Key takeaways
- The best way to pay an overseas supplier depends on the amount, the currency, the speed you need, and how often you pay.
- Bank and SWIFT transfers feel familiar, but they can be slow and often add international bank transfer fees plus a marked-up exchange rate.
- Cards and digital wallets move fast, yet they are usually the priciest option for large international supplier payments.
- A multi-currency business account or a specialist provider tends to give the strongest mix of cost, speed and control for regular international business payments.
Paying an overseas supplier often costs more than the headline fee suggests, thanks to slow settlement and marked-up exchange rates. This guide covers the best way to pay an overseas supplier, comparing each method on cost, speed and control so you can keep more of each payment.
Jump to:
• The best way to pay an overseas supplier: comparing your options
• Comparing the methods: fees, speed and FX control
• How to cut the cost of paying overseas suppliers
• What to weigh up when paying an overseas supplier
• How to set up international supplier payments with OFX
• The bottom line on paying overseas suppliers
• FAQs about best way to pay an overseas supplier
The best way to pay an overseas supplier: comparing your options.
There is no single best way to pay an overseas supplier. The right choice depends on the amount, your supplier’s currency, how fast the funds must land, and how often you pay.
UK businesses imported £560.6 billion of goods in 20241, so getting each supplier payment right matters. Most UK businesses use one of five supplier payment methods. Below we explain how each one works, what it costs in practice, and who it suits, so you can match the method to the payment.
International (SWIFT) bank transfer
An international wire transfer through your high-street bank is the traditional route for paying overseas suppliers. Your bank sends the money over the SWIFT network, often passing it through one or more intermediary banks along the way.
A SWIFT payment is reliable and widely accepted. The trade-offs are speed and cost. Funds can take several business days to arrive, and the total cost is easy to underestimate.
That is because international bank transfer fees come in two parts: the upfront charge, plus a margin the bank adds to the exchange rate. Intermediary banks can also deduct their own fees before the money reaches your supplier. These frictions are widespread, and the Financial Stability Board reported in 2024 that cross-border payments still fall short of the G20’s goals for cheaper and faster transfers, with limited progress worldwide.2
For very large or first-time trade deals, some importers still ask for a letter of credit alongside the transfer, which gives both sides extra security. It adds paperwork and bank charges, so most day-to-day payments do not need one.
Debit and credit cards
Paying a supplier by card is quick and simple when they accept it. A card can also help with cash flow, since a credit card gives you time before the balance is due.
The downside is cost. Cards often carry foreign transaction fees and a currency conversion margin, and some suppliers pass on a surcharge. For large international supplier payments, those percentages add up fast.
Digital wallets (PayPal and similar)
Digital wallets such as PayPal are easy to set up and useful for smaller, one-off payments. Many freelancers and micro-suppliers already accept them, so onboarding is fast.
For business international money transfer at scale, wallets can become expensive. Watch for the currency conversion margin and per-transaction fees, which are often higher than a specialist provider would charge.
Multi-currency business accounts
A multi-currency business account lets you hold, receive and pay in several currencies from one place, without opening separate bank accounts in each country. You can convert when the rate suits you rather than being forced to convert on every payment.
This approach suits businesses that pay the same suppliers regularly or that also collect money from overseas customers. Holding funds in your supplier’s currency means you can pay like a local and sidestep repeat conversion costs.
Specialist money-transfer and FX providers
Specialist providers focus on cross-border payments and currency exchange. They typically offer competitive exchange rates, clear pricing, local payment rails for faster settlement, and tools to manage currency risk.
This is often the most cost-effective way to pay international suppliers regularly, especially when you combine it with a multi-currency account. You get the reach of a bank transfer with more transparency over what each payment costs.
Many specialist providers also offer real people to talk to, not just a chatbot. That support helps when a payment is time-sensitive or a supplier needs their funds confirmed quickly.
OFX Global Business Account
Receive, hold, convert and send funds across a wide range of currencies, reduce costs and gain greater control over your international payments.
Comparing the methods: fees, speed and FX control.
The table below sums up how the main supplier payment methods compare. Costs and speeds vary by provider and destination, so treat this as a guide rather than a quote.
| Method | Typical cost | Typical speed | FX control | Best for |
|---|---|---|---|---|
| International (SWIFT) bank transfer | Upfront fee plus an exchange-rate margin; intermediary charges can apply | Typically a few business days | Low | Businesses that value familiarity over cost |
| Debit or credit card | Often higher, with foreign transaction fees and possible surcharges | Fast | Low | Small, urgent payments when the supplier accepts cards |
| Digital wallet | Varies by provider; conversion margins can be high | Fast | Low | Small, one-off payments to freelancers |
| Multi-currency business account | Competitive; hold and convert on your terms | Often same day on local rails | High | Regular payments and businesses that also get paid overseas |
| Specialist money-transfer or FX provider | Competitive and transparent; varies by provider | Often same day on local rails | High | Frequent international business payments |
How to help cut the cost of paying overseas suppliers.
The biggest savings on international supplier payments come from two places: the exchange rate and the settlement method. These steps address both.
- Pay in your supplier’s local currency when you can. Letting your supplier’s bank convert the money often works out more expensive than converting it yourself.
- Look past the headline fee. Check the exchange rate too, because the margin added there is where much of the cost hides.
- Hold funds in a multi-currency business account and convert when the rate suits you, rather than on every payment.
- Batch your payments. Sending several international supplier payments together can save time and reduce per-transfer charges.
- Use FX tools such as Forward Contracts* or Limit Orders^ to lock in a rate ahead of time and protect against currency swings.
If your business both pays and gets paid in the same currency, you can match that income against your outgoings. This natural hedge means you convert less often, which cuts costs on paying overseas suppliers over the year.
It also helps to review your supplier payment methods every so often. A provider that suited a handful of payments a year may cost you more once volumes grow, so compare your options as your business scales.
What to evaluate when paying an overseas supplier.
The right method can change from one supplier to the next. Run through these factors before each payment.
- Total cost: add the upfront fee and the exchange-rate margin together, not just the headline charge.
- Speed: confirm when your supplier needs the funds and whether local rails can settle faster than SWIFT.
- Currency and reach: check the provider supports your supplier’s currency and country.
- Control: decide whether you want to hold currency and convert on your terms.
- Security and support: look for a regulated provider with fraud monitoring and real people to call when you need help.
With OFX, you can pay international suppliers in 30+ currencies to more than 180 countries3. Payments sync with Xero and QuickBooks Online, and 24/7 human support is on hand by phone, email and online chat3. You can try the platform with a 30-day free trial3.
Pricing is straightforward. The Standard plan is £0 a month3. The Full Suite plan is £75 a month including 5 users, with each additional user at £10 a month3. Custom plans are available for larger or multi-entity businesses.
How to set up international supplier payments with OFX.
Getting started is quick, and you can begin before verification is complete. Here is how to pay overseas suppliers through an OFX Global Business Account.
- Register online: create your account and add your business details.
- Get verified: the OFX team confirms your identity, usually within a couple of business days, while you explore the platform.
- Add and hold funds: top up in the currencies you need and hold balances until the rate suits you.
- Add your recipients: save each supplier’s bank details once, then reuse them for future payments.
- Pay and track: send single or batch payments, sync them with Xero or QuickBooks Online, and follow each transfer to completion.
Because OFX uses local payment rails rather than SWIFT alone, many payments settle the same day. That speed matters when a business international money transfer is holding up a shipment or a supplier relationship.
The bottom line on paying overseas suppliers.
The right supplier payment method comes down to four variables: the amount, the currency, how fast the funds need to land, and how often you pay. Most UK businesses default to a bank transfer, but that default often costs more than it should.
Bank and SWIFT transfers feel familiar but can be slow and costly once fees and exchange-rate margins stack up. Cards and digital wallets suit small, urgent payments, though they tend to be the priciest choice at scale.
For regular international business payments, a multi-currency business account or a specialist provider usually gives the strongest mix of cost, speed and control. OFX combines these with local payment rails, transparent pricing and 24/7 human support. That lets you pay suppliers confidently and keep more of your money working for the business.
See how straightforward paying overseas suppliers can be. Registration takes under 10 minutes. See our business pricing for more details.
Frequently asked questions about best way to pay an overseas supplier:
What is the best way to pay an overseas supplier?
There is no one answer. For occasional small amounts, a card or digital wallet is convenient. For regular or larger international business payments, a multi-currency account or specialist FX provider usually offers better rates, faster settlement and more control.
For a high-value deal with a brand-new supplier, a letter of credit can add security, though it brings extra paperwork and bank charges.
How long does it take to pay an overseas supplier?
A SWIFT payment through a bank can take several business days, partly because of intermediary banks. Providers that use local payment rails can often settle the same day, depending on the currency and destination. In a 2024 Atlanta Fed survey, about two-thirds of payment service providers settled cross-border payments within one business day.⁴
What is the cheapest way to pay international suppliers?
Usually it is a specialist provider or a multi-currency business account. You avoid stacked international bank transfer fees and can convert currency at a competitive rate. Always compare the exchange-rate margin as well as the upfront fee.
Should I pay a supplier in GBP or their local currency?
Paying in your supplier’s local currency is often cheaper. If you pay in GBP, the supplier’s bank handles the conversion. It may apply a less beneficial rate, so you lose visibility over the true cost.
What details do I need to pay an overseas supplier?
You typically need the supplier’s name, bank name, account number or IBAN, and the bank’s SWIFT/BIC code. Some countries use extra codes, so confirm the exact requirements before you send an international wire transfer.
Can I pay a supplier by card if they only accept bank transfer?
Not directly, but some providers let you fund a bank transfer using a card. This can help cash flow, though card and conversion fees make it one of the costlier supplier payment methods for large amounts.
Is my money safe with a non-bank provider?
The FCA has confirmed stronger safeguarding rules for payment and e-money firms that took effect on 7 May 20266.
In the UK, OFX is regulated by the Financial Conduct Authority as an electronic money institution (Firm Reference Number 902028)5. OFX is not a bank, and so you are not protected by the Financial Services Compensation Scheme when you send money with OFX.
With OFX, your money is protected by advanced transaction monitoring, and OFX is overseen by 50+ regulators globally5. Learn more about how OFX keeps your money and information secure.
Looking for an alternative to your bank?
References
- https://www.ons.gov.uk/economy/nationalaccounts/balanceofpayments/bulletins/uktrade/december2024
- https://www.fsb.org/2024/10/annual-progress-report-on-meeting-the-targets-for-cross-border-payments-2024-report-on-key-performance-indicators/
- https://www.ofx.com/en-gb/business/pricing/
- https://www.atlantafed.org/research-and-data/publications/take-on-payments/2024/11/04/cutting-through-complexities-of-cross-border-payments
- https://www.ofx.com/en-gb/faqs/how-ofx-helps-protect-your-money/
- https://www.fca.org.uk/news/press-releases/payment-safeguarding-rules-changes
*If you book a Forward Contract, it may mean losing out if the market rate improves because you’re contracted to settle at the agreed rate. Read more. Forward Contracts are not available for clients in Singapore. NZForex issues derivatives to wholesale clients only. Retail clients are not permitted or eligible to enter into any Forward Contract.
^If you book a Limit Order, it may mean losing out if the Market Rate continues to move above your Target Rate. There is no guarantee that your desired rate will be reached. Once the order is triggered, the transfer is binding and cannot be voided.
The contents of this article are general information only and do not constitute financial advice. Consider your own objectives, financial situation and needs before acting.
