Guide
B2B cross-border payments: how they work and what they cost
Most businesses that pay or get paid across borders have the same complaints: fees they did not expect, rates they could not check, and payments that arrive late or not at all. This guide explains how B2B cross-border payments move, what international wire transfer fees are made of, why payments fail, and how to compare one provider with another.
Last reviewed by Sean Rice, Chief Operating Officer
- Biggest cost
- Usually the exchange rate margin, not the fee
- Hidden cost
- Correspondent bank deductions on wires
- Compare by
- The amount that arrives, for the same amount sent
- Stablecoins
- Fast and available any day; the bank leg still applies
The question: when your business pays or gets paid in another country, where does the money go, what does it cost, and how do you know you are getting a fair deal?
How B2B cross-border payments work
A cross-border payment has two parts: converting the currency, and moving the money from one bank to another. Within one region, the second part runs on a local rail. Between regions, it usually runs on SWIFT, the messaging network banks use for international wires.
| Rail | Currency | Reach |
|---|---|---|
| SWIFT wire | Any, most often US dollars | Worldwide, often through correspondent banks |
| SEPA | Euros | The euro payments area |
| Faster Payments | Pounds sterling | Domestic sterling transfers |
| UAE local transfer | Dirhams | Domestic dirham transfers |
When the sending and receiving banks have no direct relationship, a wire passes through one or more correspondent banks. Each one adds time, and may take a fee from the amount.
What international wire transfer fees are made of
| Cost | Where it shows |
|---|---|
| Sending fee | A line on your statement from your own bank or provider |
| Exchange rate margin | Built into the rate you are given; rarely shown separately |
| Correspondent deductions | Taken from the amount in transit; the receiver sees less |
| Receiving fee | Charged by the receiver's bank on arrival |
The exchange rate margin is the one most businesses miss. Two providers can charge the same sending fee and deliver quite different amounts, because one rate is further from the market than the other.
Who pays the charges: OUR, SHA and BEN
Every wire carries a charge option. OUR means the sender pays all charges. SHA means each side pays its own bank, and correspondent fees usually come out of the amount. BEN means every charge comes out of the amount. If your supplier expects the full invoice amount, agree the option before you send.
How to compare two quotes
The only number that settles the question is the amount that arrives. To compare providers fairly:
- Ask each one what will arrive in the receiving account for the same amount sent, at the same moment.
- Divide the amount received by the amount sent. That is the effective rate, with the margin and fees inside it.
- Compare each effective rate with the market rate at the time of the quote. The gap is the true cost of the payment.
- Check whether the rate is locked when you approve, or set later when the money moves.
- Ask whether correspondent banks are on the route, and who pays their charges.
Our page on how a conversion is priced breaks down the same parts for stablecoin conversions.
Why cross-border payments fail or get delayed
- Name mismatch. The beneficiary name does not match the account holder exactly.
- Missing details. No SWIFT code, an incomplete address, or a missing payment reference or purpose that the receiving country requires.
- Compliance holds. A bank on the route asks what the payment is for and waits for an answer.
- Cut-offs and holidays. The payment misses the day's cut-off, or lands on a holiday in one of the countries on the route.
- Account problems. Some banks restrict or close accounts that receive money from crypto businesses. Read will my bank close my account if I receive money from crypto?
Most of these are avoided by checking details before the first payment and having someone to call when a payment stalls.
Where stablecoins fit
Stablecoins such as USDT and USDC move between wallets any day of the week, usually within minutes, for a small network fee. For a business, they are most useful at the edges: receiving from customers who want to pay that way, or paying suppliers who ask for them.
They don't remove the bank leg. Once stablecoins are converted to a currency, that currency still moves over a bank rail with its own cut-offs. Read our guide to how a stablecoin off-ramp works, or see how businesses accept stablecoin payments.
How Sentvia handles cross-border payments
- Accounts in your company's name in US dollars, euros, pounds and dirhams, each paid over its own rail. See multi-currency accounts.
- Stablecoins in and out. Receive USDT or USDC and convert them, or pay out in stablecoins where the recipient asks.
- Quotes locked before you commit, so you see the rate before money moves.
- Approved beneficiaries and approval flows on every outgoing payment. See payments.
- A named contact who knows your payments, after a dedicated onboarding officer has set you up.
This guide is general information, not financial advice.
FAQ
Common questions
- What are B2B cross-border payments?
- Payments between businesses in different countries, such as paying an overseas supplier or receiving from a foreign customer. They usually involve a currency conversion and an international payment rail such as SWIFT.
- What do international wire transfer fees include?
- Up to four things: the sending bank's fee, the margin in the exchange rate, deductions by correspondent banks along the route, and the receiving bank's fee. The exchange rate margin is often the largest, and it rarely appears as a separate line.
- What do OUR, SHA and BEN mean on a wire?
- They say who pays the charges. OUR: the sender pays all of them. SHA: the sender pays their own bank and the receiver pays the rest. BEN: all charges come out of the amount sent. With SHA or BEN, the receiver can get less than the invoice.
- Why did my payment arrive short?
- Usually because a correspondent bank on the route took a fee from the amount, or the receiving bank charged for the incoming payment. Agreeing who pays charges before you send, and choosing the charge option to match, avoids the gap.
- Are stablecoin payments cheaper than bank wires?
- Not automatically. Moving the stablecoins usually costs a small network fee and is fast, but converting into or out of a currency has its own rate, and the bank leg still has its own costs. Compare the amount that arrives, not the headline fee.
- How long do cross-border payments take?
- It depends on the rail, the banks on the route, cut-off times and holidays in each country. Stablecoin transfers are near-instant, but the bank leg follows banking days. Processing times depend on currency, jurisdiction and bank rails used.
Get started
Know what arrives before you send
Tell us about the payments you expect and a dedicated onboarding officer will guide you through set-up.