Bobby Ward, Director of Vorto Trading, explains what to look for in an overseas payments provider to improve payment processes and raise margins.
It can be difficult to know where to start when you need to pay staff overseas. Unfortunately, school doesn’t provide lessons on this and there’s only so much Google can help with. The good news: you have a number of options. The bad news: all international payment providers offer different options, so we recommend researching companies before you choose one.
What to look for in an overseas payment provider:
Exchange rates and transaction fees can massively affect your bottom line so it’s important to look for a provider with good rates and low fees. The benefit of using an FX service is that the market is competitive and therefore FX specialists generally have much lower costs and better rates than the banks.
Is your Money Transfer Regulated?
It’s important to make sure that your money transfer company is authorised by the Financial Conduct Authority (FCA), and that they safeguard all their client funds, like we do at Vorto.
With Brexit on the horizon, a fixed forward contract can help by fixing an exchange rate to take delivery of in up to two years’ time. This can provide security during uncertain times such as now.
Relocating or commuting abroad may become even more appealing in the future when the UK leaves the European Union, depending on a number of variants such as working visas and residency options. It might be time to consider an FX specialist.
Money transfers should move quickly and can often be processed within one day – no need for you or your employees to factor in extra time involved in an international bank transfer. Staff often have to wait days, or even weeks, to get paid using a peer-to-peer service and within this time exchange rates can change dramatically which could cost you or your employees greatly. This is why it is important to use a specialist FX provider.
Use a foreign exchange company who offer support consistently if you’re going to be making regular transfers. They have the potential to reduce costs for executing, managing and analysing multi-currency payroll, with simplified processes and full technical integration with the clients so it’s important to use an FX company that doesn’t treat you like another number on their books. Use a company who pride themselves on customer service and are always available to help when and where you need it.
Vorto Trading are experts in international payments, and we are always here to help. It is what we have built our business around and pride ourselves on. If you would like to find out more about what we do and how we do it, please get in touch with our team.