Multi-Currency Account for Exporters & Importers
Choosing the best foreign exchange service is paramount for companies in the import/export industry. If you’re moving money across international borders, your ability to find a cost-efficient and secure multi-currency account can make or break your business.
Here’s what you should consider when selecting a multi-currency account for importers and exporters. In doing so, you’ll get the best import & export payment service possible.
What Is a Multi-Currency Account for Exporters & Importers?
Multi-currency accounts allow importers and exporters to handle more than one currency through a single service. This means that importers and exporters can send, spend, receive, store, and convert between world currencies as needed.
Multi-currency accounts for importers and exporters can save money and facilitate more efficient transactions, making this a key tool for any business in the industry.
What Is Importing & Exporting Foreign Trade?
Importing and exporting can involve direct or indirect models, and one approach may be more appropriate for your business than the other. We’ll explain both models below.
Direct Import/Export
Direct importing and exporting involves buying products from a supplier or selling products to a customer in another country. This means that your company is responsible for invoicing, marketing, sales, and other typical business activities throughout the entire process.
This approach is advantageous as it allows you to stay in direct contact with your customers and suppliers, maintain higher profit margins, and reduce reliance on third parties. However, it also requires greater time and effort and carries greater risk than indirect options.
Indirect Import/Export
Indirect importing and exporting involves entering a relationship with third parties such as agents and distributors, who will represent your company and its products internationally.
This approach requires less staff and less effort than a direct model. Plus, working with more than one third party can help you expand your international coverage.
Unfortunately, an indirect approach can also be more costly and can reduce your profit margins. It also requires you to find business partners that are fully trustworthy and reliable.
Why Are Multi-Currency Accounts Important for Export/Import Business?
It’s important for import/export companies to obtain a streamlined payment solution because doing so will improve business operations. Here are three benefits:
Lower Conversion Costs
Multi-currency accounts can reduce or eliminate conversion costs by allowing you to deposit, receive, and hold the currencies that you need. Later, when you need to carry out a transaction, you can simply send or spend the currency that the recipient asks for.
If you do need to convert between foreign currencies, you’ll benefit from competitive rates. At Payset, we offer real-time conversion rates so you get the best rate at any given time.
Global Transactions
Import and export payment services also provide the ability to transact globally.
This allows your business to connect with customers in other countries, transact in a variety of foreign currencies, and send money over multiple international payment networks.
At Payset, we allow you to exchange 38 currency pairs and hold 34 currencies in your multi-currency account. We serve over 180 countries and support several top payment networks including SWIFT, SEPA, the UK’s Faster Payments System (FPS), and more. See our supported currencies and supported countries pages for more information.
Security
Multi-currency accounts typically provide industry-standard security including PCI DSS compliance, password-based logins and 2FA, and fraud reporting.
Payset is committed to keeping your funds safe and secure. See our safeguarding statement and fraud reporting page for more details.
Payment Methods of Importers
Importers may use many different payment methods to conduct business. Some methods require traditional banks, while others can be facilitated by multi-currency accounts.
Below, we’ll look at various payment methods for importers.
Letters of Credit (Imports)
Letters of credit are written guarantees of a future payment.
First, the importer or buyer provides proof that they have sufficient assets or credit to complete a payment to a seller. Then, a bank or financial institution issues a letter of credit on the importer’s behalf. If the importer does not complete the transaction, the bank will cover the transaction, thereby ensuring that the seller or exporter receives the amount due.
Letters of credit may be used if buyers and sellers cannot be sure of each other’s capacity to complete a business deal. This approach allows a bank to assume responsibility for payments if the buyer or importer is unable to conduct the transaction as required.
Buyer Loans
Buyer loans or import loans provide importers with short-term working capital. This allows importers to make pre-shipment or post-shipment payments if needed.
This can be beneficial if you need working capital, but it has some limitations. Whereas you might receive funds in a regular loan, a bank may instead pay your transaction partners directly in the case of a buyer loan. Additionally, buyer loans are often combined with letters of credit. And, as with any other loan, you will need to pay back the loan amount with interest.
Paying Suppliers/Exporters
You can otherwise pay suppliers through a variety of methods, including:
- Consignment purchases
- Cash-in-advance
- Down payments
- Open accounts
- Documentary collections
Depending on your circumstances, you may be able to carry out any sort of transaction to an exporter through a multi-currency account.
While some options require a bank or financial institution, most standard payments are possible through Payset and other multi-currency account services.
Payment Methods of Exporters
Exporters and sellers can also make use of various payment methods. The following options can help your business handle payments as required.
Letters of Credit (Exports)
Letters of credit are typically created by banks on behalf of an importer. From your perspective as an exporter, these letters guarantee that you receive payment.
Once again, this type of written guarantee allows you to avoid issues if your transaction partner is unable to complete their side of a business arrangement.
Seller Loans
Seller loans are financing options that exporters can use in preparation to ship products. For example, an exporter may spend a seller loan on raw materials or manufacturing costs.
Exporters can obtain pre-shipment loans by presenting a bank with a letter of credit, or post-shipment loans by providing a bank with an invoice or other documents. As with other loans, you will need to pay the borrowed amount back with interest.
Collecting Payment From Buyers/Importers
There are various other ways that exporters can collect payment from suppliers. Once again, these payment arrangements include:
- Consignment purchases
- Cash-in-advance
- Down payments
- Open accounts
- Documentary collections
Some of these methods require arrangements with a bank or financial institution. Otherwise, multi-currency accounts (including Payset’s) can be used to perform payments.
Challenges for Import/Export Businesses
Import/export businesses face a variety of challenges. Fortunately, you can address most of these difficulties with a high-quality multi-currency account. Consider these issues:
Sending & Receiving Payments
Payments — especially transactions between international borders — can be costly and time-consuming due to high fees and varied global financial infrastructure.
Multi-currency accounts for exporters can help your company address that challenge by providing support for foreign currencies and international payment networks, all at an affordable rate. With Payset, you’ll get competitive rates on outgoing transactions, free incoming transactions, and free sending and receiving between Payset accounts.
Finding Cost-Effective Exchange Solutions
Import/export businesses may also find it challenging to swap currencies in a cost-effective manner due to conversion fees and markup on foreign exchanges.
Multi-currency accounts allow you to exchange currencies affordably. At Payset, we provide real-time conversion rates, meaning that you’ll always get a fair rate when swapping between currencies. You’ll also be able to hold, transfer, and use forex currencies as needed.
Managing Fraud
Import/export businesses need to address fraud risk. Your firm should take its own precautions and work with traditional financial institutions to form trusted payment arrangements.
However, multi-currency accounts usually provide fraud protection on any funds they handle as well. At Payset, we use advanced fraud prevention tools to ensure that your funds remain secure. We also ask customers to report any fraud on their account via this process.
Paying Staff Globally in Multiple Currencies
You may find it difficult to pay staff in multiple currencies, especially if your import/export business employs or contracts workers in more than one country.
Multi-currency account providers like Payset can help. You can use our global payroll services to pay staff or arrange for staff to set up their own Payset accounts. Doing so can help you reduce or eliminate payroll costs and automate your payment process.
How Can Payset Help?
Payset’s import & export payment services allow you to send and receive payments in multiple foreign currencies over various payment networks.
We provide support for over 180 countries and dozens of foreign currencies. With Payset, you’ll get affordable fees on conversions and outgoing transactions, plus free incoming transactions. You can also send and receive payments for free between Payset accounts.
Payset additionally provides dedicated account managers, live support during business hours, and an always-online help centre, ensuring that our services are highly accessible.
Click here to sign up for a Payset account. After submitting your information and documents, you’ll gain approval within 72 hours and can start making payments. If you’re not sure whether our service is right for you, contact our sales team for more information.
FAQs
How Does Import/Export Banking Work?
Import/export banking allows your business to handle multiple currencies, access affordable currency exchange services, and send and receive payments across borders. This also allows you to work with most currencies requested by clients, suppliers, and partners.
A Payset multi-currency account allows you to manage up to 34 currencies (including USD, GBP, and EUR) and exchange 38 currency pairs — all from a single dashboard.
What Are Bank Charges for Importing/Exporting?
Bank charges for importing and exporting may vary. Payset can facilitate most transactions by providing access to multiple currencies and payment networks.
Our services ensure affordable rates and efficient transfers regardless of currency.
How Can Payset Help Ease Cash Flow and Manage Risk for Importers/Exporters?
Payset provides an ideal solution for importers and exporters. We offer frictionless payments globally and facilitate exchanges between 38 different currency pairs.
We allow importers and exporters to manage cash flow in all supported currencies from a single dashboard. This reduces the risk of missed payment deadlines, lost profit margins on currency trading, inability to serve clients in certain regions, and other issues.
What Is a Foreign Currency Account for Importers/Exporters?
A foreign currency account for importers/exporters is a service that allows you to make use of a variety of currencies at once. This includes the ability to hold, spend, send, receive, deposit, and withdraw a variety of foreign currencies from one unified online service.
Foreign currency accounts including Payset also allow you to swap between different foreign currencies, meaning that you can obtain most assets as needed.
Any of the above transaction types can be used with your import/export business, whether you need to collect payments from importers or send payments to exporters.
What Are the Payment Methods Available in Import/Export Trade?
Import/export trade may involve specialized payment arrangements discussed earlier on this page. Some of these payments must be arranged through a financial institution.
Otherwise, standard payments can be carried out through multi-currency accounts. At Payset, we offer support for SWIFT, SEPA, ACH, the UK’s Faster Payments System (FPS), Electronic Funds Transfer (EFT), and CHAPS payment networks and funds can be added to your account in a myriad of ways.
If you’re not sure whether Payset can help you carry out the payments that you need for your import/export business, contact our sales team for more information.
Frequently asked questions
What is a multi-currency account/virtual IBAN?
A Payset multi-currency account allows you to receive money in 34 different currencies and send money in up to 38 currencies, all within the same account.
You can deposit and withdraw funds, convert currencies at competitive exchange rates, and hold your chosen currencies to capitalize on market movements.
A Payset multi-currency account allows startups and business owners to receive payments from clients virtually anywhere in the world and pay suppliers, staff, and contractors quickly and affordably in their chosen currency.
- Funds can be deposited and withdrawn from the account for a small fee.
- Account holders can send and receive money with other Payset users for free.
- Depending on your region, you can use various payment networks from your Payset account, including SWIFT, SEPA, ACH, Fedwire, Faster Payments, BACS, and CHAPS.
- Once you register an account, you will be provided with a Virtual IBAN (International Bank Account Number), which makes all of these transfers easy.
- We provide you with local payments and collections. For example, transactions in USD, EUR, CAD, and GBP are processed through the local payment networks, which is far cheaper and takes minutes as opposed to days
Are there limits on the amount of money I can send and receive?
No, there are no transaction limits on Payset multi-currency accounts.
However, higher-volume transactions may require additional anti-fraud verification. If you plan to make a large transaction, contact us in advance to avoid verification delays.
How is Payset regulated?
Payset is regulated as an authorized Electronic Money Institution by the UK Financial Conduct Authority. Our activities are also regulated by the Payment Services Regulation 2017 and the Electronic Money Regulation 2011 (SI 2011/99).
How do I add money to my account?
How do I send money from my account?
Once you have opened your verified IBAN account and added money to a balance, transferring funds is simple.
Simply log in into your account and add a beneficiary, then simply “make a transfer” in your preferred currency to that beneficiary.
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