How to Pay Overseas Suppliers Without Losing Margins to Your Bank

In today’s globalized economy, sourcing goods and materials internationally isn’t just a smart move- it’s a strategic necessity. Whether you're importing precision parts from Germany, electronics from China, or artisanal textiles from Turkey, overseas suppliers offer competitive pricing, unique inventory, and supply chain flexibility that Canadian businesses need to thrive. Yet, there’s an invisible cost dragging down those savings: your bank.

Many small and medium-sized enterprises (SMEs) in Canada still use traditional banks to handle overseas business payments. It’s easy, familiar, and seems secure. But when you peel back the layers of foreign exchange markups, international wire fees, and processing delays, the real expense becomes clear.

Let’s explore why banks may not be the best way to pay overseas suppliers- and what smarter alternatives are available for international business payments.

Why traditional bank payments eat into your margins

At first glance, using your bank to pay overseas suppliers might seem like a logical choice. You log into your corporate account, convert CAD into USD, GBP, or another recipient currency, and initiate the wire. But here’s what banks don’t tell you upfront.

Hidden FX markups

Banks rarely give you the actual mid-market exchange rate you see on Google. Instead, they bake in a foreign exchange (FX) margin- usually 2% to 4%- without making it obvious. That means for every CAD 100,000 you convert to pay a supplier, you could be losing $2,000 to $4,000 in exchange rate spread alone. That’s money you could have invested in inventory, staff, or advertising.

Stealthy transfer and intermediary fees

In addition to poor FX rates, banks charge international wire fees that range between $25 and $75 per transaction. Plus, intermediary or correspondent banks along the wire route may deduct their own fees, meaning your overseas supplier might not receive the full payment. This could lead to underpayments, strained vendor relationships, or even shipment delays.

Slow transfer times

Bank wires can take up to five business days, especially if routed through multiple financial institutions. In fast-paced industries like e-commerce or manufacturing, those delays can disrupt operations or create bottlenecks with overseas vendors.

Lack of visibility and flexibility

Most banks don’t allow you to lock in rates, track payments in real time, or automate recurring transfers. Without transparency, it's difficult to manage cash flow or build predictable supplier payment schedules- an essential feature for modern global businesses.

What Canadian importers really need in a payment solution

If your business relies on global sourcing, you need more than just a wire transfer service. A purpose-built international payment platform should offer:

• Competitive FX rates – To protect your margins
• Low or zero transfer fees – Especially important for high-volume e-commerce international supplier payments
• Faster processing – To keep your supply chain moving smoothly
• Payment transparency – Real-time tracking for finance teams and supplier assurance
• Flexible FX tools – Including rate alerts and batch payments solution
• Regulatory compliance and security – To ensure smooth, compliant transfers

A platform that delivers these benefits isn’t just a cost-cutter- it becomes a strategic asset.

The fintech alternative: Why MTFX is the best way to pay overseas suppliers

Forward-thinking Canadian businesses are moving away from traditional banks and embracing fintech platforms like MTFX. These platforms are engineered for cross-border efficiency, using smart technology and global banking networks to enable secure, low-cost, and fast payments worldwide.

Get bank-beating exchange rates

MTFX delivers near mid-market exchange rates, often saving businesses 2–5% per transaction compared to banks. Over the course of a year, these savings can add up to tens of thousands of dollars, especially for companies managing large-volume international business payments. You can check the rates through the live exchange rates tool or the daily exchange rate lookup.

Same-day global transfers

MTFX enables same-day or next-day delivery to over 190 countries. When you pay overseas suppliers quickly, it enhances trust and positions your company as a reliable partner. This can even open the door to early payment discounts or exclusive supplier terms.

Multi-currency business accounts

With MTFX, you can hold, send, and convert between major currencies like USD, EUR, GBP, and INR- without needing to open a foreign bank account. This makes it easier to time your transfers strategically based on market movements.

Rock-solid security & compliance

MTFX is registered with FINTRAC and adheres to strict anti-money laundering (AML) and Know Your Customer (KYC) protocols. All transfers are encrypted, tracked, and regulated to meet Canadian and international standards.

Making the switch: How to start paying suppliers with MTFX

Switching from bank wires to MTFX is easier than you think:

1. Create your free MTFX business account

Quick online setup with verification and compliance screening.

2. Book a rate or set alerts

Lock in preferred FX rates or receive alerts when target rates are available.

3. Add supplier details

Input recipient’s currency, bank info, and delivery country.

4. Fund your transfer

Send Canadian dollars to MTFX via EFT or bank transfer.

5. Send and track

Monitor each transfer in real time from your dashboard.

6. Automate for efficiency

Use scheduling option for regular e-commerce international supplier payments.

The same streamlined method applies whether you're converting CAD to USD, GBP, JPY, or any other currency. Check today’s exchange rates for your preferred currency pair below and initiate your transfer with confidence.

More than just payments: Extra benefits for Canadian businesses

Build stronger supplier relationships

Fast, accurate, full-value payments position you as a reliable client. Many overseas suppliers will prioritize your orders—and may even offer more favourable terms when you pay efficiently.

Manage FX risk like an expert

Use rate alerts and multi-currency accounts to avoid volatile swings in CAD value and better forecast your cash flows.

Access dedicated support

Whether you’re managing a one-time large payment or planning to transfer money for overseas orders regularly, MTFX offers a hybrid model: smart automation with real human support. A dedicated account specialist is available to guide your business through complex or high-stakes international transfers.

Rethink how you pay overseas suppliers

Traditional banking methods may feel safe, but they come with hidden costs and rigid limitations that hurt your global competitiveness. As your business grows, so does the importance of finding the best way to pay overseas suppliers.

MTFX offers a fintech-powered solution that empowers Canadian companies to send money for overseas purchases with confidence, clarity, and cost-efficiency. 

Whether you're handling one-time transactions or managing recurring overseas business payments, it's time to make the switch- and take control of your margins. Get started with MTFX business payments.

FAQs

1. How do I know if my supplier received the full payment?

MTFX provides real-time tracking and delivery confirmations for each transaction. You’ll know when your supplier receives the funds and how much they received, helping ensure full-value, on-time payments.

2. Can I pay in any currency?

Yes, MTFX supports over 50 global currencies, allowing you to pay overseas suppliers in their preferred currency, whether it's USD, EUR, INR, CNY, or others.

3. Is there a minimum or maximum I can transfer?

There’s no hard limit. Whether you're paying a CAD 10,000 invoice or sending CAD 10 million overseas, MTFX can handle the transaction securely and efficiently.

4. How fast can I pay a supplier overseas?

Many payments are delivered same day or next day, far faster than traditional banks. MTFX leverages digital rails to speed up international business payments.

5. Can I hold funds in foreign currency to avoid conversion timing issues?

Absolutely. With MTFX’s multi-currency accounts, you can hold balances in multiple currencies and convert when market rates are favourable.

6. Does MTFX offer rate alerts?

Set custom FX rate alerts to be notified when your target rate hits. It’s a powerful tool for timing supplier payments and protecting margins.

7. How is MTFX different from bank-based wire transfers?

Unlike banks, MTFX offers near mid-market rates, faster delivery, and full transparency. There are no hidden FX markups or surprise fees.

8. Can I send bulk payments to multiple suppliers?

Yes, MTFX allows batch payments to multiple recipients in various currencies. It’s ideal for businesses with global supply chains or e-commerce vendors.

9. Can I use MTFX for e-commerce international supplier payments?

Definitely. MTFX is ideal for e-commerce businesses sourcing from online platforms or overseas manufacturers requiring fast, traceable payments.

10. Do I need a separate foreign bank account?

MTFX lets you pay in foreign currencies without needing to open offshore bank accounts, saving you setup time and regulatory hassle. Also, with MTFX, you can check historical exchange rates to understand the pattern before you decide to make payments. 

Whether you're handling one-time transactions or managing recurring overseas business payments, it's time to make the switch- and take control of your margins. Get started with MTFX business payments.