B2B cross-border payments: How they work, what they cost, and how to get them right

Key takeaways

• B2B cross-border payments involve moving funds between businesses in different countries, and they come with challenges like high FX fees, slow settlement, regulatory complexity, and reconciliation headaches.

• Choosing the right payment infrastructure — multi-currency accounts, local payment rails, transparent FX — can cut costs significantly and speed up cash flow.

• Airwallex processes US$150 billion+ in annual payments volume, offers interbank FX rates, and lets you collect, hold, and pay out in 130+ currencies from one platform.

B2B cross-border payments are payments between businesses in different countries. Money moves across borders, currencies, and payment networks to reach the recipient. As global trade keeps growing and supply chains stretch further than ever, these payments have become essential for businesses of all sizes.

Still, moving money overseas isn’t as simple as a local transfer. You’re dealing with more than one currency, different banking systems, rules in each country, and fees that can quietly cut into your margins.

This guide explains how B2B cross-border payments work, the challenges you’ll face, and practical ways to manage them — whether you’re making your first international sale or scaling across dozens of markets.

What are B2B cross-border payments?

A cross-border payment is a payment between two parties in different countries. Money moves from one country to another. In B2B sales, a simple example is a US business buying software from a UK company.

If you want to get paid by card, digital wallet, or on a recurring billing cycle for that sale, you’ll need a payment service provider to handle those transactions.

How are cross-border payments different from domestic transactions?

Getting paid by customers in the same country is usually straightforward. Both banks use the same core systems, rules, and networks. For example, Faster Payments in the UK clears transfers through one domestic system.

By contrast, an international payment has to connect two different sets of systems and rules. Your payment may also need to pass through several intermediary banks before it reaches the recipient.

It’s like speaking with someone who shares your first language versus someone where you both rely on a second language. You can still talk, but it usually takes more time, and it’s more complex.

The role of correspondent banking and intermediaries

When your bank doesn’t have a direct relationship with the recipient’s bank, the payment often goes through correspondent banks. These are intermediaries that hold accounts with each other (called nostro and vostro accounts). That’s what makes the transfer possible.

Think of it like a relay race. Your payment gets passed from bank to bank until it reaches the end. Each handover can add time and cost. One international wire might go through two or three intermediary banks, and each one can take fees on the way.

That’s why a payment you send for £10,000 might arrive as £9,950. It’s also why you won’t always know the exact amount until it lands. Once you understand this chain, the next challenges make a lot more sense.

Why businesses need cross-border payment solutions

First, if you want to grow globally, you’ll need a cross-border payment solution. Without one, customers in other countries often can’t pay you — unless they already have a bank account in your country.

Rebecca Mulcahy, our SME and Growth Sales Manager, explains it well:

"A cross-border payments processor lets you go international from anywhere in the world. It gives you access to customers paying in USD, EUR, KRW, and other global currencies, so you can expand far quicker but, crucially, more flexibly."

And, it’s not only about sales. Many businesses sit inside international supply chains. So, if you want to pay and be paid, you’ll need a cross-border payment solution.

Cost control matters too. Receiving money by international wire transfer (like SWIFT) can be slow and expensive. A solution built for international sales is often cheaper and faster, because it’s designed to take the most efficient route through payment networks.

So, you’ve got global growth, supply chain payments, and better working capital. That’s a strong case for finding the right cross-border payments processor.

Common use cases for B2B cross-border payments

Trade is more global than ever. That’s even more true once you include services as well as goods. Some of the most common reasons for cross-border payments we see include:

• Receiving payments from customers and clients: Whether you sell software, professional services, or physical goods, overseas customers need a way to pay you in their preferred currency.

• Payments to suppliers and infrastructure providers: Your supply chain may span many countries, from raw materials to cloud hosting services.

• Paying remote workers and contractors: As distributed teams become normal, payroll often crosses borders.

• Refunds to vendors: Returns and adjustments still need to move back across the same international routes.

Across payroll, supply chain, and sales, a B2B company might need to pay into a dozen countries. That’s why it’s crucial to choose a reliable cross-border payment solution.

Key challenges of cross-border payments

As we’ve already said, cross-border payments are complex. A payments provider can handle a lot of the heavy lifting. Even so, you’ll still face challenges and risks on your side.

High transaction fees and exchange rate markups

If you use a cross-border payment provider that isn’t built for multi-currency payments, exchange and conversion costs can quickly eat into your margins. Traditional banks may charge 1.5–3% above the interbank rate in hidden FX markups. On top of that, they often add per-transaction fees.

For example, Barclays charges a £15 fee for international SWIFT payments made via Online Banking. That’s before you add exchange, overseas bank, and processing fees. If you pay internationally often, these costs can add up fast.

Payment delays and settlement times

Payment processing is safe and secure. Still, something can go wrong, and that risk is higher when money crosses borders.

SWIFT payments can take two to five business days to process, clear, and settle. A big reason is the chain of correspondent banks we covered earlier. And because cash flow pressure happens to every business, waiting days for a foreign currency payment to clear can hurt when you need funds right away. In contrast, modern options that use local payment rails can often settle the same day, or even instantly.

FX risk, automatic conversion, and hedging

If your bank or payment provider automatically converts foreign currency payments, your margin can take a hit. Ashley Thorne, Account Executive at Airwallex, explains the risk:

Automatic conversion isn’t the only issue. Exchange rates also move, and that can directly reduce profit. If there’s a delay, a payment agreed at one rate may settle at a worse one.

A strong way to manage this is to use multi-currency accounts as a natural hedge. You hold the currencies you need, which cuts out needless conversions. You can also use Forward Contracts to lock in future rates for cost certainty. And, you can set rate alerts, so you can time conversions more carefully.

Regulatory and compliance complexity

Cross-border payments must meet different rules in each country. Anti-money laundering (AML) checks, Know Your Customer (KYC) verification, and sanctions screening all add extra steps.

Also, what’s compliant in one country may not be enough in another. Some regions may need more documents. And if you fail a compliance check, a payment can be delayed or blocked.

That’s why it helps to choose a provider with built-in compliance support. Airwallex, for example, holds 60+ licences globally. That means the regulatory heavy lifting is handled for you in the markets where you operate.

Reconciliation across currencies and systems

Conversion costs, fees, and intermediary deductions affect your margins, so you can’t ignore them.

The amount you invoice isn’t always the amount you receive. When payments go through correspondent banks, each one can take a fee, which makes the final amount hard to predict. So, you’ll need to reflect this in accounts receivable and cash flow forecasts. On top of that, reconciling transactions across multiple currencies and systems can quickly become a headache without the right tools.

Costs and fees associated with cross-border payments

Moving money nearly always costs money. Still, there are specific cross-border fees you should understand — and reduce where you can.

• Exchange rate margins: When a provider converts your currency, it adds its own margin. That’s part of how it makes money. Because the market is competitive, it’s worth comparing providers. A lower exchange margin can save you a lot over time.

• Transaction fees: On top of conversion costs, your bank or payment provider will usually charge a fee per transfer. These are often higher for international payments. Even so, pricing varies, so it pays to shop around.

The gap between providers can be large:

There are also hidden and less obvious costs to think about:

• Market exposure: A business can get unlucky with timing. If you exchange on a day with a poor rate, you could lose whole percentage points of the payment value. Sometimes, even a day or two makes a real difference.

• Cash flow and trapped liquidity: International payments often take a few days to clear and settle. If you need fast access to cash and quick turnover, relying on cross-border income can catch you out.

How to accept and send B2B cross-border payments

International payments can be complex. However, you’ve still got plenty of ways to send and receive them.

Payment methods for international B2B transactions

• International wire transfers: Using networks like SWIFT, businesses can send wire transfers across borders. They’re widely accepted, but they can be slow and expensive. They often take several working days.

• Local payment rails: Networks like SEPA payments in Europe, Faster Payments in the UK, and ACH in the US can be faster and cheaper than SWIFT when both sides can use them. These often settle the same day, or faster.

• Debit, prepaid, and credit cards: With a payment gateway like Airwallex, you can take card payments straight on your website.

• Digital wallets: The FCA believes more than half of UK adults use some form of digital wallet. Apple Pay, Google Pay, PayPal, and similar options are all popular.

• Local currency accounts: If you can open an account in your customer’s local currency, you can receive a bank transfer through that country’s payment network, like Bacs in the UK.

With Airwallex, you can open a local account in 60+ markets worldwide.

The role of FX in cross-border B2B payments

If you’re sending or receiving payments overseas, you and the other party will often use different currencies. For money to land in the other person’s account (and the other way around), a currency conversion is often needed. And that can be costly.

Most banks use a conversion rate that’s well above the interbank rate (the rate banks use with each other). They may also charge an extra exchange fee.

That’s why a payment provider that offers a dedicated cross-border service can matter so much. Better still is a provider that supports multi-currency payments. Either way, you could save meaningful percentage points on fees per transaction.

Multi-currency accounts: Hold, pay, and avoid double conversion

We’ve mentioned this a few times. It’s worth its own section.

As a starting point, it helps to accept payments in another currency and convert them into your own. But the bigger goal is to sell in different currencies, hold those funds in local currency accounts, and avoid FX where you can. That way, you can avoid the double-conversion problem Ashley described.

A multi-currency payment gateway, connected to an international business account, is an ideal set-up for businesses that trade globally.

Best practices for UK businesses handling cross-border payments

Cross-border payments can feel daunting at first. However, once you start, they’re usually easier to manage than they look. And if you choose a provider with a strong onboarding process, it gets simpler still.

Choose the right payment provider

Rebecca raises an important point. She says many providers "don’t offer close support unless you’re a huge merchant." Mid-market merchants often trade internationally in a steady way. Yet they may not have the revenue to get strong account management. That can leave them stuck between small retailers and enterprise customers.

The best provider will vary by business. Still, here’s what to look for:

• Transparent pricing: Clear FX rates close to interbank, with fees itemised rather than bundled

• Local rail coverage: Access to SEPA, Faster Payments, ACH, and other local networks for faster, cheaper transfers

• Multi-currency account availability: The ability to hold, receive, and pay out in multiple currencies without forced conversion

• Compliance support: Built-in AML, KYC, and sanctions screening across your target markets

• API and integration options: Connections to your accounting software, ERP, and eCommerce platforms

• Account management quality: Dedicated support that doesn’t disappear once you’ve signed up

Automate payments and reconciliation

If your business runs on subscriptions, automating recurring billing can save hours of time. It can also save money. It’s often straightforward if you handle cross-border payments through a payment gateway that can handle subscription billing.

Next, you can go further by using a payments platform that can automate your bills and accounts payable.

In theory, a B2B business could remove almost all manual reconciliation with the right mix of services. Thanks to integrations, you can automate records by using Airwallex for payments and multi-currency accounts, Xero for accounting, and a platform like Shopify for your storefront.

Step-by-step: Sending a cross-border payment

To send an international payment successfully, follow these steps:

• Choose your provider: Pick a payment provider that offers multi-currency accounts and access to local payment rails. This choice shapes your speed and your costs.

• Collect recipient details: Get the beneficiary’s details (IBAN, SWIFT/BIC, account number) and any compliance documents. Errors here are a top cause of delays.

• Pick your payment route: Where possible, use local rails (like SEPA or Faster Payments) for speed and lower cost. Use SWIFT only when you need to. Also decide if you’ll pay in the recipient’s currency or convert first.

• Review costs and approve: Check fees and FX rates before you confirm. Look for real-time rates close to interbank. Then follow your approval steps and authorise the payment.

• Track and reconcile: Track the payment until it settles. Once it clears, sync the data to your accounting platform — automatically, if you can.

Why UK businesses choose Airwallex

We built Airwallex to solve a problem our founders faced in their earlier small business: cross-border payments that were slow, costly, and hard to manage. Airwallex can make B2B payments feel like local ones, even when your suppliers and vendors are overseas.

Here’s what that looks like in real terms:

• US$150 billion+ in annual payments volume processed

• 150,000+ businesses using the platform globally

• Accept payments in 130+ currencies

• Make transfers to 150+ countries

• ~95% of transfers arrive same day

• 60+ licences held globally, so compliance is built in

• Interbank FX rates with transparent, low fees

We also put a lot of care into account management. As Rebecca says: "We really care about our small and mid-market merchants, we care about payment optimisation. It’s more of a consultative approach on how we can improve their checkout and payments acceptance."

Above all, if you’re looking into cross-border payments, you’re likely doing many things right. Your business is growing. It looks like you’ve found product-market fit. And there’s real potential ahead. With the right partner for international growth, you can turn that potential into results.

Frequently asked questions (FAQ)

How can a business send money in USD and have it received as EUR?

You can use an international payment platform that converts USD to EUR when you make the transfer, so the recipient gets euros.

Start by registering with a provider. Then fund your account in USD, enter the recipient’s EUR account details, and choose EUR as the payout currency. The platform converts at the agreed rate and sends the EUR — often within one to two business days. Before you confirm, compare rates. Some providers build fees into the exchange margin, while others list them separately.

What are the main challenges of B2B cross-border payments?

The main challenges include high FX fees and hidden markups, slow settlement times (often two to five business days for SWIFT), regulatory complexity across countries, and difficult reconciliation across multiple currencies. Any of these can hurt your margins and cash flow if you don’t manage them well.

The challenges section above covers each one in detail, along with practical ways to deal with them.

How can businesses reduce the cost of cross-border payments?

The best way to cut costs is to use multi-currency accounts.

They let you hold and pay in local currencies, so you avoid needless conversion. Next, choose a provider with FX rates close to interbank. Also, use local payment rails (like SEPA or Faster Payments) instead of SWIFT when you can. Finally, when you’re paying many recipients, batch payments to reduce per-transfer fees.

What role do intermediary banks play in cross-border payments?

Intermediary banks (also called correspondent banks) act as middlemen. They pass your payment from your bank to the recipient’s bank when those banks don’t have a direct relationship. Your payment may go through one, two, or even three intermediaries before it arrives. Each one can add time and take fees. That’s why the amount you send doesn’t always match what’s received.

Modern payment platforms can often avoid this chain by using local payment rails or direct connections.