Country to Country Payments – Local Currency Payments
From wire transfers to global ACH transfers, making country to country payments presents a number of common business challenges with overseas vendors. At Tipalti we specialize in taking on the challenges presented by global mass payments so that our clients don’t have to do as much as think about these issues. This in turn allows for our clients to focus on their business so that they can continue to perfect and innovate within their industry without having to allocate any time or effort toward addressing the numerous hurdles that come with facilitating country to country payments.
Paying In Local Currency
One very common request that payees make when they are stationed in a foreign territory is that they receive their payment in their local currency. The reason for this is that most businesses operate using their local currency and so it’s much more convenient for them to receive their payments in the currency that they are used to running with.
Payment methods vary between each country as each country has its own unique banking regulations. It’s something that we never consider, but unfortunately it’s not a “one size fits all” system when making country to country payments.
Paying In a Timely Fashion
Having the ability to facilitate the main methods of payment can make all the difference. Each form of tender has a time and cost associated with it. Depending on the banking system of the payee’s country, only certain forms of payment will be available to send to a payee. Due to this it’s important again, to know the ins and outs of the options allotted to each payees territory as you’ll want to make payments in their preferred form while at the same time considering that they will want their payment as soon as possible.
The IRS requires that all payments made to foreign (of course, domestic too) vendors be made in accordance with IRS regulations. Since this is the case it is extremely important to collect the all the necessary paperwork from each and every payee.
Patriot Act Compliance
Don’t get in trouble for making payments to payees who are tied to blacklists. Having a clear understanding of your vendors comes by scanning them against US and international blacklists such as OFAC. This will ensure that you’re not sending money to terrorist or criminal groups.