Blog on international payments
How to pay suppliers abroad and get paid by buyers, what the bank asks for, how currency control and documents work. Short and to the point.
How to pay
- Floating exchange rate: know the payment cost before the debitWhy the rate on a payment abroad differs from the Bank of Russia rate, where importers lose on fluctuations and how to fix a payment's cost before the debit.
- How a company can pay for goods abroad: three working methodsA transfer from your bank, an account abroad or an agent under an agency agreement: how import payment methods differ, what documents you need, how to choose.
- How a company can send money to a supplier in ChinaWhat Chinese banks check, which currency to pay in, how to word the payment purpose and which documents to prepare so that the money is not sent back.
- How to choose a bank and route for a payment abroadWhy banks refuse foreign currency payments and return the money, what to ask your bank before a transfer and why the payment route matters more than the bank.
- Paying a foreign counterparty: settlement methods and documentsWhat to put in the contract first, how a transfer, letter of credit, collection and agent payment differ, which documents you need and where errors occur.
- Paying a supplier in Turkey: how to do it and what to prepareWhy Turkish banks return payments from Russia, which currency to pay in, how to check the IBAN and the payment purpose, and which documents an importer needs.
- Payment systems in China: CIPS, CNAPS, Alipay and WeChat PayHow settlements work in China: CNAPS inside the country, CIPS for yuan from abroad, SWIFT transfers. Why Alipay and WeChat Pay are not for contract payments.
- Settling in dollars, yuan or roubles: what an importer should chooseHow paying a foreign supplier in dollars, euros, yuan and roubles differs: routes, conversion, currency risk and currency control. And how to choose.
- SWIFT, SPFS and CIPS: how international payments work todayWhat SWIFT is and why it does not move money, what changed after some Russian banks were cut off, and how SPFS, CIPS and other payment channels work.
- What it costs to pay an invoice: fee, FX markup and fixed chargesWhat makes up the price of a payment abroad: the fee, FX markup, bank charges and conversion. How to calculate the total in roubles and compare offers.
Currency control
- Currency control fines: what is penalized and how to avoid themWhich currency law violations lead to fines for companies and directors, who detects them, and which habits in working with the bank reduce the risk of a fine.
- Currency regulation for companies: 173-FZ, residents, non-residentsHow currency regulation works in Russia: what Law 173-FZ says, who is a resident and who is not, who supervises, and a company's obligations under a deal.
- Currency risks in foreign trade and how to limit themThe risks importers and exporters carry when settling in foreign currency: rate, conversion cost, counterparty, payment route, documents. And how to limit them.
- Currency transaction code: who sets it and what errors delay paymentsWhat a currency transaction type code is, where it is stated, how the bank determines it and which coding errors delay payments for imports and exports.
- Instruction 181-I in plain English: what your bank will askWhat Bank of Russia Instruction No. 181-I requires of importers and exporters: contract registration, payment and delivery documents, common mistakes.
Documents and contracts
- Filling in an invoice so the payment goes through: fields and errorsWhich invoice fields the agent, the bank and currency control check, how a proforma differs from a commercial invoice, and which errors stop a payment.
- How to check a foreign counterparty before payingWhat to check about a foreign supplier before paying: its registration, bank details against the contract, signs of a substituted account, bank restrictions.
- IBAN, SWIFT/BIC and beneficiary details: how to get them rightHow IBAN and SWIFT/BIC are structured, which countries have no IBAN, what beneficiary details a payment abroad needs and which errors send the money back.
- Performing a foreign trade contract: the payment sideWhich contract terms govern payment, when it is registered with the bank, how to run a series of payments and close it with no open advances or bank queries.
Customs and logistics
- Customs declaration and payment: how they connect and how to check itHow the goods declaration relates to paying the supplier, how to check it by number and match it to the contract and invoice to avoid bank and customs queries.
- Equipment from China: how to pay, clear customs and deliverBuying equipment in China step by step: the contract and delivery terms, paying the supplier in yuan, customs documents, choosing a route and common mistakes.
- Logistics invoices: who pays the freight and what the bank checksWho pays freight under Incoterms, which invoices carriers and forwarders issue, what documents the bank needs, and how to keep payment from holding up cargo.
Export
- Export proceeds control: what the bank expects from an exporterHow the bank monitors export proceeds: contract registration, receipt deadlines, delivery documents, common exporter mistakes and what to do if payment is late.
- How an exporter can get paid by a foreign buyerWays to get paid for exports: direct transfer, letter of credit, collection, payment via an agent. Contract terms to include and documents the bank needs.
- Repatriation of proceeds: rules and what to do if money hasn't arrivedWhat the law on repatriation of proceeds requires, how the bank checks it and which lawful instruments exist if payment is stuck with a buyer abroad.
Payment agents
- Currency agent, payment agent and broker: who is responsible for whatCurrency control agent, payment agent and settlements broker: how they differ, who moves the money, who checks the deal and who selects the route.
- How a payment agent works in foreign trade: agreement, order, reportWhat a payment agent in foreign trade is, on what basis it pays your supplier for you, and the three documents behind a deal: agreement, payment order, report.
- How to choose a payment agent: what to check before the first paymentAgreement, report, all-in rate and who actually sends the money: what to check in a payment agent and how a broker with a pool differs from a single agent.
- Paying a supplier through a payment agent: step by stepHow to pay a foreign supplier through a payment agent: which documents to collect, what to fix before the debit and how to close the payment in your books.
- Risks of working with a payment agent and how to reduce themWhere money and time are lost when paying through a payment agent: prepayment, floating rate, returns, sub-agents, documents. And what to do about each risk.
Request a quote
Describe the payment. We'll reply with a proposed route and terms. We name the agent in advance, and the rate and fee go into the payment order before your roubles are debited.