Multiple Currencies in Multiple Countries
Considering the differences with timing deadlines and conversion rates, initiating an international business payment can be far more complex than a typical ACH payment in the United States. Funds go through multiple intermediary banks and with a lack of transparency and absurd fees, cross-border business payments can create a poor customer experience.
As a way of removing that friction, Dwolla customers are partnering with Currencycloud to access an international payment network of 38 currencies in 180 countries. By providing complete visibility into the foreign exchange rates, Currencycloud ensures your business is getting the best rate for each international business transaction.
International Wire Transfers
Wire transfers can be a faster way of making an international business payment but likely come with higher fees. International wire transfers require both banks to have a direct communication link to transfer funds, which is why this type of transaction is more expensive—it’s more work.
International wire transfer fees can cost as much as $45 for the sender and expect a fee when banks perform the currency exchange. The best way to avoid these fees and markups is to use a nonbank option for cross-border payments.
Cross-Border ACH Payments
With global business expanding, Federal Reserve Banks are keeping pace with customer demand for cross-border payments. FedGlobal ACH is an efficient way of sending cross-border ACH payments to more than 25 countries around the world—plus debit payments to Canada.
Many financial institutions utilize cross-border ACH payments with the SEC code IAT. International ACH payments follow a similar transfer timeline to ACH transfers within the United States. Nacha—the governing body that oversees the ACH Network—worked with the Office of Foreign Assets Control to develop a new ACH format that includes information on all parties to the transaction. This allows Receiving Depository Financial Institutions to easily comply with the rules and streamline international payments.