While many companies strive to become international, cross-border transactions’ significance grows intensively. Another contributing factor is the rapid growth of global trade. Unfortunately, with the increasing volume  of international payments, the relevance of related fees is also growing. Successful strategies for reducing them can significantly impact the financial situation of any business. Doubtlessly, fees can’t be eliminated entirely, but there are a few ways to minimise them.

With expanding their business over borders, every owner has to factor in the fees to pay for every international transaction. It doesn’t happen if a company is registered in the same place as a client’s card. Otherwise, an owner will bear the commission burden. It includes currency rates and the work of banks and payment service providers. This fee is usually between 1 and 5%.

How do you manage international transaction fees?

Despite the impossibility of avoiding commissions for cross-border trade, some tricks can help you reduce your financial  burden. They are absolutely legal and increase your profits while you’re selling internationally. The ways to minimise your fees are the following:

• Find the right payment platform, including locals. The conditions that they provide differ from country to country. So, look closely at every specific region to find appropriate fee poliсies.
• If it’s financially justified, you may think about creating a business division in a country or region. Thanks to this, you will avoid transaction taxes.
• Another similar option is to connect with local banks or financial institutions. Transactions carried out through them help you zero out fees as well. Indeed, they won’t cooperate with you for free, so choose what’s more profitable for you.
• Consider reorganizing those of your cross-border transaction fee payments, which must be paid in lump sums instead of percentages. Plan ahead to make them less frequent. This way, your monthly and yearly fees can go down.

International transactions are a common thing for many businesses. With global trade expanding, many companies realise the necessity of paying fees for cross-border payments. So, an intelligent strategy to minimise them can significantly impact the general profitability of a company. There are some clever ways to reduce transaction costs. Businesses should carefully study local financial ecosystem peculiarities in a particular country. It helps them find a payment platform with proper terms, come to an agreement with a regional financial institution, or even decide to open a branch there.