At times, sending money to overseas suppliers and partners can feel like trying to solve a 10,000-piece jigsaw puzzle blindfolded.
First, you've got to figure out what information you need from the recipient (or beneficiary), which can vary depending on where they are in the world and which currency you’re paying them in. You have to contend with currency conversion and even after your funds have been sent, you often have to wait days (weeks, even) with little to no visibility of where your money actually is and when it will arrive with your beneficiary. And don't get us started on the various fees that pop up along the way.
But as the title of this article suggests, there is another way to make cross-border payments. A smarter way.
Read on to explore the different types of business money transfers, discover the best ways to send money internationally and figure out which payment provider is actually right for your business.
The different types of business money transfers
Before we delve further into the nitty-gritty of sending money internationally, let's clarify what we mean by business money transfers. We're usually talking about one of three scenarios:
- You're sending money to another business in your own country (often referred to as a domestic transfer)
- You're sending money to a business in another country (an international transfer)
- You're moving money between your own business accounts
When you’re sending money to another business, as is the case with the first two scenarios, these transfers are typically referred to as payments. Let’s break down the differences between domestic and international payments.
Domestic payments
This one's pretty straightforward. You're sending money to another business account in your own country, using your local currency. Nothing too fancy here:
- It usually arrives same-day or even instantly
- Fees are minimal (often completely free)
- It's a pretty simple process with only basic account details needed
- No currency conversion is required
Think of it like sending a package locally via a courier — quick, simple and usually arrives exactly where it needs to go without any drama.
International payments
This is where things get more complex. When you're sending money to a business in another country, you're usually dealing with:
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Different currencies that need to be converted
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Multiple banks handling your money along the way
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Higher fees at various stages
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Longer processing times — potentially as long as a week
The challenges of international payments
We talk about international payments being more complex — but what does that actually mean for your business? It comes down to three key areas that affect everything from how long your payment takes to how much it costs.
1. International transfers often require currency conversion
A business located in the Netherlands that only trades with local suppliers can simply send a domestic transfer between two Dutch banks and the funds will remain in euros.
But as they begin trading with a supplier in China, the business now needs to find a way to pay this supplier in a different currency (most likely USD or CNY).
The bank or cross-border payment provider they use to initiate the payment will therefore need to convert the funds, typically using the mid-market exchange rate with a markup and/or extra fees added on top.
2. International transfers often take longer to process
Returning to our analogy, while domestic payments are like driving the package from A to B, international payments are more likely to involve connecting flights with multiple layovers.
When you make an international payment, you’re triggering a multi-step process that often involves multiple intermediary banks along the way. These banks get involved when your bank doesn’t have a relationship with your beneficiary’s bank. So, your bank routes the funds through an intermediary bank that does have a relationship with the beneficiary’s bank. If no bank has a relationship with both parties, more intermediary banks get involved to connect all of the dots and keep your money moving.
- Each intermediary bank needs time to verify and process the payment
- Your money only moves during business hours in each country it passes through
- Different countries have different processing systems and regulatory requirements
- Security checks are more thorough for cross-border transactions
So, rather than your international payment being a simple A to B transaction, it's far more common for it to be at least an A to B to C transaction — in some cases even more.
And since banks in different countries operate on their own local schedules and processes and have different local regulations and security protocols, your payment might get stuck in a processing queue. That's why most international payments can take up to 5 business days (depending on the provider, currency and destination) instead of happening near-instantly like domestic payments.
3. Fees are often higher for international transfers
Most domestic payments will either be completely free or cost a relatively low amount. Each country generally has a national payment system to process these transactions, while in Europe there’s SEPA, allowing counties in the EEA to make cross-border payments in euros as if they were domestic and with minimal cost.
International payments, on the other hand, can be far more expensive. Here’s why:
- There are conversion costs and markups to consider
- You may pay a transfer fee to whichever provider you use to make the payment
- Each intermediary bank charges a processing fee
- The beneficiary’s bank often charges a receiving fee
- Some banks may also add additional fees on top
The real kicker? Many of these fees aren't always clear upfront.
How to make international payments
Your payment details will pass through international payment networks like the SWIFT network — the messaging system banks use to communicate all of the relevant details on your payment. This messaging network is what helps your payment reach its destination.
Any international payment will require some basic details from your beneficiary:
- Recipient's full name and address
- IBAN (or account number in regions where IBANs aren’t used)
- Bank's SWIFT/BIC code
- Bank's name and address
Some countries might require extra details (like tax IDs or phone numbers), so it's worth checking the specific requirements for wherever you're sending money.
Beyond the details needed, you’ve got two main types of providers to choose from to actually facilitate the payment: Traditional banks or specialised cross-border payment providers.
Traditional banks vs payment providers
The international payments landscape has changed dramatically in recent years. While traditional banks dominated this space for decades, specialised payment providers have emerged as compelling alternatives — especially for businesses making regular cross-border payments.
Traditional banks
Traditional banks bring some clear advantages to the table. They offer established relationships, proven fraud prevention systems, and the trust that comes with decades of operation.
But this traditional approach comes with significant drawbacks:
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Banks often charge steep fees, with exchange rate markups ranging from 4-6%. If you need to send €100,000 — you could be paying the bank €4,000+ for that privilege, directly out of your hard-earned profits.
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Their legacy systems aren’t very user friendly, so you’ll likely get frustrated with the payment experience or have to call your bank or visit a local branch just to get your payment made.
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Unless you’re sending tens of millions of euros internationally every month, you may get stuck working with their general support teams that typically lack specialised knowledge about international payments and FX, making it harder to get the right help when issues arise.
Specialised cross-border payment providers
Since PSD2 opened up the financial services landscape, specialised payment providers have changed how businesses are able to manage international payments.
While you might be familiar with providers like Wise and Revolut who started with consumer-focused apps, companies like iBanFirst focus on international business payments.
These specialised providers build their entire service around managing multiple currencies and making international payments, which more often than not means:
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Better exchange rates
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Faster processing times, with same-day delivery in some cases
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Better payment tracking that shows you where your money is
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Support teams that actually understand cross-border payments
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Modern platforms that work seamlessly with your existing business tools
For most SMBs making regular, higher-volume international payments, specialised providers are likely a far better approach to take. They'll typically save you both time and money while giving you more visibility and control over your international payments.
Why iBanFirst stands out as an international payment provider
Look, we get it. When you're researching payment providers, pretty much everyone claims to have the best rates, the fastest transfers and the most advanced tools.
But iBanFirst is different. We know the complex challenges SMBs face. That’s why our platform is built specifically for growing SMBs with higher cross-border payment volumes and more currency risk.
Here's what you can do with iBanFirst.
Hold funds in multiple currencies
Making cross-border payments shouldn't feel like solving a puzzle. With iBanFirst, you can send and receive money in 25+ currencies across 180+ countries right from your multi-currency account. And because you can hold funds in different currencies, you get to decide when to convert your money.
Send and receive international payments
An iBanFirst multicurrency account makes it far easier to work with your overseas suppliers and customers than with a traditional bank:
- You can pay suppliers in their local currency
- Receive payments from partners like a local
- Save on costly conversion and transfer fees
Track international payments in real-time
No more mystery about where your money is after you send it. Thanks to iBanFirst's Payment Tracker, you get detailed, real-time tracking showing you exactly where your funds are and which intermediary banks are involved.
Want to transform your supplier relationships? You can share tracking links and give them the same visibility of timestamped updates at every step — just like a parcel! It means fewer emails chasing payments, less stress, and healthier, happier supplier relationships.
Work with in-house foreign currency experts (aka real humans)
With iBanFirst, you get a dedicated account manager who knows your business inside out. These skilled FX specialists work as an extension of your team to help you navigate the complexities of the FX market and make well-informed decisions for your business, like whether to implement fixed, flexible and dynamic forward contracts.
And none of this is gated behind cost-prohibitive monthly subscription plans. Every iBanFirst client gets the same features, benefits and support — €0 setup costs and €0 monthly subscription fees.
Start sending international payments with iBanFirst today
Ready to make international payments actually work for your business?
When you open your iBanFirst account, you'll get access to everything you need to send, receive and manage cross-border payments more efficiently:
- A multi-currency account that handles 25+ currencies
- Competitive exchange rates with no hidden markups
- Real-time payment tracking with shareable links
- Support from actual FX experts who understand your business and can help you navigate FX market intricacies with confidence
Thousands of growing SMBs already trust us with their international payments. Ready to join them? Request an account today.
