B2B international payments: A guide for businesses

B2B international payments are cross-border transactions between businesses for goods, services, or invoices. They often involve multiple currencies, intermediary banks, compliance checks, and foreign exchange (FX) costs.

While the concept is simple, the execution isn’t. Fees, delays, regulatory screening, and currency fluctuations can increase costs and disrupt vendor relationships if you don’t manage them carefully.

How B2B cross-border payments work

International B2B payments move through multiple institutions before reaching your vendor. Depending on the countries, currencies, and compliance checks involved, settlement typically takes 1–5 business days.

Behind the scenes, your payment passes through several structured steps:

Common B2B international payment methods

You can send B2B international payments through several channels, each with trade-offs in speed, cost, transparency, and control. The right method depends on transaction size, vendor location, urgency, and how much visibility you need into fees and FX.

Wire transfers and SWIFT payments

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the primary messaging network used for international wire transfers. It doesn’t move money itself—it transmits standardized payment instructions between banks.

SWIFT wires are widely accepted and reliable for large invoices and established vendor relationships. However, they typically take 2–5 business days and often involve origination fees, intermediary bank deductions, and FX markups that increase total cost.

ACH and SEPA transfers

ACH in the US and SEPA in Europe are regional bank transfer networks that offer lower-cost alternatives to international wires within specific geographies. If you regularly pay vendors in supported regions, ACH or SEPA transfers can significantly reduce per-payment fees. The trade-off is geographic limitation and slower settlement compared to cards or some digital platforms.

Corporate credit and debit cards

Card payments are best suited for smaller B2B transactions where speed and convenience matter more than minimizing fees. Cards settle quickly and offer built-in fraud protection, but foreign transaction fees (often 1%–3%) and merchant processing costs can make them expensive for large invoices. They’re commonly used for SaaS subscriptions, travel, and lower-value vendor payments.

Digital payment platforms and B2B payment networks

Modern fintech platforms aggregate multiple payment rails and often optimize routing behind the scenes. Many offer faster settlement, improved FX transparency, batch payments, and accounting integrations.

These platforms can reduce manual reconciliation work and provide better visibility into payment status. For finance teams managing high volumes of cross-border transactions, that operational efficiency can matter as much as headline fees.

B2B cross-border payment challenges

B2B international payments introduce operational, financial, and compliance risks that don’t exist in domestic transfers. If you don’t manage them proactively, they can increase costs, delay settlement, and strain vendor relationships.

Transaction delays and processing times

International payments take longer because they pass through multiple institutions, time zones, and compliance checks. A transfer initiated late in the US workday may not begin processing in Asia until the next business day.

These delays complicate cash flow forecasting and vendor coordination. When funds arrive later than expected, it can weaken supplier relationships and reduce your leverage in future negotiations.

Hidden fees and unpredictable costs

International transfers often involve multiple fee layers that aren’t visible upfront. A $10,000 payment may arrive short after deductions along the route.

Common fee types include:

• Origination fees: Charged by your bank to send the transfer
• Intermediary fees: Deducted by correspondent banks handling the payment
• Receiving fees: Charged by the beneficiary’s bank
• FX markup: A spread added to the exchange rate, often 1%–3% above the mid-market rate

Because these fees compound, budgeting for international vendor payments becomes difficult without full transparency.

Currency exchange rate fluctuations

Foreign exchange (FX) volatility can materially affect large B2B transactions. If you receive a €100,000 invoice with net 60 terms, the rate at payment may differ meaningfully from the rate at invoice receipt.

Even a 2% movement changes your actual cost by thousands of dollars. For companies with significant international spend, unmanaged FX exposure can erode margins.

Regulatory compliance complexity

Cross-border payments must comply with sanctions lists, anti-money laundering (AML) rules, and Know Your Customer (KYC) requirements. Screening requirements vary by jurisdiction and transaction size.

High-value or first-time payments often trigger enhanced reviews, adding time and documentation requirements. While providers manage much of the screening, your team remains responsible for initiating compliant transactions.

Fraud and security risks

International B2B payments are frequent targets for business email compromise (BEC) and vendor impersonation schemes. Fraudsters redirect legitimate payments to accounts they control.

Once funds settle internationally, recovery is difficult. Strong verification controls, such as confirming banking changes through a known phone number, are essential.

Cross-border invoice reconciliation difficulties

Reconciliation becomes complex when FX conversion, partial payments, and bank deductions change the final amount received. The amount sent rarely matches the amount credited exactly.

Without automation, finance teams spend significant time manually matching payments to invoices and investigating discrepancies across systems and currencies.

Best practices for B2B international payments

Managing B2B international payments effectively requires structure, visibility, and automation. The right processes reduce errors, control costs, and protect vendor relationships.

Automate payment processes and approvals

Automation reduces manual errors and shortens payment cycles. Structured approval workflows enforce spending policies without creating bottlenecks.

When you manage dozens of global vendors, spreadsheets and email approvals don’t scale. Automated systems link payments to vendor records, surface contract terms, and flag duplicate or high-risk transactions before funds leave your account.

Implement real-time payment tracking

Visibility into payment status improves both cash flow planning and vendor communication. You should be able to see whether a payment is pending, in transit, or settled at any time.

Tracking also reveals performance patterns. If certain corridors or banks consistently delay settlement, you can adjust routing or payment methods proactively.

Centralize vendor management and documentation

Accurate vendor records prevent errors and simplify compliance. Banking details, tax forms, contracts, and communication history should live in one system.

Centralization is especially important for vendor contract management. When vendor data is fragmented across tools, reconciliation becomes slower and audit preparation becomes riskier.

Choose the right payment method for each transaction

Different B2B transactions require different payment methods. Aligning speed, cost, and control with transaction size helps you optimize both margin and operational efficiency.

Choosing intentionally prevents overpaying for speed when you don’t need it—or sacrificing settlement time when timing matters.

Integrate payments with your accounting system

Integration eliminates manual data entry and improves reconciliation accuracy. When international payments automatically sync to your accounting software, you reduce errors and accelerate month-end close.

Automated syncing also supports better reporting and audit readiness. Clean, centralized data lets you analyze global spend without manually stitching together information across systems.

How to manage FX risk in international B2B payments

Foreign exchange (FX) risk can materially increase the cost of B2B international payments. Even small rate movements affect large invoices. A 1% swing on a $500,000 payment equals $5,000 in additional expense.

If you pay vendors in foreign currencies regularly, you need a defined FX strategy rather than reacting to market rates at the time of payment.

Practical ways to manage FX risk include:

• Lock in rates early: Use forward contracts to secure exchange rates for future payments so you can budget with certainty
• Hold foreign currency balances: Maintain multi-currency accounts to convert funds when rates are favorable instead of at invoice due date
• Negotiate invoice currency: Request invoices in your home currency when possible to shift FX exposure to the vendor
• Monitor exchange rate trends: Track major currency movements to time non-urgent payments strategically

The right approach depends on your payment volume, margin sensitivity, and risk tolerance. Companies with meaningful international exposure often combine multiple strategies to reduce volatility without overcomplicating operations.

Regulations and taxes for global B2B payments

International B2B payments carry regulatory and tax obligations that you can’t ignore. While your payment provider performs screening and processing, your business remains responsible for initiating compliant transactions and maintaining proper documentation.

International payment regulations

Cross-border payments are subject to sanctions screening, anti-money laundering (AML) controls, and Know Your Customer (KYC) requirements. In the US, the Office of Foreign Assets Control (OFAC) restricts payments to certain countries, entities, and individuals.

Banks automatically screen transactions, but high-value or first-time transfers may trigger enhanced due diligence reviews. You’re responsible for ensuring vendor information is accurate and that you’re not transacting with restricted parties.

Data privacy regulations such as GDPR may also apply when transferring payment information across borders, especially if you operate in or transact with entities in the European Union.

Tax implications for cross-border B2B transactions

Certain cross-border payments may trigger withholding tax obligations depending on the payment type and countries involved. Payments for services, royalties, or interest often require specific tax documentation and may require you to withhold and remit a portion of the payment.

Value-added tax (VAT) and goods and services tax (GST) rules can also affect international purchases. Maintaining accurate cross-border payment documentation and supporting tax records helps ensure compliance and simplifies audits.

Because tax treaties and reporting rules vary by jurisdiction, consult a tax professional familiar with international transactions if you’re making high-value or recurring global payments.

Send B2B international payments with Ramp

Ramp gives you a single platform to manage both domestic and international B2B payments with full visibility and control. Instead of juggling banks, cards, and disconnected systems, you can centralize approvals, execution, and reconciliation in one place.

Ramp Bill Pay supports multiple currencies and payment methods so you can match the right rail to each vendor and transaction:

• ACH: Ideal for payroll, recurring vendor payments, and predictable disbursements. Ramp supports both standard and same-day ACH for eligible payments
• Domestic wire transfers: Designed for large, time-sensitive US payments, including same-day wires processed through Fedwire
• International wire transfers: Send payments to vendors abroad in US dollars or in their local currency
• Ramp cards: Pay vendors with physical or virtual cards to earn cashback while maintaining spend controls
• Check payments: Issue and mail checks to US vendors directly through Ramp

Because payments sync automatically with your accounting system, you reduce manual entry and simplify reconciliation. Whether you’re paying a one-time overseas invoice or managing recurring global suppliers, Ramp Bill Pay helps you execute B2B international payments with speed, transparency, and control.