Cross-Border Payments Guide: Choosing the Right Solutions

Understanding cross-border payments: what businesses need to know

When your business expands to work with partners abroad, you may run into new challenges. An international payment can take days to clear; a contractor’s local bank may not support your preferred transfer method; unexpected FX markups chip away at margins. Each new country brings its own banking quirks and compliance steps, and those small complications add up.

Before long, it becomes clear that relying on traditional cross-border payment methods isn’t enough. You need faster, more predictable ways to move money around the globe.

New financial technologies are helping address these challenges. Modern payment rails offer clearer visibility into fees, more predictable settlement in certain corridors, and alternatives to traditional bank transfers. These developments give businesses more options for managing cross-border transactions and can make the process quicker and more cost-effective than relying solely on legacy payment methods.

In this guide, we’ll walk through the fundamentals of cross-border payments: how they work, the differences between major payment methods, and how to choose the right option for each type of recipient or transaction. We’ll also highlight how Slash streamlines global payments by unifying traditional rails with modern financial infrastructure. From a single dashboard, you can send international wire transfers to over 160 countries via the SWIFT network or make USD-denominated transfers using stablecoin on- and off-ramps, allowing you to send money quickly and avoid traditional fees.⁴

How do cross-border payments work?

A cross-border payment is any transaction made between parties in different countries. These payments may be routed through banks, payment networks, or digital platforms, all of which operate under different rules and settlement frameworks.

As a result, the mechanics of sending a cross-border transfer can differ significantly from one payment method to another. The following points outline how different cross-border payment methods are processed and what to consider when evaluating each option:

Currency conversion: Most cross-border payments require converting one currency into another. Financial institutions typically apply an exchange rate fee plus a foreign transaction (FX) markup that is charged to the sender. These costs are often one of the biggest drivers of cross-border payment fees; however, they can be avoided with certain types of transfer methods.
Intermediary banks: If a sending bank and a receiving bank don’t have a direct relationship, the payment will usually move through one or more intermediary banks. Because intermediaries apply their own processing fees, compliance checks, and routing procedures, payments must clear multiple checkpoints. This can result in higher costs and longer settlement timelines.
Correspondent banks: Correspondent banks maintain accounts on behalf of foreign banks so they can send, receive, and settle international transfers. While intermediary banks bridge gaps between institutions with no connection, correspondent banks form established networks that enable smoother settlements.
SWIFT Network: The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is a global messaging network that banks use to communicate the details of an international wire transfer. When you send a cross-border payment, SWIFT transmits standardized instructions between the sending bank, any intermediary banks, and the receiving bank so each institution knows how to route and verify the funds.
Closed-network rails: Digital wallets such as Wise or PayPal process cross-border payments by transferring funds within their own closed-network payment rails rather than routing them through banks. While providers do charge FX fees, settlement times can be drastically shortened.
Blockchain-based payments: Blockchain payments move funds across borders by recording the transaction on a decentralized ledger rather than sending money through banks or intermediaries. Stablecoins operate on the same rails but maintain a fixed value by being pegged to USD or another currency, which reduces volatility. Because transfers occur directly on the blockchain, they typically settle within minutes and do not rely on currency conversion from banks.

Individuals in the U.S. also have specific rights and protections when sending money, enforced by the Consumer Financial Protection Bureau (CFPB). These include the right to receive transfer details in your preferred language, the ability to cancel a transfer within 30 minutes at no extra cost, and up to 180 days to report errors to your transfer provider.

What are the best solutions for cross-border payments?

Different global payment options have their own strengths and weaknesses. Some methods are better suited for recurring B2B payments, while others work best for large, one-time transfers. Each rail handles transaction volume, frequency, and recipient requirements differently. Below is a breakdown of the most common payment types and when to use them:

International wire transfers

Cross-border wire transfers are one of the most common B2B payment methods. They move funds bank-to-bank, often through the SWIFT network, making them widely accepted and suitable for high-value transactions. However, when sending wires to out-of-network bank accounts, they may take several business days to settle and incur intermediary bank fees, which can make them costly for frequent or small payments.

Cryptocurrency and stablecoins

Blockchain-based transfers can settle within minutes and bypass the intermediary bank fees and FX markups common in traditional cross-border payments. While these networks are still evolving, they’re becoming increasingly popular for both B2B and peer-to-peer (P2P) transactions due to their speed and low costs. Slash supports stablecoin on- and off-ramps, allowing businesses to send USD-denominated payments in USDC, USDT, and USDSL as a fast, cost-efficient option for global transfers.

Corporate cards

Corporate cards can be a flexible and reliable way to handle cross-border spending. They’re useful for day-to-day international expenses, especially if you’re managing employee or contractor spending. Depending on the issuer, FX fees and currency conversion charges may apply, so it’s important to review the card’s fee structure before relying on it for global use. Slash offers a corporate charge card that earns up to 2% cashback on purchases with low FX fees, customizable spend controls, and real-time insights.¹

International money orders

Money orders are a more traditional form of cross-border payment. They’re secure, prepaid instruments used for sending guaranteed funds to countries where digital banking access is limited. They offer reliability but are slow, manual, and typically unsuitable for modern B2B or high-volume transactions.

International clearing house transfers

Although the Automated Clearing House (ACH) is a domestic U.S. network, similar bank transfer networks exist worldwide, like SEPA in Europe or BACS in the U.K. Through correspondent banks and clearing houses, businesses can send cross-border transfers at lower costs than wire transfers. Settlement times may be slower than alternatives and availability depends on the recipient’s location and banking system.

Multi-currency accounts

Multi-currency accounts are an increasingly popular global payment solution for businesses that operate across several regions. Instead of relying on banks to process every currency conversion, these accounts allow your business to hold, send, and receive multiple currencies in one place. This can significantly reduce FX fees, especially if you regularly work with suppliers, customers, or contractors in different countries.

Digital wallets

Digital wallets, or closed-network payment systems offered by providers like Wise, PayPal, and Stripe, are a popular option for smaller cross-border transfers. They offer transparent fees and fast processing, making them useful for one-off payments to partners or contractors. However, digital wallets come with limitations: availability can vary by country, currency support may be inconsistent, and many providers impose transfer caps that restrict larger B2B payouts.

What are cross-border payments used for?

Cross-border payments support a wide range of activities for businesses, individuals, and nonprofits operating internationally. Whether you’re paying a foreign supplier, hiring global talent, or transferring funds to support family abroad, different types of payment methods can align with different transaction types. Understanding the most common use cases can help businesses reduce costs, maintain compliance, and build stronger relationships across international markets:

B2B cross-border payments

Partnering with a business in another country can offer access to unique materials, better pricing, specialized manufacturing, or services not available domestically. Multiple global payment methods such as international wire transfers, multi-currency accounts, and stablecoins can support these transactions. Choosing rails that comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements can help prevent downstream compliance issues and make it easier to meet a business partner’s needs.

International contractors

Hiring independent contractors abroad expands access to global talent and helps businesses enter new markets. However, some contractors rely on local banks without SWIFT access or prefer digital wallets. A platform with multiple cross-border payment methods and automated scheduling like Slash can simplify international payouts and streamline contractor management. For more information, read our in-depth guide about paying international contractors.

Remittances

Although “remittance” can refer to any money transfer, it often describes funds sent by individuals back to their home country. These payments are common among immigrant workers, small business owners supporting family abroad, and entrepreneurs with ties to another region. Traditional bank transfers are often used, but stablecoins can reduce FX losses and speed up settlement. For non-U.S. entities, the Slash Global USD account enables USD-pegged stablecoin transfers without requiring an LLC.

International investment

Businesses with overseas ventures may use cross-border payments to fund subsidiaries, invest in partners, or purchase foreign assets. These transfers typically run through regulated channels like SWIFT wires to satisfy investment, tax, and AML/KYC requirements. For companies with multiple subsidiaries, Slash’s multi-entity support centralizes expense data and account management, which can improve visibility over global operations.

Benefits and drawbacks of modern cross-border payments

How a business uses cross-border payments—whether it’s to pay international contractors, source materials overseas, or fund growth in another region—can shape both the advantages and the challenges it encounters. Modern payment tools can streamline global operations, but they may also introduce new considerations around cost, regulation, and infrastructure.

Benefits

Access to global talent: Cross-border payment tools make it easier to hire specialized workers anywhere in the world. This expands the available talent pool and helps businesses find expertise that may not be accessible domestically.
Cost savings: International sourcing can reduce production, labor, and operational costs. Paying vendors or contractors in their local currencies or using rails with low transaction costs can minimize FX markups and help secure more competitive pricing.
Multi-currency support: Many modern platforms support multi-currency accounts or banking capabilities in several countries. This allows businesses to receive payments locally, hold foreign currencies, and avoid repeated currency conversion, which reduces FX exposure and speeds up regional operations.
Payment automation: With Slash, you can schedule international transfers, automate expense tracking, and streamline invoice tracking workflows to reduce manual administrative tasks and lower the risk of errors. Automation is especially helpful for companies managing regular payments across several countries.
Integrated financial management tools: Some platforms, like Slash, combine cross-border payments with accounting integrations, analytics dashboards, and automated spend controls. These features can give businesses greater visibility into global cash flow and simplify reconciliation across currencies and countries.

Drawbacks

Exchange fees: Banks, card networks, and some digital wallets often apply FX markups or additional conversion charges that increase the total cost of international transactions. Slash can help reduce these costs by enabling USD-pegged stablecoin transfers that avoid traditional FX fees.
Complex compliance requirements: Cross-border payments must comply with varying AML, KYC, tax, and reporting regulations across jurisdictions. These requirements can create additional administrative work and may require specialized review, especially when working in multiple regions or sending larger transactions.

Choosing the right global payment solution

Each global payment system has its own specialized use cases and limitations. However, some financial platforms can combine multiple different cross-border payment methods to give greater flexibility in managing international operations. When evaluating a cross-border payment platform, look for the following attributes:

Quick settlement options: Choose platforms that offer predictable settlement times and support faster alternatives to traditional correspondent banking when possible. Consistent timing helps businesses manage cash flow and avoid operational delays.
Automations, real-time visibility and analytics: Automated workflows such as scheduled transfers or recurring contractor payments can reduce manual work. Real-time dashboards and analytics from Slash give clearer insight into where funds are moving, helping teams monitor global spending more effectively.
Integrations: Connectivity with accounting software, ERP systems, and bank accounts can streamline reconciliation and reduce errors. Slash integrates with QuickBooks for smart accounting tools and invoice management. This is especially helpful for businesses managing high transaction volume or multiple global vendors.
Global compliance measures: Built-in AML/KYC checks, sanctions screening, and documentation support can help reduce compliance risk.
Scalability for multi-entity operations: As businesses expand globally, managing payments across multiple subsidiaries can become increasingly complex. Platforms with strong multi-entity support like Slash centralize accounts from all entities in one place, providing quick access to statements and clear insights into spending across your business.

Simplify global payments with Slash

With Slash, your entire global payment workflow becomes easier to manage from a single platform. You can rely on traditional rails when needed and choose modern payment methods when they offer better speed or cost efficiency. Built-in analytics, expense controls, and accounting integrations give you clearer oversight of your finances and help your business operate more confidently as it expands across borders.

Slash supports international wire transfers to over 160 countries through the SWIFT network, providing a direct and reliable way to pay global vendors or subsidiaries. For faster transfers without traditional FX fees, businesses can also access stablecoin on- and off-ramps and send USD-denominated payments using USDC, USDT, or USDSL. Non-U.S. businesses can also take advantage of Slash Global USD, which enables global stablecoin transfers without requiring an LLC.

For day-to-day spending, the Slash Visa® Platinum Card can be issued to workers abroad and offers customizable card controls, real-time spend insights, and up to 2% cash back on purchases.

To support growing organizations, Slash offers multi-entity capabilities that centralize cash flow, statements, and controls across multiple subsidiaries. With integrations through Plaid and QuickBooks, you can sync banking data, incorporate digital wallets, and streamline accounting and reconciliation with minimal manual effort.

If your business is looking for a faster, more flexible way to manage cross-border payments, Slash brings everything you need into a single platform. Learn more at slash.com.

Frequently asked questions

How fast can cross-border payments be settled?

Settlement times vary widely depending on the payment method. International money orders can take several weeks because they travel through the postal system. Traditional bank transfers typically require a few business days to process due to intermediary banks and compliance checks. Digital wallets and blockchain-based payments can move funds almost instantly, though recipients may still face delays when withdrawing or converting the money into a local currency.

What is a cross-border payment fee?

Cross-border payment fees are charges applied at different points in the transfer process. These may include currency conversion fees, foreign transaction fees, and intermediary bank charges when a payment passes through multiple institutions. Depending on the route and payment size, these fees can stack together and significantly increase the total cost of a transfer.

Is XRP being used for cross-border payments?

Some financial institutions have tested or piloted XRP-based settlement systems, but adoption remains limited. Most global payments still rely on traditional rails, like SWIFT, or newer options such as stablecoins, which tend to offer more predictable pricing and broader regulatory acceptance.