How to receive international business payments

For many small UK-based businesses, receiving money from abroad has gone from rare to routine. Whether you’re freelancing for overseas clients, selling through global marketplaces or importing and exporting products, cross-border payments are now part of everyday life.

But working out how to get paid internationally isn’t always straightforward.

Should you stick with a traditional bank transfer? Set up a multi-currency account? What are the fees, and what isn't your bank telling you?

This guide explores some of the main ways UK sole traders and small businesses receive international payments. In it, we’ll look at the key considerations, pros and cons, and some of the key things to watch out for.

Why international payments matter for small businesses

According to the UK government’s Department for Business and Trade, there was over 314,000 registered SMEs that were exporting goods and/or service in 2023, showing how vital international trade is for small businesses.

Expanding your customer base beyond the UK opens exciting, potentially lucrative opportunities. But setting up international payments can come with challenges. Currency conversions, high fees and delayed transfers can frustrate both you and your customers. Choosing the right method for receiving international payments can make all the difference, saving you time and money and helping keep your business running smoothly.

Common methods for receiving international payments

Small businesses have several options for accepting payments from overseas. Individual circumstances like business size, customer locations and transaction volumes will influence what works best for you, so it’s worth spending time researching the methods available.

The most common methods businesses use for receiving international payments:

1. International bank transfers (SWIFT & IBAN)

Traditional bank transfers are a reliable and widely accepted method for international payments. They’re a common choice for high-value transactions due to their perceived security. The process is straightforward: your client sends funds directly to your business bank account using your unique International Bank Account Number (IBAN) and the bank's SWIFT/BIC code.

Pros:

• Secure and reliable – Uses established banking networks
• Widely accepted – Most banks globally support this method

Cons:

• Slow processing times – Transfers can take three to five business days to clear (and sometimes longer)
• High fees – Banks that send, pass through and receive international bank transfers often charge a fee, which can range anywhere from £10 to £30 per transaction

Unfavourable exchange rates – Some banks offer a less competitive exchange rate than specialised services, which eats into your profit margin

Zempler Bank partners with Wise, giving businesses access to fast, low-cost international payments.

2. Online payment platforms

For businesses receiving frequent smaller international transactions, online payment platforms offer convenience and speed. These services, like PayPal, Stripe and Wise, are popular for their user-friendly interfaces and seamless integration with ecommerce sites. A small online retailer selling to customers in Australia, for example, could use PayPal to receive payments almost instantly.

Pros:

• Speed and convenience – Payments often processed in minutes
• Easy integration – Usually quick to set up on most ecommerce platforms
• Global reach – Trusted by lots of consumers and businesses worldwide

Cons:

• Steep transaction fees – A percentage-based fee (typically 2% to 4%) is charged on each payment, which can significantly reduce profits on high-value sales
• Currency conversion costs – Additional fees for converting currencies can apply, which eats into your profits even more

3. Multi-currency accounts

Multi-currency accounts, like those offered by Wise Business, are a flexible solution. They let you hold, send and receive money in lots of currencies including US dollars (USD), euros (EUR) and British pounds (GBP) without forced conversion.

So if your UK-based business is paid in USD from a US client, you can receive the payment directly into a USD wallet within your multi-currency account. You can then convert the funds to GBP whenever you want. If you don't immediately need the money, you can choose to convert when the exchange rate is more favourable, giving you more control and saving on fees.

Pros:

• Greater control over exchange rates – You choose when to convert your money
• Reduced fees – Avoids constant conversion fees on incoming payments
• Streamlined payments – Receive funds like a local, which can be faster and cheaper for your clients

Cons:

• Initial setup – May require more effort to set up than a standard bank account or payment platform, like PayPal
• Transaction limits – Some providers may have limits on transaction size or volume

Key considerations: how to choose the right international payment method for your business

With a growing number of ways to receive international payments, how do you decide what’s best for your business? The right choice is the most practical one, tailored to your unique circumstances.

Use these three key steps to help you make an informed decision.

1. Assess your business needs

Before you start comparing providers, take a moment to understand your business's specific requirements. Your ideal payment solution will depend on your transaction volume, frequency and values.

• For freelancers or sole traders – If you're a freelancer invoicing a few international clients a month, you’ll want to keep things simple. International bank transfers are easy to set up and ideal for managing a small number of regular transactions.
• For ecommerce stores – An online store with daily international sales needs a payment gateway that can handle high volume and integrate seamlessly with its ecommerce platform, such as Shopify or WooCommerce.
• For large business-to-business (B2B) transactions – If your business receives occasional, high-value payments (from a wholesale client, say), a multi-currency account could be the most cost-effective and flexible choice, allowing you to protect profits from market volatility.

2. Compare costs and speed

Don't just look at the headline fee. To get an accurate picture of the true cost, you need to consider two main things:

• Total cost of all fees – This includes both fixed fees, like a £20 bank transfer fee, and percentage-based fees, like a 4% transaction fee.
• The exchange rate – Many providers may add a hidden markup to the mid-market exchange rate. Always compare the exchange rate you're offered against the real-time mid-market rate. Providers that offer transparent pricing makes budgeting and forecasting much easier.

3. Prioritise security and compliance

Security should always be a top priority. Choose a provider that’s secure and compliant – it builds trust with your clients and protects your business from fraud.

• Regulatory status – Most businesses choose a provider that’s authorised and regulated by a trusted financial body, like the Financial Conduct Authority (FCA) in the UK
• Fraud prevention features – Look for robust security measures, including two-factor authentication (2FA) for your account and advanced fraud detection systems for all transactions
• Client verification – For high-value transactions, always have a clear process for verifying your client's details and ensuring the payment is legitimate

How Zempler Bank simplifies international payments

Managing international payments shouldn’t be a headache for small businesses. We designed Zempler Bank’s business account with sole traders and SMEs in mind. It offers a seamless, digital-first experience. You can apply for an account in minutes, with minimal paperwork – a stark contrast to traditional banks.

Create a Zempler Bank account and start receiving international payments

With a Zempler business account you get:

• The ability to receive international payments from more than 30 countries
• Simple, transparent fees
• Fast, fully-digital setup – apply in minutes
• Smart tools that help you run your business, like cash flow insights and digital receipt capture
• Clear, jargon-free support from real people based in the UK

Join the thousands of small business owners who are already banking the Zempler way.