FAQ: Understanding International Payments

International payments are a vital aspect of global commerce, enabling businesses and individuals to transact across borders. This article aims to answer some of the most frequently asked questions about international payments, providing a thorough understanding of the processes and systems involved.  If your question isn't addressed here, please don't hesitate to contact us—we're committed to providing the information you need.

International payments are typically not instant. The speed of the transaction depends on various factors, including the currencies involved, the countries of the sender and receiver, and the banks or financial institutions processing the payment. While some payments can be completed within a few hours, others may take several days to process.

Are CHAPS Payments International?

CHAPS (Clearing House Automated Payment System) is a UK-based system used for high-value, time-critical payments. It is not typically used for international payments but rather for domestic transactions within the UK.

How Are International Payments Made?

International payments are made through several methods, including:

• Bank transfers using SWIFT (Society for Worldwide Interbank Financial Telecommunication)

• Online payment platforms like FXellence, PayPal, TransferWise, and Revolut

• International money orders

• Foreign currency drafts

Can International Payments Be Cancelled?

Once an international payment has been processed, it is often difficult to cancel. If the payment has not yet been completed, it may be possible to request a cancellation through the sending bank or financial institution. However, this is not guaranteed and may incur fees.

How International Payments Work

International payments involve the transfer of funds between banks or financial institutions in different countries. This process typically involves:

• Converting the sender's currency into the receiver's currency

• Verifying the transaction details

• Sending the funds through intermediary banks or payment networks

• Depositing the funds into the receiver's account

How to Send International Payments from the UK

To send an international payment from the UK, you will need the following information:

• Recipient's name and address

• Recipient's bank account number or IBAN

• Recipient's bank SWIFT/BIC code

• Amount and currency to be transferred

You can initiate the transfer through your bank's online banking platform, by visiting a bank branch, or using a money transfer service, such as FXellence.  FXellence is fully online and therefore offers better rates than the big banks.

How to validate an IBAN

An IBAN or International Bank Account Number can be validated through free online tools. These services provide peace of mind by confirming the IBAN is in the correct format. While they can't confirm the bank account exists, they can spot most typos or copy & paste errors by validating the IBAN format: fxellence.com/iban-checker

How Long Do International Payments Take?

The time it takes for an international payment to be completed can vary. Generally, it takes between 1 to 5 business days, depending on factors such as the countries involved, the banks or financial institutions, and any intermediary banks used.

How to Make International Payments

To make an international payment, you need to follow these steps:

1. Gather the recipient's banking details.

2. Log in to your bank's online banking platform, visit a branch or use a money transfer service such as FXellence.

3. Enter the payment details, including the amount and currency.

4. Confirm the transaction and pay any associated fees.

What is an International Payments Routing Code?

An international payments routing code, often referred to as a SWIFT/BIC code, is a unique identifier for banks and financial institutions. It ensures that the payment is sent to the correct bank and branch. You can use free online tools to lookup and validate a SWIFT or BIC code: fxellence.com/swift-bic-checker

What is FXellence International Payments?

FXellence is a platform dedicated to providing fast, easy, and secure international business payments. FXellence supports payments to over 100 countries and in 30+ currencies, offering competitive exchange rates, low fees and fast transaction times.

Which Banks Allow International Payments?

Most major banks allow international payments, including: HSBC, Barclays, Lloyds Bank, NatWest, Santander, Citibank, JP Morgan Chase

Additionally, many online banks and payment platforms, such as FXellence, TransferWise, Revolut, and PayPal, also offer international payment services. It's advisable to shop around, as the rates applied and fees charged can greatly vary between providers. High street banks are usually more expensive. Find out more about how International Payments are priced here: fxellence.com/pricing

Why Do International Payments Take So Long?

International payments can take a long time due to several factors:

• Verification processes to prevent fraud and comply with regulations, such as 'know your customer' and anti-money laundering requirements.

• Currency conversion and exchange rate fluctuations

• Involvement of intermediary banks

• Different banking hours and holidays in the sender's and receiver's countries

What Are International Payments?

International payments are transactions where the payer and the recipient are in different countries. These payments can be made for various purposes, including business transactions, personal remittances, and online purchases.

International Payments Without Fees

While most international payments incur fees, some banks and financial institutions offer fee-free international transfers under certain conditions. Services like FXellence, TransferWise and Revolut often provide low-cost or low-fee options for sending money internationally. Some providers' fees are wrapped up within the rate, so it's not clear what fee you're paying.  Therefore, price transparency is important. Find out more about how fees and rates are calculated: fxellence.com/pricing

How to Make International Payments Without a Credit Card

You can make international payments without a credit card by using:

• Bank transfers

• Online payment platforms like FXellence, PayPal or TransferWise

• Prepaid debit cards

• Money transfer services like Western Union or MoneyGram

Why FXellence is a great choice

FXellence stands out as an excellent choice for UK businesses seeking a reliable payment provider for several reasons:

1. Customer Service: FXellence prioritises customer service, ensuring businesses have the support they need for smooth and efficient transactions.
   

2. Competitive Exchange Rates: FXellence offers real-time, live exchange rates, ensuring businesses get the most up-to-date and competitive rates available.

3. Low Fees: With fees starting from just £1, FXellence provides a cost-effective solution compared to high-street banks, which can charge up to £30 per transaction.

4. Wide Currency and Country Coverage: FXellence supports over 30 currencies and allows businesses to send money to more than 100 countries, making it a versatile option for international transactions.

5. Secure and Intuitive Platform: The platform is designed to be secure, easy to use, and transparent, taking the guesswork out of international payments.

6. Powerful Reporting Tools: FXellence offers robust reporting features, allowing businesses to track their payment history, export data, and manage recipients efficiently.

These features make FXellence a strong contender for UK businesses looking for a reliable, cost-effective, and user-friendly payment provider.