What are cross border payments? 

Whether you’re looking to score a gig in international markets, expand your business internationally, or simply purchase something from a business halfway across the world, you’re likely to be familiar with cross-border payments. Cross border payments, or international payments, are, of course, payments made by a business or customer to someone in a different country. With our industries worldwide transcending boundaries, brand visibility and reaching customers are now the primary concerns. Seeing local markets go global, you might be tempted to sell your products across borders. 

But before you board this train, it is best to have a basic idea about multi currency payments.

Accepting multi currency payments 

Expanding your transactions doesn’t just make it easier for foreign customers to make payments to your website using Visa or Mastercard; there is more to it than what meets the eye.

Firstly, transactions in multiple currencies grant you more (and happier) clients and fewer chargebacks from cross-currency pricing conflicts. Imports, exports, or any kind of global business are made much easier.

Buyers would love to have it easy by getting to know how much they will be charged for their purchases without calculating exchange rates and guessing the markup fees. The more transparent you keep things, the better seller you seem.

Besides, you can save administrative costs on product returns. 


Countries have specific reporting and accounting demands that sellers are supposed to obey. This leads to companies that sell products or services overseas function with complexity in their accounting systems. MNCs are expected to address challenges like:

  • Turning foreign currencies to their local currency.
  • Producing consolidated reports using a single currency type.

Before setting up multi currency payments

Before you set sail, the ship of foreign payments, here’s what to consider:

  • Determine the type of restatement you want to employ

This involves turning one or more currencies local one to deliver accurate consolidated reports. This system is used to remove fluctuations in currency exchange rates over time for comparison purposes).

  • Determine the ledger types

These will probably include the AA (actual amounts) ledger for transactions in the local currency, CA (foreign currency amounts) ledger for foreign transactions, and the XA (alternative currency) ledger for the detailed currency restatement method. 

You can implement additional ledgers, depending on your needs.

  • Determine how you will post multinational currency balances

There are mixed balances that do not separate transaction amounts into distinct currencies, and currency balances separate the transaction amounts in the local currency in both AA and CA ledgers.

The cross border payments industry


cross border payments wire transfers by a bank are time-taking (up to five days) and costly. Other than cash flow delays, even in online banking, banks impose a fee, which will increase with regular international payments. 

Foreign exchange services

Foreign exchange specialists are faster and expected to be of better value when transferring large amounts.  Some foreign exchange platforms offer same-day payment services too!

Credit or debit card

International payments with credit or debit cards incur a fee. Credit card fees are greater than bank transfers or debit cards.  The good part is you can query the transaction and charge it back to the seller if there’s an issue.

Payment processing services

Payment service providers (PSPs) enable you to receive cross-border payments via debit or credit cards and Direct Debit. They manage the end-to-end payment process and can accept as many types of payments as possible. 

Receiving cross border payments

Your customers must have a fast and safe way to pay. You’ll need a cross-border payment process flow that’s fast and secure and fits your business needs.

B2B payments

If you utilize B2B cross-border payments, your business customers will happily make payments straight into your business bank account. 

To receive a cross border payments wire transfer like this, when invoicing customers, you’ll need to provide:

● Your or your company’s name and address

● Your bank’s name and address

● Swift code or Bank Identifier Code (BIC)

● International Bank Account Number (IBAN) or account number

eCommerce payments

In an eCommerce business, getting your cross-border payments wisely is indispensable.  Check the cross-border payment regulations for the countries you operate in, to secure your regulatory compliance around personal data and customer security.

For B2C cross-border payments, the payments are similar to domestic payments, especially if you’ve integrated publicizing costs in the local currency.

If your customers are spending in their local currency, then receiving cross-border money transfers straight into a central business bank account will incur fees. 

A good alternative is a foreign exchange platform.

Making cross border payments

When making cross-border payments, weigh up the cost of fees against the foreign exchange rate to decide your most cost-effective option-paying by bank transfer, foreign exchange service, or card.

Some providers offer no-fee payments but a poor exchange rate for the cross-border payment volume you need. For a high-value purchase, check real-time exchange rates for a few providers to ensure not losing a significant amount of money during the transaction.

If you’re paying an overseas supplier for products and services and they’re charging you in your local currency, then you won’t need to pay any foreign exchange fees.

It’s always meriting checking the supplier’s cost in the supplier’s home currency to determine if there would be a discount.

It is impossible to accept global currencies without an outstanding payment processing company. Your payment management structure should help you lessen declined transactions, reduce customer dissatisfaction, maintain low costs, and reduce the holding of foreign currencies, among others.

Once you decide to accept foreign currency, your future hurdle is picking the best payment processor. 

We, at Salt, provide borderless global payment solutions, in an effort to make not just your cross border but domestic payments too, safe and smooth. 

Visit Salt to know more!