Are you paying your vendors in their local currency - Blog MTFX
Have you considered paying your vendors in their local currencies? This is why you should
You might have thought that using your home currency for your international transactions versus the local currency of the supplier was your simplest option, but if you pay attention to the entire transaction process, going this route leaves you and your business susceptible to market volatility while at the same time potentially forcing you to pay double the conversion fees.
When it comes to doing business across borders, one party always needs to be responsible for the currency exchange. Depending on the market in which you are making your vendor payments, there is a chance you could be paying a premium that exceeds the cost of converting your currency without realizing it.
There are many players within the international transfer process that could cost you and your business added fees
When it comes to cross-border payments and using your home currency to pay your vendors, you could be at the mercy of paying a lot of players along the way before your transaction is fully settled. Fees can arise from your bank for processing an international wire transfer to make the vendor payment (ranging anywhere from $10-$50), in most cases an intermediary bank is required when paying a vendor internationally and when used they take an additional processing fee, the beneficiary bank for your vendor will also take a fee when the payment reaches their bank account, and additionally, there will be another conversion fee to transfer your home currency funds into the local currency of your vendor to complete the payment.
When all those steps are finalized, you end up paying an additional sum of upwards of 7 percent. You, and your business, also shoulder the risk that your currency could lose value in transit due to fluctuating currency exchange rates between the time of your invoice payment and the final settlement, which can be lengthy.
Why you should be paying your vendors in their local currency
Innovative fintech’s have emerged in the category offering local in-country payment solutions that can save your business the fees noted above while at the same time, reduce your businesses FX exposure by giving you the ability to make payments and hold funds in multi-currency accounts that you can access any time, 24/7, thus removing the need to make costly currency conversions.
Not only can you save on processing and currency exchange fees with local in-country payments, but next-generation solutions from fintech leaders in the space, like MTFX, can also enable direct integration of these solutions into your business ERP system, removing all the manual reconciliation work that is normally required to balance and record your overseas business transactions.
MTFX’s international payments solution provides your business access to +100 currencies, including exotics, and is compatible with all of the top ERP systems in the market including, Quickbooks, Oracle, SAP, Dynamics 365, Sage, among others. This solution facilitates, through API automation, the generation of your payables as well as the settlement of your overseas business payments, all in one easy-to-use portal so you can keep track of your cash flow while saving both time and money.
Our platform can help you grow your profits
Learn more about how our third-party payment platform can help you retain your local customers and expand your business globally. Contact us and we will show you how our foreign exchange currency risk management and local in-country payment solutions can protect as well as increase your cash flow
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Who can use the MTFX payment service?
Individuals and businesses who need to send money in foreign currency internationally can use MTFX’s services. The beneficiary of the transfer must have a bank account for the funds to be paid into.
Personal clients usually use our services to transfer money between their own accounts in two different countries.
Business clients usually use our services to transfer funds to suppliers, fund international operations, or repatriate overseas earnings.
Why should I use MTFX and not my own bank?
MTFX offers currency exchange rates that are 2-5% better than those offered by the banks. Personal clients usually save hundreds of dollars per transfer and for larger transfers, the savings can run into the thousands.
We also offer excellent customer service, dedicated currency specialists, and a 24/7 online platform with best-in-class technology that allows you to complete transfers from any device virtually anywhere in the world.
Business customers save with better currency exchange rates and proven solutions geared towards managing and mitigating foreign exchange risk. Our solutions include forward contracts, market orders, rate alert services, and much more - all backed by great technology and great people.
How do customers send funds to MTFX?
Funds can be transferred via wire transfer, Electronic Funds Transfer (EFT), or ACH payment services. MTFX maintains bank accounts in all major currencies with highly-rated banks. Our banking infrastructure ensures that you can transfer funds to us quickly and securely.
How long does it take MTFX to transfer funds?
Our global network of banking partners allows us to get funds to virtually anywhere in the world quickly and efficiently. Most wire transfers from MTFX will be received by your beneficiary within 24-48 hours. MTFX also offers same-day transfers that are almost instantaneous, as well as low-cost in-country payment services for your less urgent transfers. For further information please speak to one of our currency specialists.
Please read the following update before logging in to your MTFX online account
We have updated our online dealing system to provide you with better functionality, more unique tools and an overall enhanced client experience. MTFX Online 2.0 is now available for your dealing needs. You can begin using our enhanced online portal today.
Please note that the traditional portal will be available for use until MAY 30th 2021 at which point it will be decommissioned.