The ultimate guide to paying overseas suppliers

Key takeaways:

• Paying overseas suppliers is a common cost for businesses in 2025, and without the right payment method, can become one of the most expensive

• Bank transfers, credit cards, PayPal, and international money transfer platforms are common ways of paying overseas suppliers

• Modern solutions like Airwallex offer a more efficient, secure, and cost-effective way to pay international suppliers, with benefits such as faster payments, competitive exchange rates, and lower fees.

For Australian businesses with global ambitions, expanding your supply chain overseas is a powerful step towards innovation and growth. It opens up opportunities to access new markets, unique materials, and specialised expertise. Australia's vibrant role in the global economy is undeniable, with goods exports reaching $44,318 million in June 2025 alone¹. 

A seamless and efficient payment process is key to building strong, reliable relationships with your overseas suppliers. This guide will walk you through your options for managing payments with your international partners to put you in the best position.

What to keep in mind when paying overseas suppliers

When paying suppliers abroad, several factors can impact the cost and speed of your payment. Being aware of these can help you avoid unnecessary delays and fees.

• Foreign exchange (FX) costs: Currency exchange rates can fluctuate, affecting the final amount of your payment. It's important to be aware of the rates you’re paying and how the FX fees are structured for your chosen transfer services. With Airwallex, you can trade over 60 currencies at interbank rates and leverage local payment rails for over 120 countries, saving you over 80% on FX fees.

• Speed of payment: The time it takes for a payment to reach your supplier can vary significantly, from a few minutes to several business days. 

• Regulations: Understand the regulations and legal requirements for international payments to and from Australia to avoid any complications.

How to pay overseas suppliers from Australia

There are a few methods to pay overseas suppliers from Australia, including bank transfers, PayPal, credit card, and peer-to-peer transfer platforms.

Bank transfer

One simple way to pay overseas suppliers is via bank transfer. All you need to know is their bank details, the transaction itself is run through the Swift network.

However, international bank transfers require a great deal of your time – and an even greater deal of trust. There is very little protection for merchants or suppliers, and no recourse from your bank in the chance your transaction goes wrong. On top of limited security, international bank transfers are typically slow, taking up to five business days or longer to be completed. 

You also face high fees on your transaction, ranging from $6 up to $30 or more. That’s per transaction. In some cases, you’re even charged fees to amend, cancel, or investigate any issues with your transfer. This is on top of the FX rate banks give, which can be 4-5% less the interbank FX rate (the rate you typically find on Google). So if you’re after a cheap, secure way to send money internationally, a bank transfer through one of the big banks may not be the best way to pay overseas suppliers.

PayPal or credit card

Using your credit card or PayPal to pay overseas suppliers is a reasonably simple, straightforward method that works adequately for smaller payments. The benefits of PayPal include a good dispute resolution process, secure technology, and protection against fraud. However, PayPal charges both a percentage fee and a flat dollar fee per payment, which scales up based on the amount of money you’re sending.

Also, when paying via PayPal you run the risk of account holds, declined payments (based on their perceived level of risk), laborious payment times, and the risk that your transaction may even be cancelled.

While your credit card can be a suitable method for instant payment, you will be charged a high foreign transaction fee (typically 3%) on each payment.

International money transfer platforms

Platforms that specialise in foreign currency transfers can provide a fast and cost-effective way to pay overseas suppliers. These platforms offer competitive rates and low fees, and transparent pricing allows you to optimise your payment timing. 

Airwallex

Some fintech platforms that offer FX, such as Airwallex, offer other features beyond FX and allow you to manage your business finances, too.

Some of the advantages of using Airwallex are:

• Our lightning-fast payment system means you can pay international suppliers practically instantaneously. No waiting around for money to clear, no delays. 

• We offer you access to the interbank FX rate with a very small and transparent margin on top. This means we are up to 80% cheaper than the big banks. Best of all, the margin is the same regardless of the amount you are paying – so no need to call up to negotiate the best rates.

• We also offer card payment options with zero international transaction fees. If you need to make a card payment, instantly spin up a Corporate Card to pay a supplier online. 

With access to over 200 countries and letting you open bank accounts in 60+ currencies, Airwallex is the safest and most cost-effective way to pay your overseas suppliers, too. We are PCI compliant so your data and funds remain protected at every step of your transfer and our security systems maintain the highest international standards.

How to choose the best method to pay overseas vendors

Deciding the best method to pay your overseas vendors can impact your day-to-day operations, your business relationships, and even your ability to grow. You want a payment process that is secure, fast and robust. 

Here are some key considerations when choosing how to pay an overseas vendor:

• The cost of the payment method, including transaction fees, FX rates, and additional charges such as monthly account fees.

• How secure it is, including fraud prevention measures.

• The speed at which your payment will arrive to your supplier. Some transfers, including those offered by fintechs including Airwallex can be instant, while others take up to five days.

• Whether your supplier has a preference for the payment method used.

You can also consider the following scenarios when deciding the best payment method:

If a vendor accepts local currency in their country, pay via local payment rails from a multi-currency account. This means you can benefit from like-for-like settlement to eliminate FX fees and intermediary charges. 

If your vendor requires a specific currency, such as USD or EUR, pay from held balances in that currency from a multi-currency account. This will avoid currency fluctuations during transfer. 

If you need to pay multiple invoices regularly, use batch transfers and approval workflows. Fintech platforms offer batch payments where you can upload a spreadsheet to pay multiple invoices simultaneously. 

If speed is critical to paying your overseas suppliers, check if you can open a local bank account in that country. Many platforms (including Airwallex) allow you to create local bank accounts in multiple currencies, letting you bank like a local and pay local vendors quickly.

The best way to pay overseas suppliers is with Airwallex

For complete certainty, absolute speed, and the best exchange rates around, Airwallex is the safest way to pay your overseas suppliers.

It’s easy to set up, easy to get started, and you gain direct access to our expert support team to help you get the most out of your new payment system.

Get in touch with us to experience first-hand how Airwallex can streamline your international payments.

Frequently asked questions

How long does an international payment to an overseas supplier take?

The time frame for international payments can vary. Wire transfers often take 1-5 business days, while some platforms such as Airwallex can send payments within a few hours or the same day.

 What is a multi-currency account and should my business get one? 

A multi-currency account allows you to hold multiple currencies in the one account. For businesses that deal with frequent international transactions, this can be a great way to reduce conversion fees, manage cash flow, and hedge against short-term currency fluctuations.

What information do I need to pay an overseas supplier? 

You will typically need the supplier's full name, bank name, bank account number, and SWIFT/BIC code. Some countries may require additional information, such as an International Bank Account Number (IBAN).

Sources:

• https://www.abs.gov.au/statistics/economy/international-trade/international-trade-goods/latest-release

Our products and services in Australia are provided by Airwallex Pty Ltd ABN 37 609 653 312 who holds AFSL 487221. Any information provided is for general information purposes only and does not take into account your objectives, financial situation or needs. You should consider the appropriateness of the information in light of your own objectives, financial situation or needs. Please read and consider the Product Disclosure Statement available on our website before using our service.