What is excellent customer service in cross border payments? Part 2

What is excellent customer service in cross border payments? Part 2

Otabek Nuritdinov

Head of Business Development at Safenetpay

Views 719

What is excellent customer service in cross border payments? Part 2

21.02.2020 10:30 am

Your business involves cross-border payments. What are the questions that you should ask your payments services provider about forex costs and security?

Most business-to-business (B2B) payments that cross national borders involve foreign exchange (forex) transactions. In other words, at some point in the process, one currency will be bought and another one will be sold.

This can be a costly process. Suppose your business is making a payment from your country X to one of your suppliers in country Y, where the currency is different. Usually, your bank and your supplier’s bank will not have long-standing relationships. This means that the payment will go through at least one correspondent bank which is known to both. Needless to say, the correspondent bank will charge a fee for handling the transaction – and that fee will usually be paid by you.

Worse, the bank that is handling the forex transaction will also be making money – effectively paid by your business – from that transaction. Bank’s buy and sell currencies in large quantities at the published mid-rates. When they provide a currency to a client, they will usually impose a margin, which may be as high as 1%. They may also charge other fees.

An obvious question to ask your payments services provider is: what are the costs of forex transactions? Safenetpay is not a bank. We do not have to operate through a network of correspondent banks. We have low overheads, and can impose much lower margins on forex transactions. As a rule of thumb, our forex charges are about one quarter of those of traditional banks.

Another hard question concerns security. If your business is involved with retailing, with thousands of customers (or more), there are many things that you can do to reduce the risks of cyber-crime. What are the precautions that your payments services provider is taking? At Safenetpay, our products comply with the toughest security standards globally. If you need help or advise, our experts are at your service at all time.

If you’re making cross-border payments on a regular basis, don’t be afraid to ask hard questions. Low and transparent forex costs and evidently high security standards are part of the excellent service which your business deserve.

Read "What is excellent customer service in cross border payments? Part-1" here https://financialit.net/blog/cross-border-payments/what-excellent-customer-service-cross-border-payments-part-1

Visit Safenetpay's website: https://www.safenetpay.com/


Latest blogs

Shuvo G. Roy Mphasis

Reboot 1.0: How financial services technology can enable the supply chain to support a post-lockdown boom

Ground control and Captain Tom When veteran Captain Tom Moore decided to walk one hundred laps of his garden before his 100th birthday to raise funds to support NHS heroes battling Covid-19 from the frontline, he never imagined that he would Read more »

Lisa Gutu Salt Edge

Building a PSD2 compliant channel: challenges and opportunities for financial institutions

PSD2 obliges ASPSPs including banks, e-wallets, prepaid cards and other companies that offer payment accounts to provide at least one channel for secure communication with third party providers (TPP). Even neobanks or e-money institutions, including Read more »

Thomas Pintelon Capilever

Credit origination - A lot of innovation on the horizon

While consumer credits are becoming more automated and user-friendly to request, all other credits are often still very manual and labor intensive to originate. In this (relatively long) blog I will try to give a description of the (potentially Read more »

Kelly Kearsley Hourly.io

Time Card Theft is a Big Problem. Here's How to Stop It.

Trust is at the core of every employer-employee relationship. You trust your people to do their jobs, and they trust you to compensate them for their work. Most of the time, it works. However, there's always the person looking to bend the rules or Read more »

Daria Afanasyeva UTP Merchant Services Ltd

Cybersecurity – Online payments are getting more secure

Ever since we've been able to buy anything we need with just a click of a button on our laptops or phones, online sales have been consistently increasing each year. Just last year, the total value of UK retail sales was £394 billion, with an average Read more »

Related Blogs

Otabek Nuritdinov Safenetpay

How do we boost trust at Safenetpay?

    Safenetpay is a Business-to-Business (B2B) payment services provider. Like many other parts of the financial services industry where new technology and new regulations are causing a lot of change, ours is an exciting place. There is a lot of Read more »

Maureen Verbraeken Form3

Removing barriers to International trade through state-of-the-art technology

At Form3, we’re changing the way international payments are made, for the better. A business wishing to trade internationally currently has to deal with a complex infrastructure that is hard to navigate and expensive to maintain. Through our Read more »

Otabek Nuritdinov Safenetpay

What is the market for payments services?

Cross-border payments are a part of your daily life. Banks and non-bank payments institutions want to help you to make those payments. So, what does the USD231bn cross-border payments services market look like? Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel