Key Takeaways
- Moving to a new FX provider isn’t difficult, but you often need to migrate your existing payment flows to the new platform.
- Using your new and old FX providers in parallel can streamline the changeover.
- Doing so allows you to gradually move payment flows with a fallback option.
- Switching to Payset is easy: use our FX platform on its own or with other services.
What Actually Happens When You Switch Business FX Providers
When you move to a new foreign exchange (FX) provider, the process is straightforward: your account will be ready for use soon after you’re approved.
You’ll often need to complete onboarding steps, such as submitting compliance details and adding funds or connecting accounts, before you start trading and transacting.
Many things won’t change from your business’ perspective. Your external bank accounts, partner relationships, and payment obligations remain in place. These are all part of your workflow — not part of the FX service you use.
However, your account might not be set up to handle those connections right away. That’s why it’s useful to use your old and new providers in parallel: doing so before the change is fully complete allows you to resolve any difficulties that come up.
In short, planning your move minimises interruptions to your normal payment flows. Here’s how to make the changeover as seamless as possible.
Step-by-Step: Using FX Platforms In Parallel Before Cutover
You can use your old provider even after you start using the new one, giving you more time to adapt your payment flows. Here’s an FX provider switching checklist.
1. Review Your Current Agreement
To continue using your old service, you’ll need to find out how long your current contract lasts. Determine whether you need to pay to renew the contract term or let it run out. Also consider your overall FX costs and why it’s worth switching to a new provider.
2. Onboard With the New FX Provider
Once you’ve chosen a new FX platform, the next step is signing up for the service by submitting an account application to the provider.
If you’re approved, you’ll need to complete onboarding steps such as meeting compliance requirements, providing your business details, and verifying your account. You may also be able to connect your external accounts at this stage.
3. Add Funds to the New Account
Before you start using your new FX provider for currency conversions and payments, you’ll need to add funds to your account.
The exact process depends on the provider. Some allow you to deposit funds from an external account, and some allow you to connect funding sources without depositing funds. Some providers may also allow you to receive inbound funds from senders.
Remember that settlement times can prevent funds from arriving immediately in your account. Make sure your funds will arrive in time to make critical payments.
4. Test Small Trades and Transfers
Now that you have a balance, it’s time to try the first payment in the new account.
Check that you’re able to input all of the recipient’s details — your new provider may require different details than the old service. Also inspect the FX rate, fees and settlement time to make sure they’re what you expect based on the advertised features.
Test small and non-critical transactions first. Starting with these less important payments makes it easier if you need to fall back on your old service to make the transfer.
5. Run Both FX Services In Parallel
Now, you can use both FX providers in parallel. Gradually migrate your payments to the new service, moving increasingly critical payments while confirming that they succeed.
Take note of whether any payments are interrupted. Observe whether your volumes trigger the new provider’s fees or limits. If you experience slow months, consider whether volume pricing is one of the problems switching solves.
You also should set a deadline for moving your payment flows. Compare how long it will take to move everything against the time until your original service ends.
6. Finalise the FX Provider Change
Once you’ve moved your payment flows, you can stop using the old provider. Close your old account or allow the term to run out, making sure you have withdrawn any remaining balances. You may also want to keep records from the old account for future reference.
Handling Recurring Payments and Payroll During the Changeover
Changing to a new provider involves making sure that complex payment flows that depend on FX conversion continue without interruption.
Payroll transactions are critical because they often involve a large number of recipients each month. Be sure to account for your payroll schedule when you start using the new platform. Don’t move your payroll just before it’s time to pay your staff: start long before the next cycle so you have time to address any issues that may arise.
Similar considerations apply to scheduled or recurring payments, such as international placement fees and supplier or partner payments. Make sure there’s enough time to address any transfer that doesn’t go as planned, and prioritise the most important ones.
Remember: keeping your old service active in parallel with the new one can provide a fallback option if you encounter obstacles during payments.
What to Ask a New Provider Before Committing
There are several things you can ask a new provider. You don’t need to ask all of these questions, but they can help you make sure the new service meets your needs:
- Onboarding: How does onboarding work? What business and compliance details do I need to provide? How long should I expect to wait for approval?
- Migration support: What support do you offer during the onboarding process? Can you help me migrate my existing payment flows? Can you help me set up lists of payment partners, payment instructions, or integrations?
- Support for external accounts: Do you support deposits from my bank or payment provider? Do you support the country my bank is based in?
- Settlement times: How long does it take for inbound funds to arrive in my account? How long does it take for outbound transfers to complete?
- Payment options: Do you support the currencies I use in payroll, the payment networks I use, and the countries I transact with?
- Fees and pricing: What are your FX rates? Do you charge other fees? Do you have tiered pricing or discounted rates for high-volume businesses?
- Usage limits: Are there maximum amounts that I can trade or transact, either per transaction or over time? Are there minimum amounts?
- Payment scheduling: Do you offer scheduled or bulk payment tools? Can I manage payroll transactions and recurring payments?
Switching to Payset Is Easy
At Payset, we make it easy to switch to our platform. Sign up, and we’ll typically have your account reviewed and approved within a few days.
You don’t need to cancel your existing provider: you can use our multi-currency IBAN account and FX platform as your main service or just when you need it.
We provide international coverage. Send, receive, and exchange up to 38 currencies in 180+ countries with our multi-currency accounts and FX services. Our payroll features make it easy to pay your team and set up bulk and recurring payment flows.
FAQ
Can I move to a new FX provider without disrupting payments?
Changing to a new FX provider should not disrupt your existing payments as long as you know how it works and can adapt your payment flows. However, it’s a good idea to make sure that the new service meets your needs before you cancel your existing FX service.
How long does it take to switch business FX providers?
Signing up for a new FX platform can take as little as a few days, but the full changeover can take longer. You may want to use your old provider in parallel for some time.
What should I ask before switching FX providers?
Before switching FX providers, ask if they provide all of the payment features you need. Also ask about other details such as fees, FX rates, and settlement times.
