5 Common Mistakes Businesses Make When Making International Payments

In today’s global marketplace, seamless international money exchange is crucial for businesses managing cross-border transactions. Whether you’re paying international suppliers, managing payroll for overseas employees, or handling large business deals, ensuring fast and accurate payments is essential to maintaining operations and strong business relationships.

However, many companies underestimate the complexities of international payments. Mistakes—such as hidden fees, regulatory non-compliance, and processing delays—can lead to excessive costs, cash flow disruptions, and damaged supplier trust. These international payment mistakes can impact business stability, financial planning, and overall efficiency.

To help businesses avoid these challenges, we’ve identified top five mistakes businesses often make when sending money across borders. Read further to learn how to sidestep these pitfalls. 

5 common mistakes businesses make when sending money overseas

Expanding your business globally presents financial challenges, especially when sending money overseas. Many businesses make costly mistakes that result in delays, excessive fees, and compliance issues, disrupting operations and international partnerships. To avoid these pitfalls, it's crucial to follow best practices for B2B international money transfers. Here are some of the biggest mistakes businesses make and how to prevent them.

Mistake 1: Ignoring hidden fees and exchange rate markups

When making an international money exchange, many business owners assume that the exchange rate they see is the same one they’ll get. However, banks and payment providers often add hidden markups to the currency transfer rate, making transactions more expensive than expected. In addition, some services charge high processing fees or intermediary bank fees that eat into the transferred amount.

For businesses, these hidden costs can significantly impact profit margins when paying international suppliers. To avoid this, always compare different providers, check the mid-market exchange rate, and choose a service that offers transparent pricing. Consider using specialized international payment services instead of traditional banks, as they often provide better rates and lower fees when you transfer money abroad.

Mistake 2: Providing incorrect recipient details

One of the most common and costly errors in international money exchange is providing incorrect recipient details. A simple typo in the account number can cause significant delays—or worse, result in the loss of funds. Banks and payment providers may reject the transaction, requiring additional time and effort to correct the mistake.

For businesses, incorrect details can disrupt supply chain payments, straining relationships with international partners. Therefore, it's important to always double-check recipient information before submitting a payment. Use verification tools, confirm details directly with the recipient, and choose a service that allows easy corrections before finalizing the transaction. Taking these precautions ensures that your currency transfer rate benefits the recipient without unnecessary complications when you transfer money abroad.

Mistake 3: Failing to comply with local regulations

Every country has different financial regulations, which can make sending funds internationally more complex than expected. Some nations restrict incoming and outgoing transactions, require detailed documentation, or enforce strict anti-money laundering (AML) and know-your-customer (KYC) policies. Failure to comply with these regulations can result in delayed or even blocked payments, leading to operational setbacks.

This mistake can disrupt supplier payments and payroll, leading to financial losses and reputational damage for businesses. Losing international clients and credibility can have long-term consequences. To avoid these international money transfer problems, research the regulatory requirements of both the sending and receiving countries. Partner with a trusted payment provider that understands global compliance laws and ensures your transactions meet all necessary standards. Staying informed and proactive helps prevent unnecessary international money transfer charges and delays, ensuring smooth and reliable cross-border transactions.

Mistake 4: Not considering payment speed and processing times

Many businesses underestimate how long a payment transfer can take. Different payment methods—such as bank wires and online transfer services—have varying processing times, impacting cash flow and financial commitments. Delays can occur due to intermediary banks, time zone differences, or slow verification processes.

For businesses, delayed payments can strain relationships with international partners and suppliers, damaging trust and future collaborations. To avoid this, choose a payment method that aligns with the urgency of your transaction. While traditional bank wires are reliable, they often take longer than online money transfer services. Always check estimated transfer times to ensure you send money to your business partner or supplier on time, maintaining credibility and strong business relationships.

Mistake 5: Overlooking fraud and security risks

Fraud is a significant risk for businesses handling international money transfers, as cybercriminals actively exploit security vulnerabilities. Common threats include phishing attacks, invoice fraud, and payment redirection scams. Without proper security measures, businesses risk financial losses, operational disruptions, and reputational damage. Companies making bulk international payments are particularly vulnerable, as hackers can intercept email communications and manipulate payment instructions. Fraudsters may impersonate suppliers, request changes to banking details, or offer unrealistically low currency transfer rates to lure businesses into fraudulent schemes.

To reduce these risks, businesses must implement strict security protocols. They should use only reputable payment transfer providers with robust fraud prevention systems, enable two-factor authentication, and verify payment details directly with suppliers before processing transactions. They should also regularly train employees to recognize scams and stay updated on evolving fraud tactics. These proactive measures will help safeguard company funds and prevent costly international money transfer problems.

How businesses can prevent common international payment mistakes

Cross-border payments can be costly and complex, but taking the right precautions can avoid common pitfalls and ensure smooth transactions. Here are a few things you need to know. 

Compare providers for better rates

Finding the cheapest way to transfer money internationally starts with comparing service providers. Banks often charge high fees and add hidden markups to international money exchange rates, making transactions more expensive. Instead, choose specialized online payment platforms that offer transparent pricing and competitive rates.

Double-check recipient details

Mistakes in account numbers, IBANs, or SWIFT/BIC codes can cause delays, failed transfers, or even lost funds. Before confirming a transaction, verify all recipient details carefully to ensure your money reaches the right destination without issues.

Be aware of hidden fees

Many overlook international money transfer charges, which add up quickly. Some providers offset low fees with poor exchange rates, increasing costs. Since Trump has imposed new tariffs, saving on hidden fees is more important than ever. Reducing transfer costs helps offset expenses and keeps more money in your pocket when facing hefty tariffs.

Prioritize security to protect your funds

To safeguard your savings, use only reputable and secure payment providers. Enable two-factor authentication, verify recipient details, and avoid unsolicited requests for banking information to prevent fraud and unauthorized transactions.

Stay informed about local regulations

Each country has different financial regulations, which can impact ways of sending money abroad. Research compliance requirements for both the sending and receiving countries to prevent delays or rejected transactions due to regulatory issues.

MTFX - Make international payments with confidence

Making international payments doesn’t have to be complicated. With MTFX, we help streamline your overseas money transfers, making them safer, more cost-effective, and easier to manage. Here’s how MTFX stands out: 

Transparent fees: We believe in complete transparency. With MTFX, you’ll know exactly what you’re paying for—no hidden fees or surprise charges. This ensures you can make informed decisions when sending funds internationally. 

Bank-beating exchange rates: We offer competitive, bank-beating currency transfer rates, giving you better value for your money. Our forward contracts also allow you to lock in a great rate for future transactions for different pairs like CAD to GBP or CAD to EUR, helping you plan your payments with peace of mind.

Local expertise, global reach: Our local expertise and global reach give you the advantage of understanding the financial nuances of your destination country. MTFX provides you with the right knowledge to navigate international payments confidently.

Professional guidance: Our team of experts is always here to help. With personalized consultancy, we ensure you understand the best options for sending money abroad and avoid common mistakes.

Send money anywhere, anytime with MTFX

International money exchange doesn’t have to be stressful. Understanding common mistakes and taking proactive steps can make global transactions smoother, more cost-effective, and hassle-free. Whether it’s choosing transparent providers, timing your transfers wisely, seeking expert advice, or planning for taxes, these strategies will help you make smarter financial decisions.

At MTFX, we simplify international payments, offering competitive rates and seamless transactions. Sign up today and let us guide you through the process and ensure your payments are efficient, secure, and cost-effective.

FAQs

1. How can businesses ensure they get the best exchange rate?

MTFX offers competitive, bank-beating currency transfer rates and forward contracts to lock favourable rates for future transactions. Our experts track global currency trends, helping you time your international money exchange effectively and maximize your savings.

2. Are there any hidden fees when using MTFX?

No. We pride ourselves on transparent pricing with no hidden international money transfer charges. You'll always know exactly what you're paying for, ensuring cost-effective ways of sending money abroad with no surprises.

3. How can businesses get started with MTFX?

Getting started is simple. Contact us, and our team will guide you through the process. Businesses can set up an account with MTFX to transfer money seamlessly and track transactions in real-time, ensuring full transparency and control over international payments.

4. What are the risks of international payments? 

Common risks include hidden fees, fluctuating currency transfer rates, double taxation, and unfamiliar regulations. To minimize these risks, research your options, time your transactions wisely, and use a trusted provider like MTFX.

5. How do I securely transfer money internationally? 

Use a reliable payment provider like MTFX, which offers secure overseas money transfer services, transparent fees, and compliance with international financial regulations. Always verify recipient details and use two-factor authentication for added security.

6. What’s the cheapest way to transfer money internationally? 

The cheapest way to transfer money internationally is to use a provider with low fees and competitive exchange rates. MTFX helps you save by offering transparent pricing and bank-beating rates, making your transactions more cost-effective.

7. How can MTFX help with international money transfer charges? 

MTFX provides transparent and competitive rates, ensuring that you avoid unnecessary international money transfer charges. Our team helps you understand the total transfer cost upfront and advises you on the most cost-effective ways to transfer money abroad.