In international payments, hidden costs can quickly add up, significantly impacting the total transaction cost. Here’s how to avoid them
In today’s globalised world, international cross-border payments are the lifeblood of the modern economy. Whether you’re an entrepreneur expanding your business abroad or a freelancer, sending and receiving money across borders has never been easier. But lurking beneath the surface of these seemingly straightforward transactions are hidden costs that can quietly eat away at your finances.
1. Currency Conversion Fees: Deciphering the Enigma
At the heart of every international payment lies the intricate web of currency conversion. Your client is sending money in their currency, but you prefer it in your local currency. That’s where currency conversion fees come into play. Most banks and payment providers will levy a charge for converting from one currency to another, typically calculated as a percentage of the transaction amount. However, it’s not just about the fee; it’s also about the exchange rate used, which may not be as favorable as the current market rate, sneaking in additional costs.
Imagine you’re a digital nomad who just wrapped up a freelance project. Your remuneration is $1,000 but you end up receiving much less than that amount as SWIFT charges, FOREX costs eat away your hard-earned money. To outsmart these elusive expenses, consider opting for a payment provider that not only offers competitive exchange rates but also minimal fees. Some providers like BriskPe even offer multi-currency accounts that allow you to receive funds in various currencies. These accounts can serve as a financial Swiss Army knife, ready to adapt to any currency challenge. Check out Briskpe.com
2. Intermediary Bank Fees: The Silent Shuffle
Receiving money internationally often feels like a poker game – you’re never quite sure who’s holding the cards. Just as in a high-stakes poker match, there are intermediaries in international payments, and they have their hands out for a piece of your pie. These intermediary banks play a critical role in the process, especially when the funds need to traverse multiple intermediaries before reaching their final destination. Each of these intermediaries will charge a fee, and these fees can quickly add up. To avoid these intermediary bank fees, consider opting for a payment provider with direct relationships with banks in the recipient’s country. This streamlined approach minimises the number of intermediaries involved, reducing your overall costs. It’s like skipping the complicated maze and taking the express route to your destination.
3. Correspondent Bank Fees: The Unexpected Guest
Picture this: Your recipient bank is like an exclusive party where an unexpected guest, the correspondent bank, arrives, uninvited, and demands a fee. These fees are typically a fixed amount and can vary depending on the bank and the payment provider you use. It’s a bit like discovering you have to pay the coat-check attendant after you’ve already entered the party. To escape the grasp of correspondent bank fees, choose a payment provider with direct connections to banks in the recipient’s country. These strong alliances can either significantly reduce or entirely eliminate these unexpected fees, ensuring you’re not blindsided by unwanted party crashers.
5. Delayed Payments: The Price of Waiting
In the fast-paced world of international business, time is money, and waiting can be costly. International payments often take longer to process than domestic ones, and this delay can lead to additional costs, including late payment fees or missed opportunities that can cost you dearly. To guard against the perils of delayed payments, select a payment provider that offers swift and reliable payment processing. Providers like BriskPe even guarantee next-day payment processing, ensuring your funds reach your account as swiftly as a bullet train.
How Can BriskPe Transform Your Business?
For Indian sellers, especially MSMEs, the road to global success has often been hindered by steep transaction fees and currency exchange uncertainties. Take, for instance, a skilled handicraft seller in Jaipur. Every time they export their exquisite creations, traditional financial institutions slice a substantial portion through transaction fees, not to mention the unpredictable exchange rate challenges. These obstacles have limited their global potential. BriskPe stands as the transformative answer these sellers and countless others have eagerly awaited. The platform is designed for streamlined efficiency. With a minimal charge of just 1% (inclusive of GST), BriskPe abolishes the international fees that have historically weighed down cross-border transactions. This signifies that our Jaipur-based seller can now retain a more significant portion of their well-deserved earnings and present their products as a more competitive force in the global marketplace.
Summing up
The enigmatic world of international cross-border payments is littered with hidden costs that can stealthily chip away at your business’ financial health. As you venture further into the realm of global transactions, it’s essential to choose your financial allies wisely. Select a payment provider like BriskPe that not only offers competitive exchange rates, transparent pricing, and expedited payment processing but also keeps hidden fees at bay.
BriskPe is not just a payment provider; it’s your trusted financial companion on the journey of international transactions. With a nominal charge of 1% (inclusive of GST), BriskPe eliminates the traditional transaction fees and high forex charges, giving you the freedom to keep more of your hard-earned money. Embrace the BriskPe advantage and set sail on the smoothest seas of international finance. Your financial voyage has never been this empowered. To get started, click here.
