What's the best bank account for international business payments?
Sounds like a simple question in theory. But if you're responsible for a growing business that operates across borders, you already know the answer is anything but straightforward.
With cross-border payments, you're dealing with conversion rates and markups, transfer fees, intermediary banks, IBANs, SWIFT codes and region-specific account details, all adding complexity. So, you need an account you can trust.
Maybe you've tried managing everything through a standard bank account in your local currency. Or perhaps you're thinking about opening separate foreign currency accounts. Both approaches come with drawbacks — not to mention fees.
So perhaps the more important question is: What is the best method for managing international payments?
In this guide, we'll walk you through everything you need to know about managing international payments for your business. We'll explore what choices are available, whether you actually need a bank account at all and share an alternative approach that could be the answer you're looking for.
First things first...
What is an international business bank account?
An international business bank account broadly refers to an account you can open at a bank that facilitates international payments. The exact structure and details will vary from one account to the next — some will operate in a single foreign currency, others will let you work across multiple currencies.
Here's the thing though: While licensed banks are the obvious provider for these types of accounts, they're not your only choice for managing international payments anymore. Specialised business accounts from cross-border payment providers like iBanFirst can also help you manage international payments more efficiently — without being ‘bank accounts’ at all.
This begs the question...
Do you need a business bank account to send and receive international payments?
The short answer? No.
The longer answer: You absolutely need a business account that can handle international payments — but it doesn't have to be with a traditional bank. Many growing businesses are switching to cross-border payment providers that make international transactions faster, simpler and more cost-effective than traditional banks.
Let's break down exactly how these two approaches stack up against each other.
Traditional banks vs cross-border payment providers
Traditional banks are the financial institutions that operate with a full banking license (or credit institution license), which lets them do everything you expect a bank to do — accept deposits, offer loans, issue credit, make payments and so on.
While some banks do offer specialised accounts for international business, it's unlikely to be their primary focus, just one type of account among many. The result? International payments often come with additional charges — and headaches. You'll typically face:
- High currency conversion fees (often 4-6% per transaction)
- Limited visibility into where your money is during transfers
- Legacy platforms that aren’t the most user-friendly
- Basic support from non-FX specialist teams
Cross-border payment providers on the other hand are specifically built to help businesses move money internationally. While some may be what’s often referred to as neobanks, others operate under specialised licenses that are different from banks — typically electronic money institutions (EMIs) or payment institutions (PIs).
With these licenses, cross-border payment platforms can offer clients multi-currency accounts and the means to handle currency conversion, execute payments and more. Most cannot offer loans or interest-bearing deposit accounts in the same way a bank can.
But there are some key reasons to choose a cross-border payment provider rather than a bank:
-
Their platforms are specifically designed for international payments
-
Transfer fees and currency conversion markups are often much lower than what banks charge
-
You have control over your funds in multiple currencies and can convert between currency accounts as and when you choose
-
You get visibility of payment progress, with some cross-border payment providers even offering real-time tracking so you can see exactly where your money is as it makes its way to your beneficiary
So, if international payments are a crucial part of your business, working with a specialist provider makes more sense than relying solely on a bank that treats these payments as just another service.
Are cross-border payment providers safe?
Absolutely. Just because these providers aren't traditional banks, doesn't mean they're any less secure or reliable. They're still financial institutions that must adhere to strict regulations.
iBanFirst, for example, is regulated by the National Bank of Belgium as a payment institution, which is how we can operate throughout the European Union. We’re also SEPA certified, a member of the SWIFT network and hold AISP and PISP accreditations under PSD2. We've even published a dedicated breakdown of how we protect and safeguard our clients' funds.
The main types of business accounts for international payments
Now that we've established how traditional banks and cross-border payment providers differ, let's take a look at the specific types of accounts they offer.
Standard business bank accounts
First up, a standard bank account in your local currency. You likely already have one of these with your bank and it probably works well for your local business transaction needs. Whether it’s to pay local vendors, manage employee payroll or collect payments from domestic customers, a standard account can handle these tasks smoothly, often with minimal fees.
But this account type isn’t ideal for international transactions. You have no control over exchange rates, so get stuck paying whatever rates your bank offers. You face additional processing fees and have near-zero visibility into how long your payments take to arrive or how many intermediary banks they go through along the way.
Foreign currency accounts
A foreign currency account is similar to a standard bank account in that it contains a single currency — just a different one from your functional currency. For example, you operate in euros and decide to open a foreign currency account denominated in Swiss francs to then pay a supplier in this currency. And this works fine as long as these are the two currencies you trade in.
The challenge comes when you begin working across multiple borders, as each account type still only operates in a single currency. You might find yourself juggling multiple bank logins with siloed account balances and no easy way to truly understand your cash flow in all currencies.
That's why multi-currency accounts are becoming a must-have for international SMBs.
Multi-currency accounts
The moment your business starts crossing numerous borders, everything changes. If you're sending or receiving payments in different currencies, a multi-currency account isn't just nice to have — it's essential to your cross-border activities.
Instead of juggling separate accounts for each currency, a multi-currency account acts as one central hub that lets you:
- Hold, send and receive funds in multiple currencies all from one place
- Convert funds as and when you choose, so you can wait for exchange rates to reach certain targets
- View a consolidated balance across all of your currency accounts
- View your entire payment history across all currencies
Think of it as having a wallet with different pockets for each currency. To pay a supplier in dollars, you access your dollar account. Expecting a payment in euros? Keep it in your euros account until you spend or convert it.
While some larger, international banks do offer multi-currency accounts, it’s more commonly associated with cross-border payment providers like Wise, Revolut and iBanFirst.
When you should use a multi-currency account
Here's why multi-currency accounts are becoming the go-to choice for growing SMBs:
Operate like a local everywhere
With a multi-currency account, you can pay suppliers in their local currency and receive payments from customers in theirs. You simply open a new currency account in the currency you need — which usually takes minutes, not days — then start operating like a local business in virtually any market.
Potential cost savings on international payments
If you're trying to use single-currency bank accounts for international payments, chances are you've already noticed how the fees add up. You're likely paying:
- Exchange rate markups (that aren't always transparent)
- Fixed or percentage-based transfer fees
- Extra charges from intermediary banks along the way (again, not always transparent)
You'll often pay much less in combined fees by using a multi-currency account with a cross-border payment provider. Currency conversion markups are closer to the mid-market exchange rate and additional transfer fees are generally lower. Plus, because you can hold funds in multiple currencies, you don't need to convert money you receive right away. You can wait until the exchange rates work in your favour.
Never lose track of a payment again
If you're trying to juggle multiple foreign currency accounts, potentially across multiple banks, it's easy to forget which account you sent a payment from, or which account you're expecting a payment to land in.
With a multi-currency account, everything is under one roof. You don't need to channel your inner Sherlock Holmes just to track down the details for a single payment — it's all right there for you.
And some cross-border payment providers like iBanFirst offer detailed payment tracking so you can keep tabs on where each payment you've sent is along its journey, which intermediary banks it's being processed by and so on.
Why 10,000+ international businesses use iBanFirst
Numbers tell a story. Over 10,000 companies trust us with their international payments and FX risk management needs. Here’s why.
- We've built our platform specifically for SMBs that trade internationally.
- You can open accounts and hold funds in 25+ currencies, receive payments from international customers in their local currencies and make payments to suppliers and partners in theirs.
- You see the complete cost upfront — no opening fees, monthly subscription costs or surprise fees appearing after transfers.
- You can track your payments in detail every step of the way, so no more wondering if a payment has arrived or why it's been delayed. You can see when the money left your account, how many intermediary banks are involved, and when it arrives with your beneficiary.
- You can also share tracking links with your beneficiaries so they can follow payments as well. That means no more invoice chasing, fewer back-and-forths, and happier business relationships.
- You have a dedicated account manager to help you establish an FX strategy that works for your business and set up fixed, flexible and dynamic forward contracts.
Get started with iBanFirst today
If you're looking for a partner who truly understands international trade, can simplify cross-border payments and ensure you keep more of your profits, iBanFirst is that partner.
Open your account today and join over 10,000 SMBs already managing their cross-border payments with us.
