The way we do business is increasingly moving across borders, and it’s no longer uncommon to buy products or services from half-way across the globe. With the coming of the gig economy and several online marketplaces establishing customer trust, we all have access to supplies and professional services from other countries. Hence, you’ll most likely come across an international invoice in your inbox, or on your desk
Typically, one would pay an international invoice through bank wire transfers, online payment platforms, or credit cards, etc. However, each of these has their fair share of hitches, which you might have witness if you’ve used one already.
Let’s take a look at what factors usually come into play when paying an international invoice.
Currency conversion fees
Whatever the method of transaction you use to pay your international invoice, there’s a currency conversion fee involved. Typically the institution through which you transfer the funds to will charge you directly- usually it’s a set percentage of the transaction amount. If you’re buying a service, it’s entirely possible that you have to bear this additional cost. Not many service providers will agree to take a hit by accepting currency conversion fees, as it eats into their margins. However, if you’re regularly transferring money, then this becomes an issue and at times, a significant overhead for you as well.
Usually, one looks for services overseas when you’re convinced that the services are cheaper, resulting in savings for the organization. This can give your company an edge in a highly competitive market. Also, you may even gain from the time zone difference, by ensuring that you have 24×7 service. But, this currency conversion factor can become a spoilsport and undo all the effort to save the top line.
Exchange rate margins
We all are aware that exchange rates keep varying by the second across global markets. So, at any point of time, when currency conversion happens, a typical rate as applicable at that point of time is what is considered. This typical rate is usually a different rate from the actual exchange rate at that point, as the institutions undertaking the money transfer arrive at this by either adding or deducting some points. Depending on the amount being transferred, the country, the conversion rate, etc. this exchange rate margin can eat away at your margins as well.
Few institutions may also charge you a service fee or a transfer fee for making your international payment. For example, credit cards will charge you approximately 2.25% of the transaction amount as a service fee, over and above the other factors mentioned. Many times, people and organizations are not aware that institutions like banks are charging them such fee. Usually, they believe that they have a good thing going and perhaps have a got a good deal on their international payment. In other words, there’s a possibility that these charges may well remain hidden from you unless you look for it.
Banks are known to charge their customers excessively on such transactions. With the confidence that people usually prefer to go with the banks due to comfort and safety factors. Many platforms do openly quote that they charge for such transactions, so you’re forewarned.
When you look at all these factors, it does appear as if making international payments seems more cumbersome than you thought. So, is the option not to avail services outside the borders of your country and thus forego the cheap and at most times, quality of service? Or do individuals and businesses have an alternative option to make their payments for international invoices? Perhaps, the answer to these questions lies with REMITR.
REMITR was founded by a set of passionate entrepreneurs who wanted to simplify and automate cross-border payments. The objective was to drastically reduce the time and cost of transferring funds from one country to another. REMITR is the answer to all the questions that arise when making international payments, whether personal transfers or business invoices.
REMITR is characterized by its simplicity, efficiency, and automation that helps you make payments without the hassle. The fact that it’s simple does not in any way mean that it’s not safe or secure. REMITR abides by all the necessary regulations for making such payments and has the highest standards for security.
With cutting edge technology, robust processes, and an innovative approach, all the success factors are in place. In keeping with the times, REMITR has a platform that you can use to initiate payments from anywhere! And all of this comes to you with options like; quick online customer on-boarding, user-friendly platform, competitive exchange rates, and a fee as low as $5. Well, it does kind of sound like it’s too good to be true, but REMITR is the real deal!
How and what of REMITR?
Eager to know more about REMITR? Whether you’re a freelancer, an ad network or an organization, you could easily sign up with REMITR and start processing your international invoices in a few easy steps. They have industry specific solutions that make things easier for you. REMITR can help you make payments to 150+ countries, in a 100% safe and assured manner.
The complete process is automated and easy for you to set up and use, with built in controls. They provide continuous support, just in case you find yourself in a spot. All you have to do is register, fund the payment and then fill in the beneficiary details and make the transfer. Choose the currency and you will be shown the exchange rates, that way you know exactly what it is at the point of transfer. Everything is very simple and transparent, avoiding rude shocks later on. Even if you choose to shop around and compare, you will find that REMITR is still your best bet for paying an international invoice.
The REMITR state of the art platform is designed in such a way that it all happens seamlessly, and you may just start wondering what all the fuss was about, while making international invoice payments.
Just make sure to check that the invoice has all necessary details that are verified. And check if VAT is applicable on the invoices, based on the country from where you have purchased the products or services.