International payment methods 2026: Costs and speed explained

Key takeaways

• International payments move money across borders through several different methods, and each one comes with different costs, speeds, and risk profiles.

• Hidden FX markups are often the biggest cost in cross-border payments, not the transfer fee itself.

• Airwallex lets Hong Kong businesses pay suppliers via local rails across 120+ countries and regions, with approximately 93% of transfers arriving the same day and FX rates at or near the interbank rate, cutting the cost of international payments significantly compared to traditional providers.

If your business pays suppliers overseas, collects from international customers, or runs operations across multiple currencies, you're dealing with international payments every day. This article will provide an overview of mainstream international payment methods for businesses, along with their advantages and disadvantages. We'll also show you how Airwallex compares with traditional options.

What are international payments?

An international payment is any transfer of money between countries or currencies.For Hong Kong businesses, international payments usually fall into three categories: 

1) Paying overseas suppliers for goods or services, 

2) Collecting from customers in other markets, and 

3) Managing multi-currency operations such as payroll for remote teams. 

The method you choose affects speed, cost, and control over the exchange rate.

Types of international payment methods for businesses

Businesses in Hong Kong have a few different ways to move money across borders. Each method has its own strengths, and the right one depends on what you're paying for, how fast it needs to arrive, and what you're willing to pay in fees.

1. Bank wire transfers

Bank wire transfers involve the use of the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system to facilitate international transfers. Basically, all banks that offer wire transfer services ‌have their own unique SWIFT codes. 

The trade-off is speed and cost: transfers can take several business days and incur transfer fees, less favourable exchange rates, and intermediary bank deductions when correspondent banks are involved.

2. Electronic payments

Electronic payments refer to making transfers without the need for cash, cheques, or credit cards. In Hong Kong, platforms like AlipayHK and WeChat Pay HK are popular for both domestic and cross-border transactions, and they offer fast transfers with round-the-clock availability. 

The trade-off is that they’re better suited to smaller transactions, with potential limits, per-transaction fees, and occasional monthly or hidden charges for business use.

3. Credit cards

Businesses often use credit cards for international purchases, like paying overseas suppliers, subscribing to SaaS tools, or covering travel expenses. Credit cards are convenient, widely accepted, and come with built-in fraud protection.

The trade-off is cost: card networks set their own FX rates and most cards add a foreign transaction fee, making frequent cross-border purchases more expensive than they appear at checkout.

4. Money changers

Money changers are another common method for overseas payments. It provides cash exchange services between different currencies based on the prevailing exchange rates. 

The trade-off is variability and oversight: fees and rates differ widely by operator and processing can take time

5. Local payment rails

Local payment rails are domestic or regional networks (e.g., FPS in Hong Kong, SEPA in Europe, ACH in the US) that move funds without routing through SWIFT. They typically offer faster delivery and lower costs for supported corridors.

The trade-off is coverage and conditions: availability depends on the route, and where local rails aren’t supported you may need SWIFT.

What international payments actually cost

International payments cost more than the headline transfer fee. Here’s a simple breakdown of what really drives the total and what your recipient actually receives.

• Transfer fees: A fixed or percentage-based charge set by your bank or provider.

• FX rate vs the interbank rate: The rate you’re quoted is rarely the interbank rate (the wholesale rate banks use). The gap is the FX markup, which is the biggest cost and sometimes larger than the transfer fee.

• Intermediary bank fees: For SWIFT transfers, correspondent banks along the route may deduct fees before funds reach the recipient.

• Receiving fees: The recipient’s bank may charge a fee to accept an international transfer.

If you understand where these costs come from, you’re in a stronger position to avoid overpaying.

How to make an international payment

Making an international payment is simple once you know what's needed. Here's a practical checklist:

1. Choose your payment method: Based on the amount, urgency, and destination, decide whether a wire transfer, local rails, or another method makes the most sense.

2. Gather the recipient's details: You'll need their full name, bank name and address, account number or International Bank Account Number (IBAN), and SWIFT/BIC code (for international transfers).

3. Confirm the exchange rate and total cost: Check the rate you're being offered against the interbank rate, and confirm all fees, including transfer fees, any markup, and whether intermediary fees will be deducted.

4. Initiate the transfer and track it: Submit the payment and keep the reference number. Most providers offer tracking so you can see when the funds arrive.

Providers like Airwallex handle much of this automatically, including routing selection and rate confirmation, which makes the process much easier.

What details you'll need

Here's a quick reference for the recipient details that are usually required:

• Recipient's full name: Must match the name on their bank account exactly.

• Bank name and address: The recipient's bank and its location.

• Account number or IBAN: The unique identifier for the recipient's account.

• SWIFT/BIC code: Required for international wire transfers to identify the recipient's bank.

• Payment amount and currency: The amount you're sending and the currency you want the recipient to receive.

Challenges brought by traditional cross-border payment methods 

Traditional cross-border payment methods bring several challenges to business operations, including:

1. Unnecessary costs: Cross-border payments involve various service fees, along with the additional cost for currency conversion, significantly reducing profitability. 

2. Extra administrative work: Transaction limits restrict the amount that can be transferred. The need for multiple transfers results in extra administrative work.

3. Lengthy transfers: The process of transfer can take up to 5 days depending on the method and destination. The lack of transparency also makes it difficult to track the status and details of the transaction. In case of delays, fines may be imposed by suppliers or even lead to delayed deliveries, impacting the production and the reputation of your business.

In spite of the advantages of traditional international payment methods for businesses, none of them is perfect. Therefore, a cross-border payment solution that combines efficiency, security, convenience, and low costs would surely provide significant support to the operations of cross-border businesses.

Consideration factors for choosing an international payment method

1. Business needs

You should choose the appropriate international payment method for your business based on factors such as payment deadlines, payment amount, and recipient country. For example, bank wire transfers may be more secure and reliable for large international transfers. For small payments, electronic payments, or money changers may be more convenient.

2. Cost

Businesses should compare the monthly charges, exchange rates, and transaction fees of different international payment methods. Cost transparency is also important as hidden charges and additional service fees can eat into your profit margins. Conducting a comparison in advance would help you to choose the most cost-effective method that fits your budget.

3. Speed

Transaction speed is another critical factor when choosing an international payment method, especially for businesses that are operating under ‌tight deadlines. Delays in payment processing can disrupt supply chain timelines and strain your relationship with suppliers.

4. Security and legal compliance

Make sure the chosen international payment method has robust security measures, such as encryption, fraud prevention, and two-factor authentication to protect your funds and privacy. Selecting a payment method that complies with the local laws and regulations of your country and the recipient’s country can also help to avoid procedural complications and speed up operations.

Airwallex: the new international payments platform for businesses

Airwallex offers one-stop Business Accounts specifically designed for global transactions. Simply upload basic business documents to complete the account opening process within minutes, with no account opening fees or hidden charges. 

The multi-currency Global Account allows you to avoid unnecessary currency exchanges, and businesses can take advantage of market-leading exchange rates to reduce costs. In addition, cross-border transfers can be credited as fast as one day, giving you a competitive edge in your business. All transaction records can be automatically synced to Xero, so you can conveniently manage and allocate funds in real-time, and have a comprehensive view of your company's financial status. As a licensed payments platform, Airwallex also prioritises system encryption and security to ensure the security of the transaction and funds.

Open an Airwallex Business Account for free.

FAQs

What's the cheapest way to make an international payment?

Local payment rails are usually the cheapest option for supported corridors because they avoid the intermediary bank fees that come with SWIFT transfers. The total cost also depends on the FX markup, so compare the rate you're offered with the interbank rate, not just the transfer fee.

How long does an international payment take?

It depends on the method and destination. SWIFT wire transfers usually take several business days. Local rail transfers can arrive the same day or even instantly. Airwallex delivers approximately 93% of transfers same day and approximately 45% instantly.

What details do I need to make an international payment?

You'll usually need the recipient's full name, their bank name and address, account number or IBAN, and SWIFT/BIC code (for international transfers). Local rail transfers may require different details depending on the region.

What's the interbank rate?

The interbank rate is the exchange rate banks use when trading currencies with each other, essentially the wholesale rate. Most providers add a markup before they quote you a rate, so the difference between the interbank rate and the rate you're offered is the FX markup.