International payments made simple: a founder’s guide

International payments made simple: a founder’s guide

International payments allow businesses to send and receive money across borders. They are used to pay overseas suppliers and contractors, collect payments from international customers, cover expenses, and move money between entities in different countries.

A cross-border payment can involve several banks or financial institutions, different currencies, foreign exchange, payment networks, and compliance checks.

This guide explains what international payments are, how they work, the main payment methods, the costs involved, how long they can take, and what businesses should consider when choosing a payment provider.

What counts as an international payment

An international payment is a transaction where money moves between parties in different countries.

For example, a US business paying a supplier in Germany, an Australian company paying a contractor in India, or a business receiving payment from an overseas customer are all international payments.

The payment does not necessarily require currency conversion. Two parties can transact in the same currency while still being located in different countries.

International payments can involve:

• Different currencies and foreign exchange
• Banks and other financial institutions
• Correspondent or intermediary institutions
• Local and international payment networks
• Identity and compliance checks
• Different processing times and cut-off hours

The route a payment takes depends on the countries involved, the currencies being used, the provider, and the payment method.

What are international payments used for

Businesses make international payments for many routine activities, such as:

Paying overseas suppliers and vendors

Importers and other businesses often need to pay suppliers and vendors located in another country. Depending on their requirements, they may pay by bank transfer, a local payment rail, or another payment provider.

Paying international contractors and employees

Businesses with remote teams may send regular payments to workers in other countries. The appropriate method depends on factors such as the worker's location, currency, employment arrangement, and local requirements.

Receiving international customer payments

A business selling to customers in other countries may need to accept payments in foreign currencies and convert or hold those funds.

Managing overseas subsidiaries

Companies with entities in different countries may move funds between accounts to cover operating expenses, payroll, working capital, or other business needs.

Trade and other cross-border operating expenses

Businesses may make cross-border payments for taxes, professional services, insurance, loan obligations, subscriptions, and other expenses. Not just this, international employees and teams may incur expenses abroad, requiring the business to pay or reimburse costs in another currency.

The right payment method depends on the countries involved, currency, transaction size, frequency, urgency, and the requirements of the recipient.

International vs domestic payments

The main difference is that international payments cross a national border, while domestic payments remain within one country's payment system.

How international payments work

The exact process varies by payment method, but a traditional cross-border bank payment usually follows these steps:

1. The sender provides payment instructions

The sender enters details such as the recipient's name, account information, amount, currency, and payment reference.

2. The payment provider checks the transaction

The bank or payment provider may perform checks relating to the sender, recipient, sanctions, fraud, and other compliance requirements.

3. The payment is routed

The provider determines how the payment should reach the recipient. A transaction may use a local payment rail, direct bank relationship, correspondent banking, or another route.

4. Currency is converted, if necessary

If the sender and recipient use different currencies, the payment may be converted. The exchange rate used can affect the final amount received.

5. Other institutions may process the payment

A cross-border bank transfer can involve intermediary or correspondent banks. These institutions may deduct fees depending on the payment route and fee arrangement.

6. The recipient's financial institution receives the payment

The receiving institution processes the transaction and carries out any required checks.

7. The recipient receives the funds

Once processing is complete, the funds are credited to the recipient's account.

Not every international payment follows this exact sequence. Payments using local rails or other payment networks can take a different route.

Local payment rails vs correspondent banking

International payments do not always move end-to-end through a traditional correspondent-banking chain. Some payment providers route funds internationally and use domestic payment rails to complete the local payout in the destination market. Examples of domestic payment rails that may be used for the local leg of a cross-border transfer include:

• ACH in the US
• Faster Payments in the UK
• UPI in India
• Pix in Brazil

UPI is India's instant payment system, developed by the National Payments Corporation of India, while Pix is Brazil's instant payment system. Both are domestic payment systems that support fast transfers within their respective markets.

SEPA is different. It is a regional euro-payment framework covering participating countries in the Single Euro Payments Area.

Correspondent banking works differently. When two banks do not have a direct relationship, they may use an intermediary bank to facilitate the transaction.

Ways to send international payments

There are different ways to send international wire transfers, such as:

International wire transfers

International wire transfers move funds electronically from a bank account in one country to a bank account in another. They are often used for large-value business payments, supplier payments, property transactions, and other situations where a direct bank transfer is preferred.

Banks commonly use the SWIFT network to exchange payment instructions, while correspondent banks may be involved when the sending and receiving banks do not have a direct relationship. Depending on the route, the sender's bank, intermediary banks, and recipient's bank may each charge fees.

Transfer times can vary based on the currencies and countries involved, bank processing times, cut-off times, weekends and holidays, compliance checks, and the number of intermediary banks involved. Some transfers arrive within one business day, while others may take several business days.

Businesses can choose from several payment methods including:

The cheapest method is not always the most suitable. Businesses should also consider delivery time, currency availability, recipient requirements, compliance, tracking, and how easily they can process payments.

Payment networks and rails used in international payments

Several payment networks and systems support domestic and cross-border transactions.

SWIFT

SWIFT is a secure messaging network used by financial institutions to exchange financial instructions. It does not itself hold or transfer the underlying funds.

SWIFT connects more than 11,000 financial institutions and supports payment activity across more than 200 countries and territories.

SEPA

The Single Euro Payments Area, or SEPA, covers 41 European countries. It enables standardized euro payments between participating countries.

SEPA Instant Credit Transfer can make funds available in the payee's account within ten seconds of a payment order when the relevant service is supported.

Fedwire

Fedwire is a US domestic payment system operated by the Federal Reserve. It is used for time-critical, often high-value payments and settles transactions individually in real time.

The Federal Reserve has announced plans to expand Fedwire operating days to include Sundays and certain weekday holidays, with implementation planned no earlier than 2028.

CHAPS

CHAPS is the UK's high-value sterling payment system. It uses real-time gross settlement and provides same-day payment processing during its operating hours.

What international payments really cost

The advertised transfer fee is often only one part of the cost. A business may also be liable to pay:

Transfer fees

Banks and payment providers may charge a fixed fee for sending a payment.

Foreign exchange costs

When currencies are converted, the provider may apply an exchange-rate margin or spread. Even a small difference in the exchange rate can become significant for large or frequent payments.

Intermediary-bank fees

Correspondent or intermediary institutions may deduct charges while processing a payment.

Recipient fees

The recipient's bank or financial institution may also charge a fee or deduct an amount from the incoming payment.

Operational costs

Payment delays, manual reconciliation, failed transfers, and additional finance-team work can create costs that do not appear on the transaction receipt.

How to reduce international payment costs

Businesses making regular cross-border payments can reduce unnecessary costs by looking beyond the headline fee.

Compare the total cost

Check the transfer fee, exchange rate, intermediary charges, recipient fees, and final amount received.

Use local payment rails where practical

If a provider can route a payment through local infrastructure, this may reduce the number of intermediaries involved.

Hold commonly used currencies

A multi-currency account can reduce the need to convert funds for every transaction, depending on the business's payment flows and currency needs.

Review fee arrangements

For bank transfers, understand whether the sender, recipient, or both parties are responsible for payment charges. The final amount received can differ depending on the arrangement.

Compare the actual payment route

Two providers can quote different prices for the same transaction because they use different routes, currencies, institutions, or exchange rates.

Paying overseas contractors: what US businesses should know

US businesses paying contractors outside the country need to consider where the services are actually performed and the contractor's tax status.

For personal services, the IRS generally determines the source of income based on where the services are performed, rather than where the contract was signed, where payment is made, or where the payer is located.

Income from services performed outside the US is generally foreign-source income. Payments of foreign-source income to a nonresident alien generally are not subject to US withholding under Chapters 3 and 4 and are not reported on Form 1042-S, although exceptions and other rules can apply.

Businesses may encounter forms such as:

• Form W-8BEN for a foreign individual
• Form W-8BEN-E for a foreign entity
• Form 8233 in certain cases where a nonresident alien claims a treaty exemption for personal services
• Form 1042-S for certain US-source income paid to foreign persons

A W-8 form is generally provided to the payer or withholding agent rather than sent directly to the IRS.

The correct tax treatment depends on the contractor's status, where the services are performed, the type of income, applicable treaties, and other facts. Businesses should confirm their specific obligations with a qualified tax professional.

International payment checklist

Before sending a cross-border payment, check:

• Recipient's legal name
• Bank name and country
• Account number or IBAN, where applicable
• SWIFT/BIC, where applicable
• Routing or local bank code, where applicable
• Currency and payment amount
• Payment purpose or reference
• Fee arrangement
• Expected amount the recipient will receive
• Invoice or supporting documentation, if required
• Whether the destination country and currency are supported

Incorrect account details can cause delays, returned payments, or funds being sent to the wrong account. Businesses should verify payment instructions independently before sending large or unusual transactions.

How long do international payments take

There is no single processing time for every international payment.

Timing can depend on:

• Payment method
• Sending and receiving countries
• Currency
• Bank cut-off times
• Weekends and public holidays
• Intermediary institutions
• Compliance or fraud checks
• Whether the payment uses local or cross-border infrastructure

SWIFT reports that 75% of payments reach the beneficiary bank within ten minutes and more than 90% within one hour. However, SWIFT also notes that the final "last mile" after the payment reaches the beneficiary bank accounts for more than 80% of total end-to-end processing time.

That means reaching the beneficiary bank quickly does not necessarily mean the recipient has the money available in their account within the same period.

Common risks with international payments

Cross-border payments create several areas businesses need to manage.

Foreign exchange risk

Exchange-rate movements can change the cost of a payment or the value of funds received.

Payment fraud

Fraudsters may impersonate suppliers or employees and provide fraudulent bank details. Payment instructions should be independently verified, especially when account details change.

Incorrect payment information

An incorrect account number, IBAN, SWIFT/BIC, or local bank code can delay or prevent a payment.

Compliance checks

Payments may be delayed while banks or providers conduct sanctions, identity, fraud, or other regulatory checks.

Unexpected deductions

Intermediary or receiving-bank charges can reduce the amount that reaches the recipient.

Limited visibility

Some payment routes provide less information about where a payment is in the process, making tracking and reconciliation harder.

How to choose an international payment solution

Before choosing a bank or payment provider, compare it against the transactions your business actually makes. Look at:

1. Currency support: Does it support the currencies you need?
2. Country coverage: Can you send and receive money in the countries where you operate?
3. Total cost: What will the recipient receive after fees and FX costs?
4. Delivery time: How quickly can the payment reach the recipient?
5. Fee transparency: Are all charges clear before you send?
6. Tracking: Can your finance team see the payment's status?
7. Compliance support: Does the provider have processes for required checks and documentation?
8. Accounting workflow: Can transactions be easily tracked, reconciled, and recorded?

For businesses making frequent international payments, the best option is usually the one that fits the company's actual payment flows rather than the provider with the lowest advertised transfer fee.

How Aspire fits into international payments

Aspire provides business accounts and international payment services that help businesses centralize multi-currency balances, FX, international transfers, approvals, and transaction visibility in one platform. Businesses can use Aspire to send, receive, hold, and convert funds across currencies.

Aspire's Global Payments service states that businesses can hold multiple currencies1, make payments in 98+ currencies across 130+ countries, and access same-day transfers to 40+ currencies where supported. It also states that fees and the amount received are shown upfront, helping businesses understand payment costs before sending funds.

Aspire's pricing also provides examples of how these services are structured. According to Aspire's US (https://aspireapp.com/us) pricing information, its Basic plan is available at $0 per month and includes multi-currency accounts across 13 currencies. Aspire lists FX pricing starting at 0.22% above the mid-market rate, with SWIFT receiving listed at $0 and SWIFT sending priced at $5 for SHA and $15 for OUR. Pricing, eligibility, and supported services are subject to Aspire's current terms.

Businesses should check Aspire's current pricing and eligibility for their specific countries, currencies, and transaction types before sending payments.

Aspire provides business accounts and international payment services for businesses that need to send, receive, hold, and convert funds across currencies.

Conclusion

International payments are a normal part of doing business across borders. The difficult part is rarely sending the payment itself; it is understanding the route, total cost, delivery time, and requirements behind it.

A useful comparison starts with more than the advertised transfer fee. FX costs, intermediary charges, recipient fees, processing time, and finance-team work can all affect the real cost.

For businesses making regular cross-border payments, compare providers using the countries and currencies you actually need. Check the total cost before sending, understand how the payment will be routed, and make sure the provider gives your finance team enough visibility to track and reconcile transactions.

That makes it easier to choose between a traditional bank wire, local payment rail, FX provider, or multi-currency payment platform based on the way your business actually operates.