So, you're expecting a payment from an international customer or partner.
What information do you need to provide? How long will it take to arrive? At what point do you need to chase the sender for answers? Will it cost you anything?
There are plenty of questions, not as many clear answers as you might like.
If you're running an international business, this headache-inducing situation probably sounds all too familiar. The truth is international wire transfers can be complex — but only if you don't have the best tools for the job.
So let's look at these complexities in more detail and explore how you can simplify your cross-border payments experience with the right tools.
How international wire transfers work
When you receive a local payment from a customer, it can appear pretty much instantly in your account. But when you're receiving funds from overseas customers, wire transfers are more like international travellers — they need to have the right documents, know their destination coordinates and may need to make stops along the way.
In other words, international wire transfers depend on:
- The origin and destination countries and accounts
- Which currencies are involved
- How many intermediary banks need to process the transfer between sender and receiver (you, in this case)
Receiving wire transfers in your local currency
Let's start with the simpler scenario.
For single-currency transfers, like euros to euros or pounds to pounds, your incoming payment might use local clearing systems or SEPA if you’re dealing in euros. This can be faster and cheaper since there's no currency conversion needed, potentially zero intermediary banks involved, and processing times are often faster as a result.
For example, if your business is based in France and you're receiving euros from a German partner, the process will be simple. Both countries are in the SEPA zone, so there won’t be any currency exchange and the payment won’t need to pass through numerous banks, so it arrives faster.
What information do you need to provide?
Whenever you're expecting a single-currency transfer, you’ll want to have these details to hand:
- Your registered business name
- Your account number or IBAN (International Bank Account Number)
- Your SWIFT/BIC code (although this may not be needed for some regional transfers like SEPA)
- Purpose of payment (often required for larger transfers, for example)
- Some regions may also require local routing information, like sort codes in the UK
But what if the sender typically trades in a different currency from your functional one?
Receiving wire transfers in a foreign currency
For multi-currency wire transfers, the sender’s bank or payment provider will likely use an international payment network like SWIFT — a global messaging system that connects thousands of financial institutions around the world.
If the sender operates in a different currency from yours, the money will need to be converted at some point in the process. This may incur fees in the form of exchange rate markups. The money might hop through several intermediary banks before it reaches your account, each taking an additional fee.
Between exchange rate markups and various handling fees, we can start to see just how expensive international wire transfers get.
The result? The amount that finally lands in your account could be significantly less than what was sent. This is why you should negotiate and agree on key details with your sender ahead of time, like which currency the payment will be sent in and who will cover the fees. There are typically three options to choose from:
- OUR: The sender covers all costs (including receiving bank fees)
- BEN: The recipient pays everything
- SHA: You split the bill (sender pays sending fees, recipient pays receiving fees)
What information do you need to provide?
For foreign currency wire transfers, here's what you'll likely need to share with the sender prior to receiving funds in most currencies:
- Your business's registered name and address
- Your account number or IBAN
- SWIFT/BIC code (since most international transfers use the SWIFT network)
- The specific currency you want to receive (crucial for proper routing)
- Purpose of payment (often required by regulators)
There may be more details you need to provide in certain countries or currencies (like tax IDs or phone numbers), but for the most part, these details should be all you need.
Should you use a bank account or a multi-currency account for international payments?
Understanding how international wires work and which details you need to share is only half the battle. You also need to decide which type of account is best for receiving these transfers. There are three main account types to consider:
- Standard bank accounts: Single-currency accounts you typically open at a traditional bank, denominated in your local currency.
- Foreign currency accounts: Similar to standard accounts in that they're denominated in a single currency, just a different one from your local currency.
- Multi-currency accounts: Hold funds in more than one currency at any given time, so you have euros in your main account and then sub-accounts for each currency you work with, such as dollars and pounds.
For receiving wire transfers in your local currency, a standard bank account works fine. But for additional currencies? Foreign currency accounts can do the job if you only deal in one or two additional currencies. But for businesses that regularly deal in more than two currencies, constantly opening and managing a web of separate foreign currency accounts just isn’t sustainable.
Instead, you're much better off opening a multi-currency account from a provider that specialises in international payments. Here's why.
Avoid expensive and opaque currency conversions
Any foreign currency that lands in your standard bank account will be converted into your local currency at the bank's current exchange rate. Banks often add fees to these exchange rates, which can be as high as 2-5%.
A multi-currency account lets you hold funds in the sender's currency and convert only when it makes sense for your business. For example, you can open a USD account to receive dollar payments, then convert to euros if and when you choose to — entirely on your schedule and usually at a lower rate than your bank's. Or, you may decide to keep the funds in dollars for future supplier payments.
Reduce hidden bank fees
Most banks charge to receive wire transfers — sometimes a flat fee, sometimes a percentage. And while some might be transparent about these transfer fees, they're often quiet about their exchange rate markups, maintenance fees and other hidden costs involved in cross-border payments. To put it simply, you're likely paying way more in fees than you realise, even when receiving payments.
With the right multi-currency account provider, you know how much you'll pay when making and receiving international payments ahead of time.
Simplify your financial operations
Instead of juggling separate foreign currency accounts, you can receive and hold multiple currencies under one roof. This makes it easier to pay suppliers, vendors and partners in their local currencies, receive money from customers and partners in theirs and track your cash flow across these numerous currencies.
For businesses that deal internationally, the choice seems pretty clear. But which multi-currency account provider should you choose?
Why growing SMBs use iBanFirst as their multi-currency account provider
So we've established that multi-currency accounts are the way to go for international wire transfers. But which provider should you trust with your cross-border payments?
Over 10,000 growing SMBs choose iBanFirst as their go-to for international payments — and for good reason. Let's break down what sets iBanFirst apart from the crowd when it comes to handling wire transfers across borders.
Hold, send and receive wire transfers in 25+ global currencies
iBanFirst multi-currency accounts support 25+ different currencies. No more juggling foreign currency accounts or getting hit with steep conversion fees. Access the currencies you need for your international business from one simple yet powerful platform and convert and make payments on your own schedule.
Track international payments in real-time
Are you constantly chasing payments? Do your suppliers have to chase you for updates too?
If you’re sending international wire transfers with iBanFirst, our Payment Tracker gives you detailed, real-time updates so you know exactly where your funds are along the way — just like tracking a parcel! No more mystery about where your money is after you send it. You can even share tracking links with your suppliers and partners, giving them the same visibility at every step. The result? Stress-free, happier business relationships.
If you’re receiving international wire transfers, you’ll get the same level of granular detail if the sender is also an iBanFirst client. After they've sent a payment, they’ll be able to share a tracking link with you that includes the exact same timestamped details. No more follow-up emails, passive-aggressive nudges or wondering where your money is and why it hasn't arrived yet.
Work with real FX experts to manage exchange rate volatility
Currency markets are unpredictable, and sudden shifts can seriously impact your bottom line. While other providers leave you to navigate these waters alone, iBanFirst gives you access to a team of foreign exchange experts who understand your business and can help you implement a winning FX strategy. Need help setting up a forward contract to lock in today's rate for a future payment? An FX expert is only a call away to walk you through it, step by step.
Open your iBanFirst account today
Sending and receiving international wire transfers doesn't have to be complicated, slow and expensive. With an iBanFirst account, you can:
- Hold and receive payments in 25+ currencies without the headaches
- Send payments in 140+ currencies and track them in real-time with complete visibility across borders
- Convert currencies when exchange rates work for you, not against you
- Get expert support from real humans who understand your business and the intricacies of FX markets
Ready to take control of your international payments? Open an account today in just minutes — no account setup costs or monthly fees.
