International Payment Methods: Simple Guide (2025)

International payments have become a vital part of global trade and commerce. Businesses are operating on a global scale and individuals are traveling across borders. They need efficient and secure payment methods to make transactions in different currencies. This need has become more pressing than ever before.

In this article, we will explore some of the most used international payment methods. We’ll also give you the most important information about these methods, as well as some information about how the Wise Business account could save you money while conducting business internationally.

Learn more about Wise Business>>

International Payment Gateways vs. Payment Processors

When it comes to making international payments, there are two main services. These are payment gateways and payment processors. You may have heard about both as the same thing. While they may seem similar at first glance, there are some key differences between the two.

A payment gateway is a service that acts as an intermediary. It goes between the merchant (seller) and the customer's bank. It captures, encrypts, and sends credit card information to the acquiring bank. The bank then authorizes it. Some popular international payment gateways include PayPal, Stripe, and Square.

A payment processor is a service that handles the actual processing of transactions. It verifies funds and facilitates the transfer of money from the buyer's account to the seller's account. Popular examples of payment processors include Visa, Mastercard, American Express, and Discover.

Need a simpler explanation? International payment gateways and processors help conduct online payments in different currencies. Gateways focus on collecting payment information. Processors handle the transaction process.

Important Things to Consider When Choosing International Payment Methods

When choosing an international payment method, there are several factors to consider.

The first and most important factor is the security of the transaction. This includes protecting personal information and financial details. You also should ensure that the funds reach their intended recipient without any delays or errors.

Another crucial factor to consider is the speed of the transaction. Businesses operate on tight deadlines. Individuals need quick access to funds while traveling. You need to choose a payment method that offers fast processing times.

The cost of transferring money with a currency conversion is also an important consideration. Some payment methods may have higher fees or exchange rates than others. Comparing and choosing the most cost-effective option is essential.

Lastly, understanding the local laws and regulations of both the sender's and receiver's countries is crucial. Some countries may have restrictions or specific requirements for international transactions. This can affect the choice of payment method.

See the Best Banks for Small Businesses >>

Best International Payment Methods

Without further ado, here are our top 6 picks for the best international payments on the market. For each option, we’ll give you a detailed description, including:

• what they are
• how customers use them
• how vendors accept them
• the average cost for vendors and/or customers
• pros and cons

1. International Transfer Providers

International transfer providers are companies that specialize in transferring money between different countries. They offer lower fees and better exchange rates than traditional banks. This makes them an attractive option for international payments.

How Customers Use Them

Customers can use these providers by signing up for an account online. They can also do so through their mobile app. They can then start transfers from their bank accounts to the recipient's bank account in another country.

How Vendors Accept Them

Vendors must also have an account with the transfer provider to receive payments. The funds will be transferred to their local bank account in their currency of choice.

Average Cost

International transfer providers often are a subscription-based service. They also need a transfer fee for each transaction. For example, a transfer of 1,000 USD with a currency exchange to Euros could cost $0-$6.82 in extra charges. But it’s important to note that up to almost 39 EUR is lost in transition. Wise is one of the best options for retaining funds and they charge a one time fee. The payer is the one who pays for this service most often.²

Pros

• Lower fees compared to traditional banks
• Faster transfer times
• Better exchange rates than banks

Cons

• Some providers may have limits on the amount that can be transferred at once
• Not all countries and currencies are supported

Save Time and Money On Overseas Payments With Wise Business

Wise Business can help you save big time on international payments.

Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies.

Signing up to Wise Business allows access to BatchTransfer which you can use to pay up to 1000 invoices in one go. This is perfect for small businesses that are managing a global team, saving a ton of time and hassle when making payments.

Use Wise Business >>

Some key features of Wise Business include:

• Mid-market rate: Get the mid-market exchange rate with no hidden fees on international transfers

• Global Account: Send money to countries and hold balances in multiple currencies, all in one place. You can also get major currency account details for a one-off fee to receive overseas payments like a local

• Access to BatchTransfer: Pay up to 1000 invoices in one click. Save time, money, and stress when you make 1000 payments in one click with with BatchTransfer payments. Access to BatchTransfer is free with a Wise Business account

• Auto-conversions: Don't like the current currency exchange rate? Set your desired rate, and Wise sends the transfer the moment the rate is met

• Free invoicing tool: Generate and send professional invoices

• No minimum balance requirements or monthly fees: US-based businesses can open an account for free. Learn more about fees here

• Convenience
  Once you open your Wise Business account you can send payments to 160 countries. If you need a local account to receive money and allow your customers to pay you in their own currency, get account details (such as routing number, IBAN, sort code and more).

• Online
  With Wise Business there's no need to visit a branch or call anyone up. Everything happens online.

• Your recipient gets notified
  If you enter your contractor’s email, they will get an email once you’ve paid them, which is good for their peace of mind as well as yours.

• Your recipient doesn’t need a Wise account
  When you use a solution like PayPal, your recipient will need to sign up to get hold of their money. Not so with Wise — it goes straight into their bank account.

• Access to BatchTransfer
  Signing up to Wise Business allows access to BatchTransfer which you can use to pay multiple invoices in one go.

• Great exchange rates
  You’ll get the mid-market rate like you see on Google, which should save you and your overseas contractors a lot of money. You aren’t likely to get that from a bank.

• End payments in US dollars or local currency
  In most countries, you can pay your international contractors in either the local currency or in US dollars.

• Secure
  Wise is regulated by the financial ruling bodies in each country it operates.

Learn more about Wise Business>>

3. P2P Payments

P2P (peer-to-peer) payments are transactions between two individuals using electronic payment methods. These types of payments have become increasingly popular due to the rise of mobile banking and digital wallets.

How Customers Use Them

Customers can start P2P payments by linking their bank accounts or debit/credit cards to a mobile app or online platform. Venmo or Zelle are two popular options. They can then send money to another individual's account by entering their email address or phone number.

How Vendors Accept Them

Vendors can receive P2P payments by signing up for a payment service. PayPal or Square Cash are two popular options. They can then request payments from customers who have accounts with the same service.

Average Cost

Vendors: P2P companies often just charge payment processing fees. These are a percentage and flat rate per transaction. The percentage is anywhere from 0-2.7% and the flat rate is 5-10 cents. Some services also have a monthly fee in exchange for lowered payment processing fees. This fee can be over $99.³

Customers: P2P payments do not cost a user anything. But they may take a small percentage when transferring funds from the app to your bank account. Some also offer safety features. These will take a small percentage in exchange for a full refund when needed. But these features are not required to make a payment.

Pros

• Convenient and fast way to transfer money between individuals
• Can be used internationally without incurring high fees
• Many options available. This makes it easy to find a platform that suits individual needs

Cons

• Limited acceptance by merchants compared to other methods
• May not be suitable for large transactions
• Not all countries have access to popular P2P payment platforms

4. SWIFT Payments

SWIFT (Society for Worldwide Interbank Financial Telecommunication) payments are bank-to-bank transfers. They allow individuals or businesses to send money around the world. This method uses a messaging network to send financial information between banks.

How Customers Use Them

Customers can start SWIFT payments by providing their bank with the recipient’s bank account details. The transaction takes 1-5 business days to complete.

How Vendors Accept Them

Vendors must have an account with a bank that is part of the SWIFT network to receive payments. The banks charge a fee for processing the transaction. The funds are then transferred to the vendor's account.

Average Cost

The cost of a SWIFT payment varies depending on the banks involved and the currency being exchanged. On average, customers can expect to pay around $25-$40 per transfer. Vendors may have to pay a percentage-based fee on the total amount received. SWIFT payments can also be shared between customers and vendors. Or either one of them can choose to accept the cost.

Pros

• Secure and reliable method of payment
• Accepted by banks around the world

Cons

• Transaction fees can be high for smaller transactions
• Transactions can take several days to complete

5. Debit Cards

Debit cards are plastic or digital cards linked to a customer's bank account. They can be used for both online and in-person transactions. Unlike credit cards, the funds for debit card sales come from the customer’s bank account.

How Customers Use Them

Customers can use their debit card just like a credit card. They do so by entering their card information during checkout on an e-commerce website or swiping it at a physical store. Some banks also offer virtual debit cards. These can be used for online transactions without having to enter actual card details.

How Vendors Accept Them

Vendors can accept debit cards in the same way they accept credit cards. They must have a merchant account and a card reader to process transactions.

Average Cost

Vendors: Fees for debit card use are per transaction. They are lower than credit card use fees. The Federal Reserve reported that the average fee was $0.34 or 0.74% per transaction in 2022.⁴

Customers: The cost of a debit card depends on your ability to make payments and keep a required balance in your account. If you are on top of things, the costs should reflect the payments you make.

Pros

• Funds are immediately available for vendors. This reduces the risk of chargebacks
• No interest or debt accumulation for customers

Cons

• Limited protection against fraudulent charges compared to credit cards
• May have transaction fees for international sales

6. Credit Cards

Credit cards are often used for international transactions. This is because they offer a convenient way for customers to make sales in different currencies. Customers can also earn reward points or cashback on their sales when using credit cards.

How Customers Use Them

Customers can use credit cards by entering their card details at checkout. They can also swipe the card at a physical point of sale terminal. Many credit card companies now offer chip-enabled cards for added security.

How Vendors Accept Them

Vendors must have a merchant account with the credit card company to accept payments. The company charges a transaction fee for each payment processed. The funds are then transferred to the vendor's bank account.

Average Cost

Vendors: Fees for credit card use are per transaction. They are higher than debit card use fees. The Federal Reserve reported that the average fee was 1.40% per transaction in 2022.⁴

Customers: Like debit cards, the cost of a credit card depends on your organization and ability to make payments. If you pay back your statements on time, you may make a small amount of money by using your credit card.

Pros

• Accepted by most merchants around the world
• Offers rewards and cashback incentives for customers
• Can be used for both online and offline transactions

Cons

• Customers may face foreign transaction fees or currency conversion fees when using their credit cards abroad
• Vendors must pay processing fees for each transaction

---

Sources used :

1. 10 Best Payment Gateways (January 2024) - Forbes Advisor
2. International Money Transfer | Send Money Abroad with Wise (ex-...
3. How to Accept Peer-to-Peer Payments at Your Business - NerdWallet
4. Debit Card Processing Fees: Merchant Guide - Merchant Maverick

Sources last checked on 16-January 2024.