The Best Way to Pay Overseas Suppliers from Canada

Expanding your supplier network beyond Canada opens up huge opportunities—better pricing, unique products, and access to global expertise. But with international growth comes a critical question: what’s the best way to pay overseas suppliers without draining your budget or slowing down operations?

For many Canadian businesses, navigating cross-border payments can be a hassle. Between bank fees, long processing times, and currency fluctuations, paying international vendors often becomes more complicated—and expensive—than it needs to be. If you're still relying on traditional banking channels, you're likely paying more than you should and getting less in return.

That’s why choosing the best way to pay international vendors is more than just a back-office task—it’s a strategic decision. A specialized B2B international money transfer solution can help your business save money, gain efficiency, and build stronger, more reliable supplier relationships. In this blog, we’ll explore how to optimize your overseas payments and avoid the common pitfalls that trip up many growing businesses.

Understanding your payment options

Canadian businesses that pay overseas suppliers have several methods to choose from. Each offers different benefits depending on your needs—but one clearly stands out when it comes to speed, cost savings, and convenience. Let’s explore the top types of payment options and see how they compare.

Online FX and payment platforms

The most efficient way to pay overseas suppliers today is through online FX and payment platforms. These tools offer real-time exchange rates, lower fees, and faster delivery compared to traditional banks. You can send payments in multiple currencies, automate recurring transfers, and track every transaction from a central dashboard. For most businesses, this is the smartest and most cost-effective option available.

Wire transfers via the SWIFT network

Wire transfers remain a common choice for international payments, especially for large amounts. Using the SWIFT network, funds are transferred securely between banks. However, this method often involves high fees, multiple intermediaries, and delays of several business days—making it a less practical solution for frequent or smaller supplier payments.

Bank-issued letters of credit

Letters of credit are typically used in high-value or high-risk trade deals. They provide a level of security by ensuring that payment is made only after agreed-upon conditions are met. While effective for building trust in new relationships, they are complex, paperwork-heavy, and come with significant bank charges—making them less ideal for routine payments.

Key considerations when paying international suppliers

When you pay overseas suppliers, it’s not just about choosing a payment method—it’s about understanding the full picture. From hidden costs to regulatory hurdles, cross-border payments can quickly become complex without the right strategy. Here are the most important factors to consider when managing cross-border transactions for your business.

Currency exchange rates and hidden fees

One of the biggest challenges in international payments is dealing with poor exchange rates and hidden fees. Many banks and providers add a markup to the exchange rate without full transparency, which can significantly increase your costs over time. Securing the best exchange rates for overseas supplier payments is essential for managing expenses. You can achieve this by choosing the right payment solutions—ones that offer flexible options and competitive rates.

Transfer speed and delivery times

The speed at which funds reach your supplier can impact inventory, shipping timelines, and cash flow. Traditional bank transfers may take several days, while digital platforms can complete cross-border transactions in hours or even minutes. Faster payments mean smoother operations and better supplier relationships.

Compliance and documentation

International payments are subject to various regulations, both in Canada and in the supplier’s country. These rules can vary by industry and region, and failing to comply can lead to delays or penalties. Using secure payment methods with built-in compliance tools helps ensure your transactions meet all legal requirements, with proper documentation every step of the way.

Payment tracking and transparency

Knowing exactly when and where your money is in transit is crucial—especially for high-value orders. Look for payment solutions that offer real-time tracking and digital receipts. This visibility builds trust with suppliers and gives your business better control over its international payment flows.

Best practices to save on cross-border payments

Sending money internationally doesn’t have to be expensive. With the right strategies in place, Canadian businesses can reduce costs, improve efficiency, and build stronger supplier relationships. If you frequently pay overseas suppliers, here are some smart practices to help you save on every transaction, while still using the best way to pay international vendors.

Use multi-currency accounts to reduce conversion costs

Multi-currency accounts allow you to hold and send funds in different currencies without constantly converting CAD to the supplier’s currency. This minimizes exchange rate losses and helps avoid unnecessary fees. It’s especially helpful when using electronic payment methods, as you can manage multiple currencies from one dashboard.

Schedule payments strategically to hedge FX risk

Exchange rates can fluctuate daily, impacting the total cost of your payment. Timing your transfers during favourable market conditions—or locking in rates through forward contracts—can protect your bottom line. This is one of the best ways to pay international vendors while staying ahead of currency volatility.

Negotiate payment terms in your supplier’s local currency

One of the best practices for cross-border payments is to pay overseas suppliers in their local currency. This can give you greater negotiating power and help you avoid hidden conversion fees on the supplier’s end. It also demonstrates your commitment to a long-term partnership and shows that you understand and respect their preferred payment methods.

Batch payments when possible

If you’re paying multiple invoices or suppliers at once, batching payments into a single transfer can reduce transaction fees. Some electronic payment methods and FX platforms allow you to consolidate payments by currency or date—saving you time and money in the process.

Why fintech solutions are a game changer for Canadian businesses?

For Canadian companies that regularly pay overseas suppliers, fintech platforms are quickly becoming the preferred way to manage international payments. These digital-first solutions are designed to solve the pain points of traditional banking—offering faster, cheaper, and more flexible ways to handle cross-border transactions.

Lower FX margins compared to banks

Fintech providers often offer competitive exchange rates than traditional banks. While banks may add hidden markups to their FX rates, fintech platforms are more transparent and competitive. This allows businesses to save more on every transfer and stretch their international purchasing power.

Faster delivery times

Speed is critical when you’re working with global supply chains. Fintech platforms can process payments within hours or even minutes, compared to the 2–3 business days typical of bank wire transfers. This ensures that when you pay overseas suppliers, your funds arrive quickly—reducing shipment delays and improving supplier satisfaction.

Real-time tracking and automation

With traditional methods, tracking international payments can feel like a guessing game. Fintech solutions offer real-time tracking, notifications, and even automated payment workflows. This visibility and control make secure payment methods even more effective, especially when managing multiple suppliers or currencies.

Integration options with your systems

Many fintech platforms integrate easily with accounting software, ERP systems, and e-commerce platforms. This makes managing payments directly within your business workflow easier, reducing manual input and human error. When managing cross-border transactions, this level of automation and integration is a major efficiency booster.

Make overseas supplier payments easy with MTFX

When it comes to fast, affordable, and reliable cross-border transactions, MTFX is a top choice for Canadian businesses. As a leading fintech and foreign exchange specialist, MTFX provides a smarter, more efficient way to pay overseas suppliers. With powerful digital tools and highly competitive FX rates on currency pairs like CAD/USD, CAD/EUR, and more, MTFX helps businesses streamline their international payments with confidence.

Our platform gives you access to secure payment methods in over 50 currencies, with fast delivery to 190+ countries. You can lock in FX rates, automate payments, and track every transaction in real-time—giving you complete control and visibility. Whether you're managing recurring invoices or sending one-off payments, our system is built to save you time and money.

Whether you're a growing e-commerce brand, a manufacturer sourcing internationally, or a service provider working with overseas partners, MTFX is the best way to pay international vendors—combining speed, savings, and transparency in one powerful solution.

Simplify, save, and scale your global payments

Managing international payments doesn’t have to be complicated—or costly. Whether you're sending funds to a long-time partner or onboarding a new vendor, finding the best way to pay international vendors can transform how your business operates globally.

With the right tools, strategies, and partners in place, you can pay overseas suppliers quickly, securely, and without the high fees or delays that often come with traditional banking. From better exchange rates to real-time tracking and automation, the benefits of using a trusted fintech solution like MTFX are clear. Now’s the time to take control of your cross-border payments and unlock new growth opportunities around the world. 

Create an account on MTFX and discover the best way to pay international vendors—with better rates, faster transfers, and full transparency.

FAQs

1. How can I pay overseas suppliers securely?

To pay overseas suppliers securely, use secure payment methods like encrypted online platforms or regulated foreign exchange providers. Avoid using unverified systems or sending funds without proper documentation.

2. Is there a best way to pay an international invoice?

The best way to pay an international invoice is via an online FX payment platform that offers automated billing, multi-currency support, and real-time tracking for full visibility and efficiency.

3. Can I use electronic payment methods for overseas suppliers?

Absolutely. Electronic payment methods are widely used, including online banking, fintech platforms, and even integrations with accounting software. They offer speed, security, and cost savings.

4. How do cross-border transactions work?

Cross-border transactions involve sending funds from one country to another, often in different currencies. This requires a payment provider that can handle currency conversion, compliance, and international delivery.

5. What’s the fastest way to pay an overseas supplier?

The fastest way to pay overseas suppliers is through a fintech platform that offers same-day or next-day delivery—much faster than traditional wire transfers.

6. Are online payments safe for international vendors?

Yes, if you’re using secure payment methods like regulated fintech platforms with encryption, transaction tracking, and fraud protection in place.

7. How much do international payments usually cost?

Costs vary depending on the international payment method used. Banks often charge higher fees, while online platforms offer more competitive pricing and lower FX markups.

8. Can I track my payments to overseas vendors?

Yes. Many electronic payment methods offer real-time tracking, so you can monitor when funds are sent, received, and processed—adding transparency to cross-border transactions.

9. How do I reduce fees when paying overseas suppliers?

You can reduce fees by using an online FX platform that offers better exchange rates, fewer intermediaries, and options to batch payments or leverage volume discounts.