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Discover global trends, inspiring customer stories, and how to make the most of your international money transfers.

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<figure class="image image_resized" style="width:100%;"><img src="https://content.mtfxgroup.com/uploads/blog_15_1_404f78b10c.jpg" alt="Paper Cheques Still Have a Role in the Digital Age--But Not So Much within FX Transactions"></figure><p>The cliché “The cheque is in the mail” has never inspired confidence. In local B2B transactions, cheques are the equivalent of adding a shell to snail mail. But paper cheques still have a role in the digital age.</p><p>The digital role of the cheque begins when the writer or recipient scans its image on one end of a transaction. The payer can scan the check on a computer or smartphone for deposit to the recipient’s bank account. The recipient, on the other hand, can scan the paper copy of a cheque and save postage or a trip to the bank.</p><h2>Cheque Usage, However, is Declining Worldwide.</h2><p>A report from Capgemini¹ and BNP Paribas² provided some not-surprising statistics on the declining role of cheques worldwide. Electronic payment technology has driven down cheque payment volume globally by over 13 percent as recently as 2015. That followed a previous decline of nearly 11 percent in 2014 with a consistent downward trend during the past 16 years.</p><h2>Credit and Bank Debit Cards Hold the Lead.</h2><p>Supplanting paper cheques were debit cards and credit transfers, the leading digital transactional instruments. Again, between 2014 and 2015 global non-cash transactions reached $433.1 billion.&nbsp;</p><h2>Cheques are Still Holding Their Own in the UK and the US.&nbsp;</h2><p>Despite the aforementioned decline in cheque usage, one survey of 1,000 businesses in the UK showed that over half of the survey, takers are still making and receiving payments by cheques. Here’s why:</p><ul><li>30% said cheques were the most familiar method.</li><li>29% found it easier to manage their cash flow through cheques.</li><li>25% had to comply with their customers’ preferences for payment by cheques.</li><li>21% liked the fact that cheques processed through their accounts slowed their cash drain.</li></ul><p>An interesting finding of the above survey was that many businesses still use paper payments because the bank cheque clearing system was slow—providing a 5-day lag for businesses that need to make a payment before actually having the available cash.&nbsp;</p><p>In the US a report published by the Association of Financial Professionals (AFP)³ from its Electronic Payments Survey showed a one-percent&nbsp;<i>increase </i>in the use of B2B payments. Surveyors noted that US corporations are leaning towards supporting the worldwide trend in electronic B2B payments as bank payment technology provides faster and more efficient clearing services.</p><h2>Cheques Come with Their Own Set of Problems.</h2><p>The AFP Payments Fraud Survey found that despite the reluctance among certain businesses to go paperless, cheques are the most common vectors for payment fraud in the US. About 75 percent of the companies victimized by payment fraud fell victim to fraudulently altered cheques.&nbsp;</p><p>Other problems are stopped checks or the inevitable processing errors as well as the recipient having to wait while the cheque clears. While many businesses are adopting more efficient and secure accounts payable automation processes, some challenges remain. Going from cheque payments to B2B automation can be challenging for small businesses, especially when financial service providers only offer automated payment services to larger clients.</p><h2>With Overseas Payments, the Problems are Compounded.</h2><p>Put away your chequebook. While mobile check imaging shows promise for <a target="_blank"  href="https://www.mtfxgroup.com/business/small-business/">small business</a> owners in effecting more rapid local currency transactions, overseas payments and collections come with their own set of challenges. The overseas payment process entails verification, FX conversion, as well as compliance and security assurances. And you can’t do that through the mail with a paper cheque.</p><p>You don’t want to deal with foreign cheque conversions and payment headaches. Likewise, your overseas suppliers don’t want the hassle of converting your dollar payments to their local currency. Then there is the expense and hassle of entrusting your payments to the mail system at home and abroad.&nbsp;&nbsp;</p><h2>The Volatile World of FX and Ancillary Bank Charges Can Stunt your Growth and Hurt your Cash Flow.</h2><p>Converting currency on the <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/">foreign exchange</a> market must be done through a bank. Banks make money on the deal twice: First, when they apply an inflated “spread” on the currency; second, when they apply an arbitrary transaction fee. Include another bank—yours, for example—and they also attach hidden charges.</p><p>Banks, like any other business, concentrate their resources and expertise in areas that make them the most profit: Mainly loans and investments. They don’t provide their customers with a full-featured and transparent FX platform, but they funnel your money on the top end, and what comes out is not always the most favorable exchange rate.</p><h2>You Need a Digital Overseas Payment Platform.</h2><p>If your business has overseas clients or customers and a large number of overseas payments, an unexpected change in the FX rate in a high-dollar deal could soak up your profit. You have neither the time nor expertise to shop around or set up multiple bank accounts overseas.&nbsp;</p><p>A digital payment platform—MTFX Foreign Exchange &amp; <a target="_blank"  href="https://www.mtfxgroup.com/business/global-payment-solutions/international-payments/">Global Payments</a>, <strong>for example</strong> — have all those agreements in place across multiple countries and the accompanying overseas account numbers where your customers reside.</p><h2>It is All about Risk Management and Cash Flow.</h2><p>Timing is everything in business. You want to execute the payment while the currency exchange rate is most favorable. You also want to receive your payments with a fair profit and without having to pass on high bank charges to your customer.&nbsp;</p><p><a target="_blank"  href="https://www.mtfxgroup.com/">MTFX Foreign Exchange &amp; Global Payments</a> is a full-service platform. It provides risk transparent management for your overseas transactions. Contact us and learn how we can expedite your overseas collections, give your customers flexible payment options, and eliminate exorbitant bank charges and fees.</p><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=Paper-Cheques-Still-Have-a-Role-in-the-Digital-Age-But-Not-So-Much-within-FX-Transactions"><i><strong>Open your account</strong></i></a><i><strong> in less than five minutes and try MTFX on your next business international money transfer.</strong></i></p><p><strong>Popular related articles;</strong></p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/4-reasons-why-mtfx-is-better-than-your-bank-for-your-online-global-payments-processes/"><strong>4 reasons why MTFX is better than your bank for your online global payments processes</strong></a><br>&nbsp;</li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/5-important-steps-in-the-overseas-payment-process/"><strong>5 Important Steps in the Overseas Payment Process</strong></a><br>&nbsp;</li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/pay-overseas-suppliers-in-foreign-currency/"><strong>The Benefits of Paying Overseas Suppliers in their Own Currency</strong></a><br>&nbsp;</li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/best-way-to-transfer-money-to-a-foreign-bank-account/"><strong>Best Way to Transfer Money to a Foreign Bank Account</strong></a><br>&nbsp;</li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/ensure-better-overseas-payment-processes-with-a-third-party-digital-platform/"><strong>Ensure Better Overseas Payment Processes with a Third-party Digital Platform</strong></a></li></ul><h2>Sources</h2><ol><li><a target="_blank"  href="https://www.capgemini.com/ca-en/research/"><strong>Capgemini</strong></a></li><li><a target="_blank"  href="https://www.bnpparibas-am.us/investors/insights/"><strong>BNP Paribas</strong></a></li><li><a target="_blank"  href="https://www.afponline.org/"><strong>Association of Financial Professionals</strong></a></li></ol>

Paper Cheques Still Have a Role in the Digital Age--But Not So Much within FX Transactions

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<p><img class="image_resized" style="width:100%;" src="https://content.mtfxgroup.com/uploads/blog_16_e69e6a70f1.jpg" alt="The Best Way to Transfer Money to a Foreign Bank Account"></p><p><strong>The best way to transfer money abroad is to choose the optimum method for your circumstances, access the most favorable exchange rates, and avoid hidden fees. Those choices must be balanced against convenience, speed, and security compliance.</strong></p><p>Banks and wire transfer/money operators have been the traditional methods of sending money overseas with customers due to convenience. That&nbsp;convenience comes&nbsp;with additional&nbsp;cost, however.&nbsp;&nbsp;Another less pricey alternative, which is challenging the traditional methods, is through&nbsp;specialized <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/"><strong>foreign exchange</strong></a> third-party providers.&nbsp;</p><p>So, when transferring money to a foreign bank account, consider the following alternatives:</p><h2>1. Safe, Reliable, and Compliant: Money Transfers via a Bank.</h2><p>Banks are the logical choice for most people when sending money overseas. Although an easy and secure option, a bank transfer is not always the most cost-effective or convenient method for companies doing business overseas for the following reasons:</p><ul><li>Banks offer a wide range of financial services and cannot always allocate full support or online tools for foreign exchange transactions. Banks concentrate their expertise and resources towards their most profitable business—loans, investments, and deposits.</li><li>Some overseas banks do not have liquidity in foreign currencies. They must, therefore, rely on larger banks to service their FX transactions. The cost of that additional outsourcing is, of course, passed on to the customer as yet another fee.&nbsp;</li><li>Banks usually have less competitive <a target="_blank"  href="https://www.mtfxgroup.com/tools/live-exchange-rates/"><strong>foreign currency exchange rates</strong></a>. They employ what is known as the mid-market rate in trading with other banks. The mid-market rate is not a rate they disclose or offer to customers.&nbsp;</li><li>Instead of the mid-market rate, customers get a more static exchange rate. The static rate does not account for fluctuations in the FX values. Banks apply an inflation factor or “spread” and make money when the spread tilts more in their favor. When that tilt is in the customer's favor, banks charge hidden fees to make up the difference.&nbsp;</li></ul><h2>2. Fast, but Expensive: Money Wire Transfers.&nbsp;</h2><p>MoneyGram and Western Union are famous for their ability to send money anywhere. They bypass banks and can reach recipients who need cash quickly, often&nbsp;in remote areas. Senders can transfer money online, by telephone, or at a store and get the money to its destination quickly.</p><p>The speed and convenience come at a cost of up to 5 percent or more of the transfer amount, often with minimum transaction fees. You might be able to get an online deal or view an FX conversion calculator on the wire service’s website, but don’t count on advantageous (or mid-market) FX exchange rates.</p><h2>3. Your Best Bet: Full-service, Third-party Overseas Payment Platforms.</h2><p>An online foreign exchange and <a target="_blank"  href="https://www.mtfxgroup.com/business/global-payment-solutions/international-payments/"><strong>global payments</strong></a><strong> </strong>platform can provide a full-service, low-cost method for transferring and receiving funds overseas. This service combines the financial expertise of a bank with the speed and convenience of a wire transfer service.&nbsp;</p><p>Additionally, a third-party overseas payment platform offers these advantages:</p><h3>Easy Overseas Payment Execution.</h3><p>An experienced third-party payment provider has already completed overseas negotiations and banking arrangements for its customers. The customer sets up an online account, deposits funds, and accesses a single source for multi-currency dealings.&nbsp;Fees are typically lower, and FX exchange rates are transparent and competitive.</p><h3>FX Risk Management.</h3><p>Managing exposure to FX currency fluctuations is an additional level of due diligence any business owner needs to practice. Your cash flow is the lifeblood of your business. You need to protect your business from unfavorable shifts in FX exchange. Third-party platforms do that through FX risk management, or hedging, tools. The most popular are&nbsp;forward contracts&nbsp;and&nbsp;market orders:</p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/#forward-contracts"><strong>Forward contracts</strong></a><strong> </strong>lock in a favorable exchange rate, protecting your business from unfavorable currency fluctuations. By locking in the exchange rate effective at the moment, your cost of payables or receivables remains unchanged, irrespective of market volatility.&nbsp;&nbsp;<br><br>&nbsp;</li><li><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/market-orders/#market-orders"><strong>Market orders</strong></a><strong> </strong>trigger currency trades when the exchange rates move up or down, depending on the price you set.&nbsp;When the exchange rate reaches the amount specified in a market order, you are notified, and your order is filled.</li></ul><h3>Advice, Expertise, and heads-up on FX trading volatility.</h3><p>A residual benefit of joining an online payment platform is that it plugs its clients into a network of money management experts. Third-party service providers employ currency specialists, who follow the volatile FX market and keep clients updated with the latest news, insights, and strategies.</p><h3>Summary and Conclusion.</h3><p>Choosing the best way to transfer money abroad is a matter of considering the pros and cons of your alternatives:</p><ol><li>Banks are secure but do not offer the most favorable FX rates. Also, banks don’t always dedicate the resources for the best customer service in FX.&nbsp;</li><li>Wire transfer services are quick, convenient, and can reach the recipient almost anywhere in the world. However, they are expensive and don’t provide the best exchange rates.</li><li>Your best choice as a small business operator with overseas customers, clients, or partners is the third-party overseas payment platform. The third-party platform provides a single resource for multi-currency transactions, lower fees, and more favorable FX exchange rates, along with risk management tools and expert advice to protect your business cash flow.</li></ol><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=The-best-way-to-transfer-money-to-a-foreign-bank-account"><i><strong>Open your account</strong></i></a><i><strong> and stop paying exorbitant bank fees. We have the tools, expertise, and platform to help improve your cash flow and extend your overseas business footprint.</strong></i></p><p><strong>Popular related articles;</strong></p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-to-lower-costs-when-paying-foreign-suppliers/">How to Lower Costs when Paying Foreign Suppliers</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-to-save-on-overseas-money-transfers-mtfx/">How to Save on Overseas Money Transfers – MTFX</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-to-send-money-abroad-and-make-international-payments/">How to Send Money Abroad and Make International Payments</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/7-reasons-to-use-a-currency-specialist-to-send-money-abroad/">7 Reasons to Use a Currency Specialist to Send Money Abroad</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-to-send-a-large-amount-of-money-overseas/">How to Send a Large Amount of Money Overseas?</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/why-you-need-an-exchange-hedging-strategy-to-protect-business-profits/">Why you Need an Exchange Hedging Strategy to Protect Business Profits</a></li></ul>

The Best Way to Transfer Money to a Foreign Bank Account

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<p><img class="image_resized" style="width:100%;" src="https://content.mtfxgroup.com/uploads/blog_17_2a93313671.jpg" alt="How to Maximize Profits When Invoicing Overseas Clients"></p><h2>Introduction</h2><p><strong>Risk frequently follows the opportunities for foreign business transactions. With the advancement of technology, along with innovation in eCommerce, it has become easier for companies to operate virtually, without geographical constraints.</strong></p><p>Nevertheless, businesses can become vulnerable to the volatility of foreign currency volatility, which can add significant unplanned currency loss write-downs and cash flow constraints. Small to medium-sized businesses, in particular, are especially vulnerable since many operate on a knife’s edge of profitability.</p><p>Businesses that consistently invoice clients and deal in foreign currencies must make decisions that range from the frequency of invoice cycles, to how to bill, as well as which currency to use in billing.</p><p>By far, the most important invoicing decisions relate to <a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/"><strong>foreign exchange risk management</strong></a><strong> </strong>and how to manage currency exchange rate volatility. For example, a loss in the currency exchange value of just a few pennies over a few months could translate into the loss of thousands of dollars in profits for a high-value transaction.</p><p>Making the right choices and implementing a strategy to streamline invoicing operations when working with international clients will help protect cash flow and business profits, regardless of currency market volatility.</p><p><strong>This blog will:</strong></p><p>1. Identify common areas of problems for international invoicing.&nbsp;&nbsp;<br>2. Explore solutions to create efficiencies for receiving incoming payments in multiple currencies.&nbsp;&nbsp;<br>3. Describe specific currency risk management solutions aimed at reducing the risk of lost profits from volatile currency markets.</p><h2>International Invoicing Options.</h2><p>Points to Ponder:</p><ul><li>How often to&nbsp;invoice&nbsp;matters when dealing in foreign currency because of fees and fluctuating exchange rates.</li><li>Billing is an important&nbsp;consideration&nbsp;when dealing with&nbsp;currency exchange and fees. It makes more sense, for example, to bill monthly, rather than weekly, because the flat fees are the same regardless of the size of the currency conversion. It is essential, however, to&nbsp;be sure that monthly billing will not negatively impact cash flow.</li><li>Your invoicing style will rely heavily on the transaction type&nbsp;that you are conducting. For example, understanding whether your invoice will require a specific amount on a set date in a particular currency, or if the amount of the invoice is based on month-to-month variations in delivery.</li><li>You need to choose the currency to pay your invoice. For example, does it make more sense to bill in your local currency or your client’s?</li></ul><p>Based on the foregoing and depending on which solution you select for receiving payments, you need to outline a workflow that optimizes profits and minimizes risks.</p><h2>Receiving Payments and Invoicing in Multiple Currencies</h2><p>Receiving invoice payments in multiple currencies previously required a brick-and-mortar overseas bank account. As the only option, that banking arrangement posed the following challenges:</p><ul><li>Inconvenient delays in access to deposited funds</li><li>Time delays and restrictions surrounding transmission/receipt of funds</li><li>Loss of profits as currency volatility eroded the value of the funds on hand</li><li>Diminished cash flow due to high transaction fees</li></ul><p>With the onset of financial technology, new vistas have opened for both invoicing and managing currency exposure. Access to currency accounts is as easily accessible as a web browser. Payment deliveries are now measured in hours rather than days. Most businesses have access to risk management tools that can either opt in or bail you out when currency rate exchanges either rise or fall to a level acceptable to your business.</p><p><strong>So, with the onset of new payment mediums, advancing technology, and payment innovation, overseas invoicing strategies include more agile and flexible options:</strong></p><h3>Option 1. Convert currency during times of favorable exchange rates.</h3><p>Foreign currency hedging tools, described below, allow businesses to determine the right time to convert their currency. When a business receives an alert that an optimum currency exchange rate has been reached in the foreign exchange market, they can choose to convert the funds and significantly increase their profits.</p><h3>Option 2. Hold the currency and send an outgoing payment request without having to convert funds.</h3><p>This option further empowers businesses to decide&nbsp;<i><strong>if&nbsp;</strong></i>they want to convert their foreign currency. If the business decides to send an outgoing international payment in the same currency, they can do so without having to reconvert funds. This would eliminate the requirement of converting incoming payments into your local currency, then reconverting the funds back to the foreign currency to affect payment.</p><h3>Option 3. Engage a foreign exchange solution provider to handle options 1 and 2.</h3><p>Foreign exchange and global payment solution providers are a great options for businesses that have international clients. They typically work with over 120 different currencies in virtually every country in the world. They also do not charge additional transaction fees and provide currency exchange rates that banks cannot match.</p><p>Foreign exchange solution providers also offer insightful analysis and commentary on currency markets as well as a slew of risk management tools with strategies aimed at managing currency exposure, optimizing cash flow, and securing profits.&nbsp;&nbsp;</p><h2>Risk Management Strategy: Securing Exchange Rates.</h2><p>Securing the best exchange rates involves a sensible risk management strategy. The strategy cannot always predict the best exchange rate, but it can mitigate exposure before the bottom drops out of your cash flow.&nbsp;&nbsp;</p><p>Pairing multiple currency management options with a risk management strategy allows for stable cash flow and reliable forecasting. The tools to manage foreign exchange currency risk are&nbsp;forward contracts&nbsp;and&nbsp;market orders.</p><h3>Forward Contracts</h3><p><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/forward-contracts/"><strong>Forward contracts</strong></a><strong> </strong>are one of the most popular tools because they minimize or negate risk, with a guaranteed exchange rate. They lock in currency exchange rates up to a year in the future. The forward contract allows a company to forecast expenses accurately by knowing what exchange rate will be used.</p><h3>Market Orders</h3><p><a target="_blank"  href="https://www.mtfxgroup.com/business/risk-management/market-orders/"><strong>Market orders</strong></a><strong> </strong>allow you to either capture a move in your favor or protect against an adverse currency movement. There are two types:</p><ol><li><strong>Limit orders</strong>, which target exchange rates that are better than the current market rate</li><li><strong>Stop loss orders</strong>, which protect you against market volatility by setting a worst-case exchange rate and triggering a trade.&nbsp;</li></ol><h2>Summary and Conclusions</h2><p>Doing business overseas requires an agile and flexible invoicing strategy to avoid the pitfalls of currency volatility. Businesses must decide how often to invoice and which currency to use.</p><p>Emerging financial technology innovations have taken much of the pain away from dealing with overseas customers, but businesses must decide when and if they need to convert currency transactions to achieve the least currency rate volatility exposure.</p><p>There are a variety of strategies in handling foreign currency for invoicing. If you do a large amount of overseas invoicing, foreign exchange, and global payment solution providers offer a great alternative to banks.</p><p>Finally, the risk management tools including forward contracts and market orders allow you to both lock in favorable exchange rates and automatically trigger currency trades as the rates rise or fall.&nbsp;</p><p><a target="_blank"  href="https://online.mtfxgroup.com/register/?source_page=How-to-Maximize-Profits%20When-Invoicing-Overseas-Clients"><i><strong>Open your account</strong></i></a><i><strong> in less than five minutes and</strong></i><strong> </strong><i><strong>we'll show you how foreign exchange currency risk management can protect as well as increase your business's profits.</strong></i></p><p><strong>Popular Related articles;</strong></p><ul><li><a target="_blank"  href="https://www.mtfxgroup.com/post/managing-paying-income-taxes-abroad/">Managing Paying Income Taxes Abroad</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/how-exchange-rates-can-affect-your-business/">How Exchange Rates can Affect your Business?</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/global-collections-services-make-for-loyal-overseas-customers/">Global Collections Services Make for Loyal Overseas Customers</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/ensure-better-overseas-payment-processes-with-a-third-party-digital-platform/">Ensure Better Overseas Payment Processes with a Third-party Digital Platform</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/stop-wasting-money-paying-overseas-suppliers-in-us-dollars/">Stop wasting money paying overseas suppliers in US dollars - there are more cost-effective alternatives</a></li><li><a target="_blank"  href="https://www.mtfxgroup.com/post/is-billing-foreign-customers-in-their-local-currency-better/">Is Billing Foreign Customers In Their Local Currency Better?</a></li></ul>

How to Maximize Profits When Invoicing Overseas Clients