Seamless Cross Border Payments: How to Perform International Transactions in 2025

Cross border payments have become increasingly popular with the advent of corporate globalisation. Thus, many businesses are switching to the efficient, safe, and user-friendly methods to perform international transactions with minimal effort and cost.

As a result, two cross border payment types come to the scene: international gateways and international payment processors. What exactly are these; key things to keep in mind when performing these transactions and various types of cross border payments? Let’s unveil these in brief in this blog!

International Payment Gateways vs. Payment Processors

Payment gateways and payment processors may seem interchangeable at first sight, but there are noticeable differences between them.

Payment gateways are the intermediaries between the sender and the payment receiver. It collects your card or bank details, encrypts them, and then sends them safely for approval. In other words, they collect and send payment info to the required money receiver.

On the other hand, payment processors are the actual processors that move the money during transactions. It checks if the sender has enough funds to transfer money and then accepts or declines the payment to the seller. In short, they move the money between two accounts.

Red Flags to Consider When Choosing Cross Border Payment Methods

There are certain red flags to consider when you’re performing cross border payment transactions. They act as the critical checklist to ensure during the process. Here are those critical red flags listed:

• 1. Transactional Security: Ensure there’s robust security through Three-Factor Authentication (3FA) and encryption during transactions.
• 2. Money Transfer Cost: Cross border gatewayshave a nominal fee depending on the sender’s and receiver’s location, varying from country-to-country. It’s important to verify them beforehand before performing the necessary operations.
• 3. Speed of Transaction: Time is money in the competitive corporate environment. Check that the payment methods you’re leveraging have enough speed to perform transactions even through smartphones and tablets while travelling or multi-tasking.
• 4. Understanding the Local Laws Regulations: Every country has some sort of laws and regulations concerning cross border transactions. For instance, the UK levies import duty on products from India. Have a clear and transparent knowledge of these rules.

Key Types of Cross Border Payments Solutions

Below listed are the key cross border payment solutions that are widely accepted in the modern corporate landscape:

1. International Transfer Providers

International transfer providers are like a middleperson. You give them money in your country (UK, in our case), and they deliver it to another country (for instance, India). In essence, they serve as a payment gateway that streamlines your money transfer in less time with minimal effort and processing fees.

2. P2P Payments

P2P, or person-to-person, payment is the most popular way of sending money due to its practicality and user-friendliness. You may have used them in your day-to-day life without realising it. The common examples include Unified Payment Interface (UPI), where you send money directly from your phone to another person’s smartphone. Although it comes with a drawback, as they may not be functional in all countries, like Singapore, the UAE, Sri Lanka, France, etc.

3. SWIFT Payments

SWIFT payments are the most traditional way of cross border gateways that rely on bank-to-bank transfer system. Similar to P2P payments, you may have used this method. For instance, you may have visited the bank, filled in the receiver’s details, and had the money transferred. This method is highly secure, although it’s the slowest compared to all other methods. Consequently, these methods are rarely used in the time-bound corporate landscape.

4. Debit Cards

A debit card is the physical card to pay money through swiping, enabling money transfer from one bank account to another. Moreover, it allows you to withdraw cash through various ATM machines worldwide. For instance, you can withdraw money from HSBC through ATMs in the United States (US). However, they charge a small percentage of currency conversion fees.

5. Credit Cards

Credit cards are similar to debit cards, except they pay for you first and then bill you later in your local currency. This method is widely accepted and can act as a lifeline during an emergency situation in an event of smaller bank balance than required to transfer. However, their exorbitant interest rates and foreign transaction rates can make it costlier and comparatively less practical.

Power Your Cross Border Payments with Payfac Solutions

Cross border payment solutions should be hassle-free and seamless. That’s what we, Payfac Solutions, believe in, forming a key pillar of our mission to simplify global transactions. With the reputation of delivering worldwide happiness through effortless payment solutions, we’ve earned trust from thousands of users worldwide since our inception.

You can be on the list. Simply consult our team by clicking HERE. Make Payfac Solutions your first-go solution to simplify cross border payment transactions!