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Posted March 30, 2016

international payments

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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.

travel infographic
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.

currency scenario inside
24 billing currencies offered by WEX currently:

Americas Europe
  • United States Dollar (USD)
  • Canadian Dollar (CAD)
  • Mexican Peso (MXN)
  • Brazilian Real (BRL)
  • Euro (EUR)
  • Swiss Franc (CHF)
  • Czech Koruna (CZK)
  • Danish Krone (DKK)
  • British Pound (GBP)
  • Hungarian Forint (HUF)
  • Norwegian Krone (NOK)
  • Polish Zloty (PLN)
  • Russian Ruble (RUB)
  • Swedish Krona (SEK)
  • Turkish Lira (TRY)
APAC Africa and Middle East
  • Australian Dollar (AUD)
  • Hong Kong Dollar (HKD)
  • Japanese Yen (JPY)
  • Malaysian Ringgit (MYR)
  • New Zealand Dollar (NZD)
  • Singapore Dollar (SGD)
  • Thai Baht (THB)
  • South African Rand (ZAR)
  • Emirati Dirham (AED)

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.

currency scenario outside

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:

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