Woalet

Cross-Border Payment

A financial transaction that involves transferring money from one country to another, across international borders.

Full Explanation

Cross-border payments are transactions where the sender and recipient are in different countries. These payments are essential for international trade, remittances, business payments, and personal transfers. They involve currency conversion, compliance with local regulations in both countries, and passage through banking systems in multiple jurisdictions.

Related Terms

Trade Remittance

A cross-border transfer that settles a commercial obligation - a supplier invoice, contractor fee or intercompany payment.

Foreign Exchange (FX)

The global market where currencies are traded. Also the rate at which one currency can be exchanged for another.

Frequently Asked Questions

How long do cross-border payments take?

Typically 1-5 business days depending on the countries, banks, and payment method. Modern solutions like Woalet offer same-day or instant settlement.

Are cross-border payments expensive?

Traditional banks charge 1-2% in FX markup plus $15-50 in fees. Digital providers charge 1-3% plus $2-10 in fees.

What documents are needed?

Typically recipient name, account number, bank code (SWIFT, IBAN, routing number). Some countries require additional info.

Are there limits?

Limits vary by country and payment amount. Large transfers may require documentation. Check local regulations.