5 Tips for Businesses: Optimizing Cross-Border Payment Costs

Introduction

Cross-border business payments don't have to break the bank. With the right strategies and knowledge, your business can save significantly on payment fees and get better exchange rates. Here are five essential tips to help your business optimize costs when making cross-border payments.

1. Compare Exchange Rates Carefully

Don't just look at the fee – the exchange rate markup can cost you much more. PayZen uses the real mid-market rate with a small, transparent fee. Many traditional banks hide their markup in the exchange rate itself, which can cost you 3-5% more than the mid-market rate.

2. Time Your Transfers Wisely

Exchange rates fluctuate constantly. While you can't predict the future, you can monitor trends and choose favorable times to transfer money. Some strategies include:

• Set up rate alerts to notify you when your desired rate is available
• Avoid transferring during major economic announcements or market volatility
• Consider making regular, smaller transfers rather than one large transfer to average out exchange rate fluctuations

3. Understand All the Fees

When comparing money transfer services, look at the total cost:

4. Choose the Right Payment Method

How you fund your transfer can make a difference:

• Bank transfer: Usually the cheapest option, though it may take a few days
• Debit card: Faster but may incur additional fees
• Credit card: Often the most expensive option due to cash advance fees

With PayZen, bank transfers offer the best value. Delivery times vary by destination and payment method.

5. Consolidate Business Payments

If your business makes regular cross-border payments, consolidating payments can save money. Instead of making multiple small payments, consider consolidating into larger, less frequent payments. This reduces the number of times you pay payment fees.

Important: Only consolidate if it's safe and practical for your situation. Ensure you're not exceeding any transaction limits or triggering additional verification requirements.

Bonus Tip: Use PayZen's Business Account for Regular Transfers

If you're sending money frequently for business purposes, consider opening a PayZen Business account. You'll get:

• Multi-currency accounts to hold funds and avoid constant conversions
• Volume discounts for large or frequent transfers
• API access for automated payments
• Dedicated account manager for enterprise needs

Conclusion

By following these five tips, you can save money on international transfers. The key is to be informed, compare your options, and choose a service like PayZen that offers transparency, competitive rates, and low fees.

Ready to start saving? Create your free PayZen account today and experience the difference.