5 Best Ways to Pay Overseas Suppliers: A 2025 Guide

The World Bank reported that, on average, sending remittances globally costs a staggering 6.65% of the amount transferred.*

High fees, hidden costs, frustrating delays, and currency fluctuations—all this hassle just to pay your suppliers and keep your business running. When you’re managing international invoices, unexpected challenges can pop up, but the last thing you need is for payments to disrupt your business flow. 

In this 2025 guide, we’ll break down the best ways to pay international vendors, covering speed, fees, and methods. We'll highlight the pros and cons of each so you can choose the best option, whether you need to send a large sum, make a fast payment, or keep costs low.

An international wire transfer is an electronic way for individuals or businesses to send money across borders from one bank account to another, using a network of banks and financial institutions. One of the most widely used systems for this is the Society for Worldwide Interbank Financial Telecommunication (SWIFT). 

While bank wire transfers are reliable, the process can be complicated due to the participation of multiple banks, different currencies, and varying regulatory compliance in different countries. As a result, the transfer speed and transaction costs can differ based on the countries and banks involved.

International Wire Transfer Speed and Fees

*Information retrieved from SmartAsset.*

How to Pay Suppliers Using International Wire Transfer

To pay an overseas vendor using an international wire transfer, first, check with your bank to see if they offer this service, as not all banks do. If they do, you can typically initiate the transfer online or at a branch.

You will need to provide the recipient’s details, including their name, address, their bank’s SWIFT/BIC code, and bank account information or IBAN (if they are in Europe). After that, specify the amount to be transferred and the currency.

A common issue with wire transfers is that the recipient may not receive the exact amount sent, as fees are deducted along the way. To avoid this, it's important to check with your bank regarding who pays the fees. You typically have three options: OUR, where the sender covers all fees; SHA, where fees are shared; and BEN, where the recipient pays the fees. With SHA or BEN, the recipient may not receive the full amount sent.

If you want to track your wire transfer made through SWIFT, you can request a proof document called an MT103 document. This document provides confirmation and details about the transaction.

International Wire Transfer Pros and Cons

Statrys is a licensed payment service provider offering multi-currency business accounts for businesses in Hong Kong, Singapore, and the BV. It is specifically built to facilitate cross-border payments, allowing you to hold and send 11 major currencies at favourable rates whenever you choose. The currencies include HKD, AUD, CAD, CHF, CNY, EUR, GBP, JPY, NZD, SGD, and USD.

Within the Statrys platform, you can initiate international wire transfers (SWIFT) at competitive rates or use the "local payment system" to pay like a local at a lower cost. For international payments, you can lock in exchange rates using FX options.

Statrys is particularly suitable for paying Chinese suppliers, as it is based in Hong Kong and supports both HKD and CNY.

Statrys Speed and Fees

See the breakdown of the fees on Statrys' pricing page.

How to Pay Suppliers Using Statrys

To pay overseas suppliers with Statrys, simply sign up for an account online by providing your business information and completing identity verification through a fully digital KYC process. Most customers are approved within 3 business days.

Once your account is set up, you can initiate payments in multiple currencies directly from the application. Input your recipient's details and currencies, and track your payments in realtime. Additionally, you can request a free MT103 for SWIFT payments, ensuring transparency and a clear transaction record that you can send as proof to your suppliers.

Pros and Cons

A money transfer app or payment platform is a tool that allows users to send and receive money electronically. These platforms typically rely on various payment methods, such as wire transfers, card payments, cash pickups, mobile wallets, or their own partnership network, to complete transactions. 

While many of these platforms are designed for peer-to-peer (P2P) transactions, some also cater to businesses by offering specialised features like batch payments, recurring payments, or multi-currency accounts. This makes them a practical option for businesses to pay overseas suppliers.

Examples of popular apps for businesses include:

• PayPal Business: A widely recognised platform, suitable for smaller transactions but with relatively higher fees.
• Payoneer: Specialises in facilitating cross-border B2B transactions in multiple currencies.
• Stripe: Known for handling ecommerce transactions and subscription-based payments.
• Xe: Offers competitive exchange rates and caters to larger international transfers.

However, it's important to note that not all apps support every currency or country, and most have transaction limits that are more restrictive than traditional banks. As such, they are generally more suitable for small businesses. Before committing to any platform, it's crucial to review the service limitations to ensure compatibility with your business's needs.

Money Transfer Apps Speed and Fees

How to Pay Suppliers Using Money Transfer Apps

To get started, create an account on your chosen app by providing your business and personal details, verifying your identity, and linking your bank account or card.

Once set up, you can initiate a transfer by entering your supplier’s payment details, such as their email, mobile number, or bank account info for direct transfers. The app will usually display estimated fees and delivery times. You can also track the transfer on the website or on the application.

If making a bank transfer, ensure you clarify who will cover any potential third-party fees—the sender or the recipient.

Money Transfer Apps Pros and Cons

Credit cards are another popular payment option, especially in ecommerce, offering flexibility and immediate access to funds.

Business credit cards, in particular, are designed to do more than just facilitate supplier payments. They provide the added benefit of deferred payment options, potential rewards programs, and short-term access to funds. Additionally, they can help build a company’s credit profile for future financing opportunities. Many business credit cards also offer the option to pay in instalments, allowing businesses to manage larger expenses without straining cash flow.

Credit Card Speed and Fees

Credit card fees are high due to transaction processing costs, including fraud prevention, network maintenance, and non-payment risks. Fees come from the card issuer, network, and payment processor. Credit card acceptance is also more expensive than other payment methods. 

Additionally, if the balance is not paid in full by the due date, credit cards can incur high interest charges, typically between 15% and 25%.

How to Pay Suppliers Using Credit Card

To pay with a credit card, enter the supplier’s payment details through their invoicing system or payment portal. Provide your card information, confirm the payment amount, and complete the transaction. 

Before entering your credit card details on any website or portal, make sure to verify the site's authenticity and security. Look for "https" in the URL and check for a secure payment gateway. Avoid saving your card details on any platforms.

For added security, consider using a virtual card. This disposable card number can help protect your real card details while making payments online.

Credit Card Pros and Cons

A Letter of Credit (LC) is a document issued by a bank guaranteeing payment to a supplier on behalf of a buyer once the conditions specified in the agreement are met or the necessary documentation, such as shipping documents, invoices, and inspection certificates, is presented and verified. 

It’s often used in international business to provide security for both parties. 

Although it may seem traditional, the letter of credit remains widely used, as evidenced by its steady market growth. The market size is projected to increase from USD 4.38 billion in 2024 to USD 4.6 billion in 2025.* This growth is driven by factors like the complexity of international transactions and concerns over creditworthiness.

A Letter of Credit (LC) Speed and Fees

How to Pay Suppliers Using A Letter of Credit (LC)

To pay suppliers using a Letter of Credit (LC), the buyer and supplier need to first agree on the terms of the contract, including the use of an LC for payment. 

The buyer’s bank will then issue the LC, which outlines the conditions under which payment will be made. These conditions may include submitting specific documents, such as a bill of lading, commercial invoice, or insurance certificate. 

Once the supplier fulfils these conditions, they present the required documentation to their bank, which forwards it to the buyer’s bank for verification. After the buyer’s bank confirms that all terms have been met, the payment is released to the supplier.

A Letter of Credit (LC) Pros and Cons

• Paper Cheques: Although becoming increasingly outdated, paper cheques are still occasionally used for international payments. However, they come with significant downsides, such as long processing times, the risk of loss or theft, and the possibility of delays due to mailing and bank clearing processes.
• ACH Transfer: ACH payment is a fast and affordable way to send funds, but their use for international payments is limited, as they are primarily restricted to US-based transactions. Businesses trading solely with US-based suppliers may find this method useful due to its low costs and efficient processing times.
• Debit Card: Businesses may use prepaid debit cards for smaller, one-off payments, but they're generally not the best option for larger transactions.

• Availability: Ensure that your chosen payment method is accepted by your supplier. Some businesses may have limitations or a preference for certain payment channels, such as avoiding credit card networks with higher fees.
• Currency Choice: The currency chosen for the transaction can influence the most suitable platform or method, as some payment providers may offer better rates for specific currencies.
• Intermediary Fees: If you're using a bank transfer method, be aware of potential hidden charges due to third-party bank fees. It's important to confirm with your provider and clarify who is responsible for these fees, as they could affect the recipient's funds.
• Exchange Rates: Fluctuating exchange rates are a key factor that directly influences the total cost of your payment. A slight change in the exchange rate at the time of transfer can either cost you more or save you money. Timing your payment or locking in exchange rates in advance may help you avoid unfavourable currency fluctuations. Look for providers that provide FX services if the exchange rate is your concern.
• Compliance: Understanding country-specific restrictions will keep your transactions smooth and avoid legal complications. For example, some countries (like China) have specific limits on international payments, which could impact the total transaction amount.

• Here are some strategic tips to help you manage and streamline your payments to overseas suppliers.

Negotiate Payment Terms with Suppliers

Negotiating payment terms is one of the easiest ways to keep your cash flow healthy and reduce pressure when paying suppliers. Here’s what you can try to negotiate:

• Payment Due Date: Ask if you can extend the payment deadline (e.g., 30, 60, or 90 days). This gives you more time to pay and can help ease cash flow challenges.
• Early Payment Discounts: Some suppliers are willing to offer discounts (usually 1-3%) if you pay early. 
• Payment Installments: For large purchases, ask if you can pay in instalments, such as a deposit followed by payments at certain milestones. This can help spread out the cost.

However, it’s best to keep in mind that negotiation is not about just getting the lowest price. It's about finding a solution that works for both parties and builds a strong, long-term relationship.

Negotiate FX terms and Options

For overseas payments, negotiating FX terms and foreign currency conversion fees can help reduce costs and mitigate currency risks. Here’s what to consider:

• Forward Contracts: Lock in an exchange rate for future payments, reducing the risk of unfavourable fluctuations. This is ideal for high-value, recurring transactions.
• FX Hedging with Options: FX options provide flexibility by allowing you to exchange currency at a specific rate in the future while still benefiting from favourable fluctuations.
• Negotiate Lower FX Rates for High-Volume Transactions: If your business engages in high-volume international transactions, you can often negotiate better exchange rates with your FX provider. 

Select the Right Payment Method

The payment method you choose should be tailored to the transaction's size, frequency, and urgency. 

For example, larger transactions may warrant more secure, traceable options like bank transfers, while frequent smaller payments might be better handled through platforms with lower fees, such as digital wallets or global payment systems. Aligning the payment method with your specific needs ensures efficiency and cost-effectiveness.

Selecting the right payment method for overseas suppliers involves balancing cost, speed, and convenience. 

International wire transfers are reliable for large payments but come with high fees and slow processing times. Statrys offers an affordable option for businesses in Hong Kong, Singapore, and the BVI, especially when dealing with Asian markets. Money transfer apps are suitable for smaller transactions, while credit cards provide flexibility but often have higher fees. Lastly, letters of credit provide security for high-risk transactions, though they are more complex and time-consuming. 

By assessing your specific needs, you can choose the best payment method for your business needs.