Receiving regular incoming payments can be costly when currency conversion and bank fees are charged.

Reduce the overall cost of incoming payments and opt for a cross-border payment solution designed to save your business money, not spend it.

This includes choosing the right payment gateway and deciding on the access you need to things like virtual cards and whether you will send money out of the account in the future.

Managing incoming business transfers

There are a few key elements to consider when receiving business payments.

Size and number of payments
Size and number of payments

The size of the payment, or payments can impact the choice of provider.

For example, a one-off bigger payment could mean using a different provider than many smaller, day-to-day payments.

Taking into account the type of payments will help decide the type of company to work with.

Currency risk
Currency risk

Receiving payments in the right way, through a multi-currency account, reduces currency risk.

It allows you to transfer the money to the base currency when it is right for you, not when a company sends it.

Start and end points
Start and end points

The ability to receive incoming payments from certain countries is more challenging than others.

‘Core’ business currencies are generally supported by most providers.

But emerging market currencies are sometimes harder to come by.

Bank receiving fees
Bank receiving fees

One of the perks of using a multi-currency account for receiving cross-border payments is the removal of bank fees.

These can at times be as high as $30 per transaction.

For regular income, it adds unnecessary cost to the amount it costs to run a business.

Timeframes for international transactions
Timeframes for international transactions

Sending money internationally can take time, particularly in large amounts and between banks.

If a company or customer is sending money into your account, using a local account will speed up the time it takes to receive the money.

Essentially, a GBP to GBP transaction can be instant. Whereas a GBP to USD can take up to a couple of days using a traditional bank.

In effect, receiving money in this way can keep a business moving. Receiving money ‘the old way’ can slow a business down.

Controlling the cost of incoming payments

Multi-currency accounts
Local accounts
Payment gateways

Be clear on

Managing currency risk forms a huge part of the best way to receive business payments

When receiving cross-border payments, be aware of the currency risk, arising from changes in exchange rates between the time an invoice is issued and when payment is received. Again, a multi-currency account or local account can mitigate this risk.

Cross-border payments often come with various limits and fees.

Some companies will impose limits on the maximum amount that can be received, although working with an account manager can aid in increasing this limit. For the most part, however, this will be in the hundreds of thousands per day.

Understanding the tax on incoming payments will save you money

Different jurisdictions have varying tax regulations, including withholding taxes, value-added taxes (VAT), and reporting requirements. Using a multi-currency account may change the way this needs to reported, based on where the finances are located and the business is registered.

Use cases

Many businesses receive cross-border payments in different ways. Here's how different industries are tackling the challenge.

Recapping incoming cross border payments

  • Using a multi-currency account can hugely reduce the cost associated with receiving cross border transactions

  • Using a method to receive money in the same currency as it is sent often makes the transaction quicker

  • Keep accounts in multiple currencies is beneficial for risk strategy