Cross Border Payments Made Easy: Tips to Optimise International Transactions

Cross Border Payments Made Easy: Tips to Optimise International Transactions

Why let borders slow you down when you can optimise your international payments hassle-free? That’s the power of cross border payments.

With the expansion of globalisation, businesses are actively looking for gateways to perform client transactions in a more convenient way, taking into account the modern competitive landscape.

In this blog, we’ll understand in detail about cross border payments, what they are used for, key types, and the reliable practices to perform them safely.

What are Cross Border Payments Used For?

cross border payments are used for several purposes. The key applications include:

• Financial market transactions and global trading activities
• Travel, accommodation, and other international expense payments
• Paying dividends, interest, and shareholder returns abroad
• Charitable donations and global humanitarian contributions
• Asset acquiring, including real estate and overseas investments
• Paying salaries to international employees, freelancers, or contractors
• Investment operations across multiple markets and jurisdictions
• Goods and services purchase from foreign vendors and suppliers
• Education fees, tuition payments, and academic expenses abroad
• Healthcare services, medical bills, and insurance payments overseas
• Technology, SaaS tools, and international software subscriptions

Types of Cross Border Payments

With the need for globalisation, businesses and individuals have found innovative ways to make cross border transactions. Below are the most popular types of cross border payment solutions existing in 2025:

• Wire Transfers: Wire transfers are one of the oldest and most dependable methods of sending money abroad. This process involves a direct bank-to-bank transfer, ensuring that funds are routed securely across international borders. Although fees can sometimes be higher and the process slightly slower compared to modern options, the reliability and widespread acceptance of wire transfers make them a preferred choice for many businesses and individuals alike.
• International Checks: International checks are traditional paper-based instruments that allow you to transfer money overseas. Once deposited, the recipient’s bank converts the check amount into their local currency, making it usable in their country. While the process may take longer due to verification and clearing, it remains a safe option for those who prefer conventional banking practices.
• Foreign Exchange (FOREX) Brokers: FOREX brokers act as intermediaries who specialise in converting one currency into another for international transactions. They often provide better exchange rates than banks and can facilitate cross-border payments more efficiently. By leveraging their expertise, businesses and individuals can minimise currency conversion costs and ensure smoother global transactions.
• International Money Orders: Although less common in the digital age, international money orders are still a recognised method for sending funds abroad. They involve sending a physical paper order, which the recipient can then convert into their local currency through a bank or post office. Known for their safety and traceability, money orders remain useful in regions where modern banking infrastructure is limited.
• Cryptocurrency: Cryptocurrency has emerged as a modern, digital alternative to traditional payment methods. By bypassing banks and intermediaries, it allows individuals and businesses to transfer money globally in a matter of minutes. With blockchain technology ensuring transparency and security, cryptocurrencies offer a fast, borderless solution—though their volatility and limited acceptance still make them more suitable for certain users and industries.

Best Practices for Sending and Receiving cross border Payments

It’s important to know the best practices for performing cross border payments, so you can be safe when undertaking the process. Here are the key practices involved:

1. Understand the Costs

Before initiating any cross border transaction, take the time to clearly understand all the costs involved. These can include transaction fees, currency conversion charges, intermediary bank fees, and sometimes even hidden service charges. By being aware of these costs in advance, you can avoid unpleasant surprises and ensure your recipient receives the intended amount without unnecessary deductions.

2. Keep Abreast of Exchange Rates

Currency values fluctuate constantly, and even small shifts in exchange rates can make a big difference in the amount you send or receive. Keeping track of the exchange rate between your local currency and the one you’re transacting in helps you plan your transfers more effectively. Some businesses even schedule large payments strategically when rates are favorable, maximising value and reducing losses.

3. Ensure Regulatory Compliance

Each country has its own laws and regulatory frameworks governing international transactions. Ensuring compliance with these regulations is crucial for avoiding penalties, delays, or even blocked payments. By aligning your transactions with anti-money laundering (AML) laws, Know Your Customer (KYC) requirements, and local banking rules, you protect both your money and your reputation.

4. Maintain Accurate Records

Keeping a detailed record of all your cross border transactions is an absolute must. This includes dates, amounts credited and debited, currency conversions, and any additional charges incurred. Using spreadsheets or reliable accounting software makes this process easier and helps you stay organised. Accurate records are also invaluable during audits, tax filings, or dispute resolutions.

5. Verify Recipient Details

Errors in recipient information can cause costly delays or even result in funds being transferred to the wrong account. Always double-check details such as the recipient’s full name, bank account number, IBAN, and SWIFT code. This becomes especially important for high-value transfers running into millions of GBP, where even the smallest mistake can have serious consequences.

6. Choose Trusted Payment Channels

Not all payment channels are created equal. Always opt for reputed banks, licensed money transfer operators, or regulated fintech platforms that have a proven track record in handling international transactions. Trusted providers not only ensure your money reaches safely but also protect you from the risks of fraud, long delays, or frozen payments.

7. Use Secure Networks

The network you use to make payments is just as important as the provider you choose. Avoid conducting transactions over public Wi-Fi or on unsecured devices, as these are easy targets for hackers. Instead, always use private, encrypted connections and updated devices to ensure your sensitive financial data remains protected from cyber threats.

Conclusion

To conclude, cross border payments solutions are used for performing financial operations, such as paying salaries, making international investments, and purchasing goods. There are multiple ways to send money across borders,  ranging from wire transfers to cryptocurrency.

To send this money, you should keep track of hidden costs and exchange rates and maintain accurate records of the transactions. Moreover, always verify recipient details and utilise safe, secure, and trusted channels to avoid any sort of fraud and mistakes.

For a safe, secure, and trusted channel to make your cross border payment transactions hassle-free and seamless, consult Offshore Unipay today. We’ve been in the business for quite a long time and have actively helped several clients worldwide to simplify their international payment journey, making it both fun and worthwhile.

You can be one of those elite customers. Just click HERE to know more…