Written by in Business on April 30, 2020
Photo by Kyle Glenn on Unsplash
If you’re looking to make a cross-border payment, there are a number of international payment methods. Payments of this type are increasingly common as economies become more global.
Though, some approaches such as international wire and bank transfers can be complex and expensive if you factor in fees and exchange. Opting to avoid international transactions can prevent you from growing your oversees business and, in turn, your bottom line.
Regardless if you are consistently dealing with international payments or if you only conduct cross-border transfers from time to time, it’s important to have systems and procedures in place so you can cut costs, avoid loss, and ensure security every step of the way.
This list breaks down the benefits of adopting an international payment processor and why that might be the right approach for you. Furthermore, it puts forth an understanding of Shift Connect’s payment processing systems.
Eliminate Hidden Fees
Your business or your customers might be incurring fees during the payment process. In fact, most companies that process large sums or numbers of international receivables are paying far more than they should for transactions. Businesses can be charged flat fees on incoming wire transfers which can be up to $20-50 and often aren’t disclosed until the payment is received.
Rather than walking into each transaction without clarity on the fees, you will incur, payment processors offer solutions to streamline these bank rails and cut your costs. In addition, it gives you the peace of mind to only think about your transactions rather than all of the external factors potentially impacting those funds.
Shift Connect works to remove hidden fees for your customers by processing direct debit/ACH transactions to you rather than through costly international wires. Additionally, Shift removed the flat fees on deposits made into your account. Therefore, you don’t have to pay to receive money. Finally, Shift removes the customer service work for your business, relieving you of potential hours of manual tracking and reconciliation.
Reduce Loss & Improve Foreign Exchange Rates
Unpredictability surrounding foreign exchange has proved detrimental for countless businesses and individuals in the past. Because FX rates have a serious impact on both the payer and the receiver of a transaction, transparency and loss prevention are of the utmost importance.
Payers commonly look for fair and cost-effective FX rates, and businesses look to avoid short payments that may arise due to a payor or customer incorrectly accounting for the FX rate.
Shift Connect shares our FX rates upfront and locks the rate in so your payers are never surprised by currency exchange fluctuations or interchange fees. Our yearly payment volume processed allows the most competitive FX rates which get passed back to you and your payer, helping both parties take on the risk of foreign exchange.
Simplifying Organization, Administration, And Reconciliation
Processes that come with international payments such as Shift Connect relieve the stress and potential issues that arise during tasks such as attributing incoming receivables to customers, paying invoices, and international payment reconciliation. Short payments, manual errors, and the lack of transparency all increase operational costs and impact customer satisfaction. When you partner with a payment processor, they act as a trusted extension of your accounting department, simplifying the process and saving your valuable time.
Shift’s platform has the tools that increase reconciliation efficiencies and reduce the time and effort spent identifying payments and resolving short payment issues. We disburse your business’ payments to ensure you receive the correct amount and customer information every time.
Ensuring You Get Paid In International Payments
Now, this is a big one. If your business struggles with getting international customers to pay on time, the impact is two-fold: first, slow internationals payments can negatively affect cash flow. Second, the uncertainty of your international invoices can impede your business’ growth. International lament processors simplify online payment for your customers and, in turn, you can get paid faster.
Shift provides your business with a number of foreign accounts that your global customers can pay to and will immediately confirm any receipt of funds, removing the need to repeatedly reach out to your customers for confirmation that their funds have been sent. It also gives your customers familiar transaction flows in their expected regional formats so they can pay more easily.
Additionally, you’ll receive status updates every step of the way throughout the payment process.
Removing The Need For Local Bank Accounts
When venturing into the world of international payments, your business may consider creating foreign bank accounts to conduct business in other markets or opening foreign currency accounts to receive payments in a specific currency. As companies compete in the increasingly global marketplace, each region presents different challenges and complexities. Payment processors relieve you from this complicated work.
Shift’s comprehensive network of global and regional banking relationships remove the need for you to manage complex account setup and maintenance. You get to leverage this global network with our platform, instead of spending valuable time and effort establishing foreign bank accounts. Your customers pay in the currency they deem fit and you receive it in your preferred currency. Put simply, customers pay in their local currency and you receive it in yours.
The Addition Of An Effective Compliance Program
If your business operates in multiple jurisdictions for international payments, then you already know that important compliance and anti-money-laundering considerations that need to be addressed in different regions. It is critical for your international payment processor to be up to date with the most current information.
Shift’s global team of security and compliance experts is dedicated to follow and understand the regulator landscape in markets around the world.
Find out what Shift Connect can do for you!
To find out how Shift’s custom solutions can serve and elevate your business, get in touch today.