American dollars are accepted widely across the world and it’s common for foreign vendors to submit invoices and accept payments in this currency instead of their own. Because some exotic bills are uncommon, it’s a sensible practice for a number of nations. Additionally, some foreign tenders are volatile and operating with the secure US dollar provides a necessary measure of stability. Others are simply following established industry business practices held by their competitors.
While this may seem like a mutually beneficial practice, it’s important to note that, while stable, American currency is also subject to volatility, albeit on a much smaller scale than some other countries. For this reason, many vendors add a buffer to their bills in order to protect themselves against potential fluctuation.
Regardless, at the end of the transaction this recipient will exchange these funds for their own local currency in order to pay their workers and expenses. Whether you realized it or not, this practice is adding extra costs to your bills. Overtime, these unnecessary fees add up and affect your bottom line.
In order to avoid this extra expense, you can choose to pay in the vendor’s local currency to encourage better ongoing pricing. Our Global Payment Network is designed for situations like these. It allows for payments in over 130 currencies to more than 200 countries and territories, many of which are sent via in-country, local bank channels.
Some benefits include:
- Payments Credit Faster
- Funds Arrive in Full
- Encourages Better Pricing
Connect with one of our foreign exchange payment specialists to evaluate your potential savings.
Disclaimer:
Convera has based the opinions expressed in this webpage on information generally available to the public, and such information or opinions are strictly for illustrative purposes only. Business between you and Convera shall be governed by the applicable terms and conditions provided to you before you undertake any transaction or commercial relationship with Convera.
