Getting Started with International Business Payments
Author
Woalet Team
Updated
August 2026
Read Time
8 min read
Why Not Just Use Your Bank?
Banks route cross-border payments over SWIFT, where each correspondent in the chain deducts a lifting fee and the sending bank applies its own FX markup. A single wire typically costs $25-50 in fees plus a 1-2% spread, and settles in two to five business days. Because intermediaries deduct along the way, your supplier often receives less than the invoiced amount, which creates reconciliation work at both ends. Local-rail settlement pays the supplier domestically in their own currency, so the full invoiced amount arrives, usually the same day, at a single transparent margin.
Understanding Exchange Rates and Fees
Every international transfer involves two costs: the exchange rate markup and the transaction fee. The exchange rate is the price of converting one currency to another. Banks typically add 1-2% markup on top of the real mid-market rate. Woalet adds 0.3-0.8% markup for competitive pairs. Transaction fees vary from $2-15 depending on the corridor and amount. Always check both the rate and fee before confirming a transfer.
Making Your First Payment
Getting started is simple: 1) Register your business and add authorised signatories. 2) Complete KYB verification - certificate of incorporation, UBO disclosure and signatory IDs, typically 1-3 business days. 3) Add a beneficiary with their bank account details. 4) Check the exchange rate and fee - both are locked in once you confirm. 5) Fund the payment from your business account. 6) The beneficiary receives funds typically within 1-3 hours. The whole process from signup to first payment takes under 30 minutes.
Security and Compliance
Cross-border business payments are heavily regulated to prevent money laundering and fraud, so KYB (Know Your Business) verification is required before your first payout. Verification typically takes 1-3 business days and covers the company, its ownership structure and its authorised signatories. Payments are monitored for suspicious patterns, and larger trade payments may need supporting invoices or contracts. Woalet holds client funds in segregated accounts with tier-1 banks.
Tips for Your First Payments
Send a small test payment first to confirm the beneficiary details are correct - a wrong account number costs far more to unwind than to prevent. Exchange rates move constantly, so lock your rate once finance is ready to release. Never accept changed bank details by email alone; confirm them with a known contact, because invoice redirection fraud targets exactly this step. Batch and schedule recurring supplier and payroll runs to cut manual work and per-transaction cost. Keep invoices, contracts and payment references together so each settlement reconciles cleanly at audit. Compare total landed cost - fees plus FX margin - not the headline fee.