You have business transactions going overseas.
You finally achieved your goal of having your brand’s global outreach touch its peak.
Yet, the banking hassle that comes with making international business payments might still be haunting you and that is why you are here.
To help you navigate the tedious processes in an international business transaction, we break down everything you need to know- what international business payment essentially means, what are your different options and how to go about doing it.
International business payments involve the movement of funds between accounts located in different countries.
International business payments commonly involve different currencies, with foreign exchange operations.
The significance of international business payments cannot be overstated.Without such transactions, international trade would be impossible.
The seamless flow of funds across borders enables businesses to engage in international collaborations, fosters economic growth, and empowers individuals to participate in the global marketplace.
International business payments offer various options for execution. Bank transfers and card payments are generally what , involving currency exchange. Meanwhile, alternative methods like cryptocurrency, mobile payments, and e-wallets are gaining prominence as well.
Wholesale payments are transactions conducted between banks and financial institutions, serving as a foundation for consumer and business operations.
This category of payments encompasses activities such as borrowing, lending, and foreign exchange. Wholesale payments also play a crucial role in facilitating imports, exports, and market trading for governments and corporations.
Retail payments encompass transactions between businesses and consumers, covering a wide range of activities including e-commerce purchases and employee salary payments.
Put simply, any transaction that is part of our daily routine can be classified as a retail payment.
Historically, banks have played a major role in facilitating international transfers. Business owners would provide their international bank account details to authorized bank representatives, who would then initiate SWIFT transfers. Bank transfers have traditionally taken 1-5 business days for payments to be delivered.
Fintech companies play a vital role in assisting firms with international business payments. Here's how fintech helps businesses in this area:
Streamlined Payments: Fintechs provide digital payment solutions that simplify and international business payments.
Faster Transactions: Leveraging advanced technology and payment networks, fintech enables faster settlement of international business payments.
Compliance Support: Fintech platforms integrate compliance checks to ensure businesses meet anti-money laundering (AML) and know-your-customer (KYC) requirements.
With Karbon by your side, businesses can unlock a treasure trove of opportunities, accepting payments from over 165 countries. Gone are the days of complicated currency conversions and hefty exchange fees.
Karbon has cracked the code, providing a seamless, hassle-free experience for international business payments. It's time to embrace a world of limitless possibilities, where international payments are no longer a challenge
1. Is it necessary to have a business bank account with Karbon in order to initiate an international payment?
Answer: You do not need to have a current account with Karbon to make an international business payment. If you are conducting a transaction from any of the RBI-recognized banks such as ICICI, AXIS, HDFC, or others, your payment will still be processed seamlessly.
2. How long will it take for an international payment to get fully processed?
Answer: If you are making a payment to a vendor listed in our historical transaction records, we ensure a quick transaction time of as little as 24 hours (provided all required documents from your company's end have been provided). However, for first-time transactions with new vendors, the processing time may take up to 3-5 working days.
3. What are the charges associated with making an international business payment?
Answer: Karbon provides transparent disclosure of all fee components, including form 15 CA 15 CB, SWIFT fee, NOSTRO fee, and more. Contact us now to find out the markup fee you are eligible for!
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