Complete Guide to Cross Border Payment Process

You may be based in the UK, but that doesn’t mean your business has to have the same geographical restrictions. As the world gets smaller, UK-based businesses can benefit from globalisation by selling internationally. With the value of cross border payments forecast to reach over $250 trillion by 2027¹, Wise Business is here to help you tap into one of the fastest growing segments within the global payments ecosystem.

In this article, we’re looking at what cross border payments mean for your business. We’ll look at what they are, the cross border payment flow, and frequently asked questions on the topic. We’ll also explore how Wise Business can help you receive cross-border payments with ease without high costs eating into your business profits.

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What are cross border payments?

In simple terms, cross border payments are a banking transaction where the payer and the payee are in two different countries. This also typically means that there are two different currencies involved. These transactions could be taking place between individuals, companies, or banks. You’ve probably made a cross border payment before. However, if you haven’t been a recipient, it’s important to think through all the implications to keep things as simple and low-cost as possible.

There are a number of different types of cross-border payments such as:

• bank transfers
• card-based payments
• digital and mobile wallets
• buy now, pay later
• pre-paid debit cards

How do cross border payments work?

Cross border payments may appear simple but there are a number of things that happen behind the scenes. The customer sees a checkout page with a number of options available to them. They select the option which suits them best and finishes their transaction. However, the steps involved include:

Currency changes

As cross border transactions typically mean that the buyer and seller are in different countries, this also usually involves a currency change. This means that cross border transactions need to take exchange rates, taxes, transaction fees, and bank account fees into account. In addition, banks may charge an interchange fee if the customer opts to use a debit or credit card.

Payment methods

Depending on your target market and the normal payment methods used, you may want to adjust the ways your customers can pay for your service. You’ll need to configure these setups, make them visible to customers, and take any additional processing fees into account.

Fraud protection

As a business owner, you’ll have to decide whether a global or more localised fraud protection scheme is best, depending on your needs. This means that you’ll need a payment platform which can recognise where the customer is based, apply the appropriate settings and authentication appropriately. It’s also important to generate business analytics for payment optimisation so that you can continue to develop your cross border payment method in the future.

For example, let’s imagine someone based in France wants to book a night at your seaside hotel. When they check out, they’ll be presented with the option to pay in pounds or euros and how they want to pay. The amount that they pay will be converted into pounds, minus any fees, and transferred to your account after passing any fraud protection measures. Your customer will see a euro amount in their statement but you’ll receive the equivalent amount in pounds.

Types of cross border payments

Cross border payments can refer to a number of different things including:

• bank transfers where money is sent between banks in two currencies using the SWIFT network
• card payments where a payment is made via a debit or credit card with the card network handling all transaction fees and currency conversions
• digital wallets used to send money from your mobile phone or app, typically done using real-time exchange rates and incur lower fees
• cryptocurrency payments where money is exchanged using a cryptocurrency such as Bitcoin, cutting out intermediaries but increasing risk
• pre-paid currency cards which allow you to top up a card in your own currency, convert it and spend it in another currency

Cross border payments process flow

As we’ve discussed, there’s a lot that happens behind the scenes with cross border payments. So, let’s break down what’s actually happening in a cross border payment process flow. For this example, we’re using a UK business who has customers abroad.

The customer initiates the payment

Your customer will instruct either their bank or payment service provider to pay the invoice to you. They’ll do this in their own currency. If they do this by bank transfer, they’ll need to enter:

• the amount to be paid
• the currency it should be received in - pounds sterling in this case
• your bank details and name
• a reference for compliance purposes

Foreign currency is converted into pounds

Your customer’s bank or a third party provider will then convert the foreign currency into British pounds. This step can prove tricky as exchange rates fluctuate and additional fees may be added.

Payment routing

The money is sent from the customer’s bank account to yours. This could happen directly or involve intermediary banks. This step can be a little slower or result in extra charges.

Compliance and anti-money laundering checks

Each bank involved will check the transaction, ensuring there is no evidence of sanctions, fraud, and money laundering.

You receive the money

The money arrives in your account in GBP and is ready to be used.

Cross border payments providers

There are an increasing number of cross border payment providers in the UK. Here’s an overview of some of the most common providers for businesses in the UK and the pros and cons.

GoCardless

• Great for recurring payments
• Transparent pricing
• Not ideal for one-off payments
• Limited cross border capabilities, mainly focused in the UK, US and EU.

PayPal

• Familiar and trusted by customers
• Multi-currency support
• Buyer and seller protection
• High fees
• Not designed for large transactions

Stripe

• Supports 135+ currencies²
• Easy to integrate into an online store
• Transparent pricing
• Mixed reviews on Stripe’s customer support
• Conversion and cross border fees can become expensive

Wise Business

• Mid-market exchange rate with no markup
• Ability to hold 40+ currencies on your account
• Fast transfers³
• Transparent pricing

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Traditional banks

• Established and trusted
• Able to carry out a large volume of compliance checks
• Long processing time
• High fees and poor exchange rate

Revolut

• Easy to use app
• Good exchange rate during office hours
• Pricing structure can be confusing with additional fees applied if a transaction happens outside of office hours
• Limited fee-free transactions, depending on your plan

Cross border payments fees

There can be a number of cross border payment fees applied depending on the provider you use. Here’s a summary of some of the most common charges.

Fee name	What it is
Transaction fee	A fee applied per transaction which can be a flat rate or percentage based.
Currency exchange fee	Markup added to the exchange rate. It’s not always easy to spot but very common.
Receiving bank fee	Some accounts may charge you to receive a cross border payment. If you’re a business owner who will regularly receive international payments, make sure you have an account without receiving fees.
Intermediary fees	You may have to pay additional charges if the payment passes through multiple banks.
Withdrawal fee	Some providers may charge you a fee when you withdraw the money from that account.

Wise Business cross border payments made easy

If you need to pay or get paid in foreign currencies Wise Business can be the ideal provider for your finance stack.

With a Wise Business account, you can hold and exchange 40+ currencies all in one place. Send payments to 140+ countries and get local account details to get paid in 8+ currencies like a local.

Whenever you need to send, spend or exchange foreign currencies, you’ll benefit from the mid-market exchange rate, with low, transparent fees.

When you open a Wise Business account, you’ll benefit from all of these useful features:

• No monthly fees or minimum balance requirements
• Debit and expense cards for you and your team, which you can use in 150+ countries
• Multi-user access for team members, with ways to control and manage permissions
• Pay up to 1,000 people at once with the Wise Batch Payments feature
• Integrate with your favourite cloud accounting solutions, and use the Wise API for automation and streamlining workflow
• Use the Wise Interest feature to make your money work harder when you’re not using it.

It’s quick and easy to open a Wise Business account, with a fully digital application, verification and on-boarding process. Check out the requirements here.

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FAQs - cross border payment process

What are the main challenges businesses face with cross border payments?

Two of the biggest challenges businesses face when setting up a cross border payment process are cost and speed. As banks are located in different countries and use different currencies, transaction and exchange rate fees can quickly add up. Regulatory checks, time differences, and the number of actors involved can also result in a bigger gap between the money being sent and it being received. Wise Businessovercomes these challenges by offering speedy transactions with over half of all transactions available in 20 seconds and 95% taking under 24 hours³. Wise values transparent pricing, ensuring there are no hidden fees and that you always get the mid-market exchange rate.

How do currency exchange rates impact cross border transactions?

Currency exchange rates are constantly fluctuating as they respond to changes in the market. That means it can be hard to predict how much you’ll receive or pay. In addition, some cross border payment providers add a mark up on top of the exchange rate or a transaction fee, costing you more. For this reason, it’s best to keep an eye on exchange rates, wait until they’re in your favour, and perform bigger transactions less frequently.

How can businesses minimise risks associated with international payments?

There are a number of steps businesses can take to minimise the risks that can come with international payments. First of all, ensure you understand the pricing structure and that it’s transparent so that you can include these in your own pricing decisions. Secondly, make sure that you’re using a reputable and regulated payment provider. As a business based in the UK, it would be wise to use a Financial Conduct Authority authorised provider as this offers additional protection.

Can businesses track the status of their international payments?

It is entirely possible for businesses to track the status of their international payments, adding transparency and allowing businesses to plan accordingly. However, it ultimately depends on the service provider. More traditional banks have a tendency to be vague when it comes to the details. Wise allows businesses to track international payments in real-time and includes estimates on when the money will be available.

As the world gets smaller, UK businesses have the opportunity to widen their reach by allowing international customers to shop with them. However, the cross border payments process flow can be complicated and add extra time and cost. To set your business up for success, make sure you think about how to minimise cross border payment processing fees, how you’ll take international payments, currency exchange rates, and user experience for your customers.

If you’re ready to go international and accept cross border payments, find out how Wise can help you.

Sources used in this article:

1. Bank of England website Cross border payments page

2. Stripe Stripe global payments page

3. The speed of transaction claim depends on funds availability, approval by Wise's proprietary verification system and systems availability of our partners' banking system, and may not be available for all transactions

Sources last checked on 23-July 2025.

Disclaimer: The UK Wise Business pricing structure is changing with effect from 26/11/2025 date. Receiving money, direct debits and getting paid features are not available with the Essential Plan which you can open for free. Pay a one-time set up fee of £50 to unlock Advanced features including account details to receive payments in 22+ currencies or 8+ currencies for non-swift payments. You’ll also get access to our invoice generating tool, payment links, QuickPay QR codes and the ability to set up direct debits all within one account. Please check our website for the latest pricing information.