International AP: How to manage and pay international invoices

Paying international invoices involves more complexity than domestic payments. Businesses must navigate currency conversions, cross-border regulations, banking fees, and varying tax requirements. If your business works with global suppliers, contractors, or service providers, managing these payments efficiently is essential for operational continuity and financial accuracy.

This guide breaks down how international accounts payable works, the payment methods available to you, and how to minimize costs, reduce risk, and stay compliant.

This article provides general guidance on managing and paying international vendor invoices. For details on Ramp’s specific international features, visit Ramp Support.

What is international accounts payable?

This includes receiving, validating, and scheduling cross-border payments, often in multiple currencies and under different regulatory frameworks. When done well, international AP ensures timely payments, protects vendor relationships, and reduces the risk of compliance errors.

Whether you're a growing business working with overseas freelancers or a global company managing a complex supply chain, streamlined international AP supports healthy cash flow, strong vendor relationships, and accurate financial planning.

What makes international invoice payments more complex?

Paying international invoices brings unique challenges based on your industry, payment volume, and vendor locations. Unlike domestic payments, international invoices introduce added steps and variables that can slow down processes and increase costs. Businesses often face:

• Currency conversion: Payments often need to be converted into the vendor’s local currency, exposing you to exchange rate fluctuations
• Cross-border compliance: Each transaction must align with financial regulations in both your country and the vendor’s
• Longer processing times: International bank transfers can take several business days, especially when intermediary banks are involved
• Regional tax rules: Depending on the vendor’s location and your country’s tax laws, you may need to provide forms like W-8BEN or manage country-specific withholding taxes

These challenges become more pronounced as your business grows its global footprint. To manage them effectively, finance teams should invest in automation, establish strong internal controls, and partner with global payment platforms that streamline compliance and currency management.

Traditional vs. modern payment methods for paying international invoices

Selecting the right method to pay international invoices depends on your goals—cost control, speed, vendor preference, or payment volume. Some businesses rely on wire transfers for high-value payments, while others use digital platforms for scale and automation.

Here's how the most common methods compare and when to use each.

1. Bank wire transfers (traditional)

Wire transfers are one of the most established ways to pay international vendors, especially for high-value or one-off payments. They're accepted globally and often expected in industries like manufacturing.

The process is straightforward but manual. You’ll need to:

• Collect vendor banking details such as account number, SWIFT/BIC code, and sometimes a physical bank address
• Initiate the transfer through your bank, either online or in person
• Specify the payment amount, currency, and who will cover any conversion costs
• Complete any required compliance documentation, such as the purpose of payment

Wire transfers are reliable but expensive, with fees often ranging from $25 to $50 per transaction. FX markups and intermediary bank delays can add further costs and time. For growing AP teams, this method is often too slow and costly to scale.

2. Paper checks (traditional)

Paper checks are still used by some businesses to pay international vendors, though they’re becoming increasingly rare. In cross-border scenarios, they’re typically mailed overseas, which adds significant time and risk.

The process involves:

• Issuing a physical check in the vendor’s preferred currency
• Mailing the check to the vendor’s international address
• Waiting for the vendor to deposit and clear the check through their local bank

International checks are slow, hard to track, and highly susceptible to loss or fraud. Processing can take weeks, and fees vary depending on the banks involved. For most modern finance teams, checks are a last resort when no digital method is available.

3. Global ACH (modern)

Global ACH (also called international ACH or cross-border ACH) offers a lower-cost alternative to wire transfers by leveraging local clearing networks to send payments internationally. It's often used for recurring transactions, like monthly payments to overseas contractors or software vendors.

Compared to wires, Global ACH is typically cheaper and more predictable in terms of fees. Because it uses domestic rails on both ends of the transaction, you avoid high intermediary fees and can often benefit from better exchange rates. However, Global ACH payments can take anywhere from one to five business days to process, depending on the countries involved. And not all regions support ACH infrastructure, which limits coverage.

4. Card-based payments (modern)

Card payments offer fast, flexible ways to pay international vendors, especially when digital infrastructure is in place. Here are three card-based payments you can use:

• Virtual cards: Best for one-time vendor payments, software subscriptions, and advertising platforms. These digital-only cards are issued instantly, tied to specific budgets or departments, and offer strong fraud protection, but many vendors outside digital-first industries don’t accept them.
• Credit cards: Useful for flexible payments with quick processing or cashback. They’re widely accepted, but you’ll need to consider foreign transaction fees (typically 2–3%) and possible vendor surcharges.
• Prepaid debit cards: Helpful for paying contractors or temporary workers who lack access to traditional banking infrastructure. They’re relatively fast to issue and don’t require banking details. However, their usage can be limited by local regulations, cash-out availability, and card acceptance.

Card-based payments can be highly effective when control, speed, and digital workflows are priorities—but acceptance and cost should guide how and where you use them.

5. Payment platforms (modern)

Modern payment platforms centralize international invoice payments, combining features like currency conversion, approval workflows, and vendor management in one tool. They often integrate with your ERP or accounting system, streamlining processes and improving visibility.

For companies managing high volumes of cross-border payments, platforms reduce manual work and compliance risk. While they may carry platform or transaction fees, the time savings and control often justify the cost.

Considerations for international payments

Paying international invoices requires more than just selecting a payment method. Finance teams need to manage cost, risk, compliance, and tax implications across every transaction. Here are four key areas to watch:

1. Currency and tax considerations

Exchange rate fluctuations can quickly increase costs—especially for large or recurring payments. Locking in favorable rates or using multi-currency platforms helps minimize volatility.

Tax obligations also vary widely by region and vendor type. Common scenarios include:

• Manufacturers may face VAT or import duties
• Tech companies dealing with digital services taxes in Europe or Asia
• Freelancers requiring special tax withholding based on their residence

U.S.-based businesses paying foreign vendors will often need a completed W-8BEN or W-8BEN-E form on file. These documents help determine tax status and withholding obligations under IRS rules.

2. Regulatory compliance

Cross-border payments are heavily regulated, and non-compliance can result in steep penalties. To stay compliant, teams must proactively manage due diligence and documentation.Some common pitfalls include:

• Insufficient vendor vetting
• Poor transaction monitoring
• Not screening against updated sanctions lists

Mistakes in any of these areas can trigger audit risks, delays, or regulatory fines, especially for businesses operating in high-risk regions.

3. Risk management

International payments come with operational, financial, and fraud-related risks. Without strong controls, errors or security breaches can jeopardize vendor relationships and financial accuracy.

Key practices include:

• Hedging currency exposure with forward contracts or natural hedges
• Enforcing dual-approval workflows for payments
• Validating vendor bank info through secure channels
• Diversifying payment methods and banking partners as a contingency plan

Even with automation in place, maintaining manual checkpoints can catch errors before they turn into major issues.

4. Fees and exchange rates

The true cost of international payments is often hidden. In addition to upfront wire fees, which are typically $20–$50, banks may apply a 2–4% markup to exchange rates without clear disclosure.

To control costs:

• Benchmark payment service providers regularly
• Use tools with real-time FX tracking
• Choose platforms with transparent fees and multi-currency support

Small optimizations can lead to significant savings over time, especially for companies with ongoing international payment needs.

Why accounts payable automation matters for international payments

As your business expands its global vendor network, managing cross-border payments manually becomes increasingly inefficient and risky. AP automation platforms are designed to help finance teams scale international operations without losing control or visibility.

Modern tools streamline everything from invoice capture to payment execution, and can adapt to international requirements such as currency conversion, tax form tracking, and vendor preferences.

Here’s how automation supports international accounts payable:

• Operational efficiency: Automatically extract data from international invoices, match them to purchase orders, route them for multi-level approvals, and execute payments using the most cost-effective method.
• Global visibility: Centralize tracking for payment status, currency exposure, and cash flow across different countries, entities, or bank accounts. This improves forecasting and financial planning on a global scale.
• Vendor relationships: Timely, accurate payments help preserve trust with international suppliers. Automation ensures consistent processing and communication, even across time zones or currencies.
• Compliance and control: Built-in audit trails, approval workflows, and sanctions screening reduce the risk of regulatory missteps. Some platforms even use machine learning to flag unusual patterns that could signal fraud or errors.

When international payment complexity grows, automation becomes a safeguard that helps finance teams reduce risk while operating at scale.

Build a stronger AP foundation before scaling globally

Paying international invoices adds layers of complexity, ranging from currency fluctuations, tax rules, compliance risks, and processing delays. Managing these challenges at scale requires more than manual processes or one-off workarounds.

Ramp helps finance teams streamline global AP operations by combining automation, control, and flexibility, all in one platform. Whether you're managing domestic vendors today or starting to scale internationally, Ramp sets you up with:

• Multi-method payment options: Pay global vendors via wire, ACH, check, or corporate card, while selecting the method that balances cost, speed, and vendor preference
• Faster vendor onboarding: Use Ramp’s “Request from Vendor” feature to securely collect payment details from new suppliers without manual back-and-forth
• International wire support: Send cross-border payments in USD or select local currencies through Ramp’s banking partners

With these tools in place, you can reduce risk, improve payment accuracy, and stay in control as your business scales across borders. Start with infrastructure that gives you control, so your business can move faster and with less friction.

Get started with Ramp Bill Pay.

This article provides general guidance on managing and paying international vendor invoices. For details on Ramp’s specific international features, visit Ramp Support.