus 2 to 3%. and fixed commissions for each currency transaction.

Payment platforms

Some platforms allow you to manage your multi-currency payments at attractive rates, with IBANs in several currencies and cartes pro and transparent costs . This is the case of Heropay which applies the Visa exchange rate without surcharge and opens up to 5 IBANs included in the free offer .

How do you choose the right payment method?

Not all international payment methods are created equal. To make the right choice, you need to weigh up several factors key criteria which have a direct impact on your margins, your cash flow and the reliability of your exchanges.

Security and payment guarantees

Internationally, the risk of non-payment is higher than local rates. It is therefore essential to choose a payment method that secures funds including :

• Complete transfer traceability

• Bank guarantees (letter of credit, documentary credit, etc.)

• Double authentication or manual validation mechanisms

Documentary credits, for example, can be used to secure an export payment, but with a 1 to 3% cost of the transaction amount.

Fast turnaround and transfer times

Some payment methods are almost instantaneous others may take several days. This has a direct impact on :

• Your treasury

• La receipt of goods or services

• Meeting contractual deadlines

SEPA credit transfers are executed in 24 heures . SWIFT transfers can take 2 to 5 working days according to the intermediary banks.

Charges applied: conversion, commissions, etc.

Fees can have a considerable impact on the final cost of payment. Keep an eye on :

• Visit commissions fixes (sometimes €10 to €50 for a SWIFT transfer)

• Le applied exchange rate often increased by 2 to 3% in conventional banks

• Visit hidden costs taken by intermediaries

Some solutions, such as Heropay, offer a real exchange rate (Visa) at no extra cost, making it possible to reduce the final bill significantly.

Simple accounting integration

A good payment system also makes accounting easier. That's why you should choose tools that :

• Generate clear, automatic receipts

• Integrate into your accounting or ERP software

• Track transactions in real time

Platforms like Heropay, for example, allow you to centralize your multi-currency flows and automatically generate accounting documents which simplifies internal management.

What are the risks of international payments?

Before sending or receiving a payment abroad, it is crucial to identify the following main risks to secure your transactions and protect your cash flow.

Currency and volatility risks

When you pay or are paid in another currency, the exchange rate fluctuations can have a major impact on the final amount. A fluctuation of only 2%. can be enough to eat into a sales margin. To guard against this, some opt for solutions with guaranteed rate or payments in the supplier's currency.

The risk of non-payment and the guarantees required

Internationally collection procedures are longer and more complex . To limit this risk :

• Give preference to advance payments

• Demand for bank guarantees (letter of credit, documentary credit)

• Negotiate secure payment terms as soon as the contract is signed

Risks related to hidden charges and rate margins

Invisible fees are common. Banks often charge a discrete exchange rate margin up to 3% of total amount . What's more, some of them apply reception expenses unannounced, especially via SWIFT.

To avoid this, compare best online banks for pros, with a clear display of costs.

Heropay simplifies your international payments

Heropay allows you to centralize your international payments with :

• Des IBANs multiples

• A Visa Platinum pro card

• Free exchange rate (Visa rate applied)

Whether you're importing, exporting or providing services abroad, the solution tailored to your needs while giving you greater accounting visibility.

You'll benefit from simplified, fluid management and overall control of your cash flow, with no hidden costs or nasty surprises.