by WEX Travel
If you have international suppliers, you may believe that FX mark ups and cross-currency transaction fees are a necessary cost of doing business when paying suppliers in foreign currencies. But have you ever stopped to calculate how much are you really spending?
FX rate mark ups and cross-currency transaction fees average 3% on each payment to international suppliers which may not seem like a large cost. You justify it, pay the fees, and move on. You’ve become accustomed to the fees—so accustomed, in fact, that you may not even think how much it costs you each year.
Save Thousands On International Payments
While 3% per transaction made does not sound like a major burden on your business, the costs add up. Our new infographic takes a deeper look into the costs of ‘business as usual’ in international transactions, and what 3% really means to show how a mid-sized travel company could save as much as £1 million over the course of a year.
As each 3% charge adds up, the resulting amount is significant, and could be draining you of agility, exposing you to unnecessary fluctuation risk, and making your travel company less competitive.
Infographic: What 3% Charges Mean for Your Business and Customers
The infographic, shared below, shows just how much you can save by using WEX virtual card numbers (VCNs) to avoid the additional 3% in costs and simplify conversion to 24 currencies without FX mark ups or cross-currency fees.
Click here to download the complete infographic.
The Answer to FX Charges: WEX Virtual Card Numbers
VCNs help businesses save time and money in international transactions, avoiding cross-currency fees, FX mark ups, and fluctuations.
How It Works
For travel businesses operating in one of the 24 currencies listed below, we save you money by allowing you to pay your supplier in their local currency whilst also settling with WEX in that currency. You avoid FX mark ups and cross-currency transaction fees plus FX rate fluctuations. For example:
- Scenario: Travel company would like to use WEX VCNs to pay a Thai supplier.
- Solution: Travel company pays supplier with a VCN in THB and settles with WEX in THB. No FX mark up or cross-currency transaction fees apply.
24 billing currencies offered by WEX currently:
|APAC||Africa and Middle East|
Extensive Currency Conversion Solutions – Global Supplier Payments
In addition to these 24 currencies, we can provide extensive currency conversion solutions to you without mark ups enabling payments to international suppliers over 190 countries. You pay us in your local currency and the conversion is done for you, without additional mark up, while your supplier gets paid in their local currency. Example:
- Scenario: Travel company has suppliers in Croatia but the currency is currently not offered as a billing currency on VCNs.
- Solution: Travel company pays supplier in Croatian kuna with a VCN and settles with WEX in travel company’s local currency. A small conversion fee applies from GBP to HRK which WEX does not mark up from Visa or MasterCard rate.
Learn More about WEX Payments for Travel Brands
Whether it’s avoiding FX mark ups, cross-currency fees, or airline surcharges, VCNs have saved travel brands money, freed up cash flow, and offered unmatched control and transparency over the payment process. Learn more by watching this short video on WEX Travel Payments, and learn more from the following case studies: