6 Easy Ways to Pay International Vendors: Save Costs & Secure Your Cash Flow!
In an increasingly borderless business world, making international vendor payments has become a routine task for companies ranging from SMEs to large corporations. However, sending money across borders often presents its own set of challenges—from volatile exchange rates and high administrative fees to time-consuming banking bureaucracy.
If you are looking for the most efficient way to settle bills with overseas partners, this article breaks down everything you need to know.
What is an International Vendor Payment?
Simply put, an international vendor payment is any financial transaction that occurs between organizations or individuals in two different countries.
The most common example is international trade: for instance, Company A in Indonesia imports raw materials from Company B in South Korea. Once the goods are shipped, Company B sends an invoice, and Company A performs a cross-border payment in the agreed amount and currency. This transaction involves currency conversion and the global banking system.
What to Consider Before Making an International Transaction?
Before you hit the “send” button, consider these crucial factors to avoid unnecessary losses:
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Exchange Rate: Rates fluctuate every second. Ensure you get a rate close to the mid-market rate so your Rupiah costs don’t balloon.
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Administrative Fees: Watch out for hidden fees, such as intermediary bank charges or commission fees.
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Delivery Speed: How long will it take for the money to reach the vendor? Late payments can damage your business reputation or result in penalties.
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Security and Regulation: Ensure the platform you use is officially licensed by financial authorities, such as Bank Indonesia, to guarantee the safety of your funds.
Read Also: Pay Vendors Using a Credit Card? Here’s How It Works and Why It’s More Efficient
6 Ways to Pay International Vendors from Indonesia
Here are the options available, ranging from conventional methods to the latest digital innovations:
1. Remittance Fintech (Transfez)
Fintech platforms like Transfez are the most popular modern solutions today, focusing on speed and cost savings. Competitive exchange rates, low and transparent transfer fees, and a process that can be done entirely via a mobile app.
2. SWIFT (Conventional Bank Transfer)
SWIFT is the classic global communication network between banks. It usually involves high administrative costs (SWIFT fees + correspondent bank fees) and longer delivery times (1–3 business days).
3. Checks
Though it sounds outdated, some companies still use physical checks or bank drafts. Highly inefficient for fast transactions. There is physical risk (loss/damage), and the clearing process in the destination country can take a long time.
4. Global ACH (Local Bank Transfer)
This method allows you to send money as if you were making a domestic transfer within the destination country. Cheaper than SWIFT. However, not all platforms provide easy access to this global ACH network.
5. Peer-to-Peer E-wallets
Services like PayPal or other international digital wallets. While practical, the currency conversion (exchange rate) in e-wallets is typically very high compared to specialized remittance platforms.
6. Credit Card (Transfez Pay by Card)
The most innovative solution for paying overseas invoices while keeping your cash in your savings. You can utilize your credit card’s tenor (up to 45 days) for cash flow management. Plus, every large transaction converts into reward points or frequent flyer miles!
Read Also: Overseas Supplier Payment Strategies: Save Costs & Secure Your Cash Flow!
Tutorial: Paying Invoices Using Pay by Card
Want to try paying international vendors with a credit card? With Pay by Card Transfez, the process is simple, and your vendor does not need a card machine (EDC). They receive the funds as a standard bank transfer.
The Steps:
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Open the App: Select Transfer & Pay → choose Pay by Card.
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Upload & Fill Details: Upload your international invoice and fill in the vendor’s bank details (available for 70+ countries).
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Select Funding Source: Choose Credit Card (Supports VISA, Mastercard, JCB, and Amex).
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Confirm Fees: Check the service fee (2% for international and 1.75% for local) and the applicable exchange rate.
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Pay: Click confirm, and you’re done! The funds will be processed directly to the vendor’s account.
International vendor payments no longer have to be complicated or expensive. By choosing the right method, you can save on operational costs and manage your business cash flow more intelligently.
Download the Transfez App Today
Transfez helps you send money abroad quickly, affordably, and securely. For businesses, Transfez Bisnis simplifies international vendor payments. Whether you’re paying overseas staff, suppliers, or supporting a family member studying or working abroad Transfez is here to help. Available on Android and iOS.
