Sending an international payment from a UK business account

An international business transfer is not just “a bank transfer in another currency”. The final cost can include the exchange-rate margin, sender fee, intermediary deductions and recipient-bank charges, while timing depends on the currency, destination, compliance checks and cut-off time.

Verify the beneficiary independently before sending

International supplier fraud often begins with a plausible email saying that bank details have changed. The invoice may be genuine and the mailbox may even belong to the real supplier. Before paying a new beneficiary - or changing an existing one - verify the details through a known contact method that did not come from the change request itself.

For a £28,000 equipment invoice, a two-minute independent call is a much cheaper control than trying to recover money after it has reached an overseas account. Record who verified the change, when it was checked and which details were confirmed. Confirmation of Payee is a useful UK name-checking control where available, but it does not provide universal protection for overseas transfers.

Verify beneficiary details outside the invoice or email that requested payment. For a new or changed supplier account, call a trusted contact using a previously known number or another independent route. A £18,000 international transfer deserves a stronger check than simply replying to the same email thread that supplied the new bank details.

Worked payment checkpoint: for a £3,412 transfer, record the beneficiary details, currency, reference, time created, time approved and the date the recipient actually needs the money. If the status remains unclear for 4 hours, check whether the instruction is still queued, released or already debited before sending again. Preserve the confirmation and any bank case reference so a trace can follow one specific payment rather than a general description of missing money.

Choose currency and fee treatment deliberately

If an invoice is for €20,000, the business should decide whether it is sending euros or asking the provider to convert a sterling amount. Those are not necessarily equivalent. The exchange rate can matter more than a visible transfer fee, particularly on larger payments. A provider advertising a £10 fee can still be more expensive overall than one charging £20 if the conversion rate is worse.

Ask for the actual amount that will leave the account and, where the provider can show it, the amount expected to reach the beneficiary. If the supplier needs an exact euro amount to settle an invoice, sending a round sterling amount creates exchange-rate risk for the recipient and may leave part of the invoice unpaid.

Some international transfers pass through correspondent or intermediary banks before reaching the beneficiary. Charges can therefore arise at more than one point. The payment instruction may offer different charging arrangements depending on route and provider, but terminology and availability vary, so confirm what your bank actually supports rather than relying on a generic label.

This matters when the supplier must receive an exact sum. If £25 or €25 is deducted en route, an invoice can remain technically short even though your bank shows the payment as completed. For large commercial payments, agree with the counterparty in advance who bears bank charges and how any shortfall will be handled.

Decide who converts the currency. Compare sending pounds for the recipient bank to convert with buying the destination currency before sending. Record the quoted exchange rate, transfer fee and expected recipient amount so the business can compare options on the same basis rather than focusing on one visible fee.

Allow for cut-offs, compliance checks and intermediary deductions

A payment authorised at 10:00 on Tuesday and one released at 17:30 on Friday may follow very different timelines. Some currency routes process only on relevant business days, and the receiving country may have different holidays. Banks can also pause payments for sanctions, fraud or anti-money-laundering checks.

For a deadline such as completion of a shipment, tax payment or property-related transfer, do not use the provider’s fastest advertised time as the plan. Work backwards from the required receipt date, include the bank’s cut-off, allow for weekends and holidays in both countries and leave time to resolve a compliance query.

A one-person freelancer may be able to verify a £500 overseas software invoice personally. A company sending £150,000 to a new supplier should have stronger controls: independent beneficiary verification, dual approval, a documented invoice check and perhaps a lower first test payment if commercially appropriate. The control should rise with the loss the business could suffer.

Employee permissions also matter. A staff member who prepares overseas payments does not necessarily need authority to release them. Separating preparation and approval reduces the chance that one compromised login or one mistaken employee can send a large payment alone.

Allow for cut-off times, weekends, compliance review and possible intermediary deductions. Tell the supplier an expected range rather than promising an exact arrival time unless the payment service guarantees it. For a deadline invoice, initiate early enough to leave room for questions about purpose or source of funds.

Use approval controls and preserve the full payment trail

If the payment is delayed, obtain the provider’s reference, value date, currency, amount, beneficiary details and any trace or investigation information it can supply. If you suspect fraud, contact the provider immediately and say that explicitly; speed can matter when a transfer is still moving through the banking chain.

If the problem is a simple typo in beneficiary information, do not send a second payment until you understand the status of the first. International transfers can be returned after a delay, and duplicate settlement creates a new recovery problem. Keep the invoice, payment confirmation and correspondence together so finance staff can reconcile the final amount received and any returned funds or fees.

Do international business payments always need an IBAN?

No. IBANs are used in many countries, but not everywhere. Use the exact account information required for the destination and currency rather than forcing a UK or European format onto every payment.

Can intermediary banks deduct fees?

Yes, on some routes. Ask your provider how charges are handled and agree with the supplier who bears them when the recipient must receive an exact amount.

Does Confirmation of Payee protect every overseas transfer?

No. It is principally a UK account-name checking service. International routes and overseas beneficiary accounts can fall outside it, so independent supplier verification remains important.

Use dual approval or another proportionate control for high-value payments. Preserve the beneficiary details, approval record, payment reference, currency, fees and any bank message. If the transfer is delayed or sent incorrectly, that complete trail gives the bank what it needs to trace, amend or attempt recovery.

Sources and verification

• MoneyHelper - How to make a bank transfer
• Payment Systems Regulator - Confirmation of Payee requirements

MyBankAnswers uses official provider and UK regulatory sources wherever practical. Information is general and does not constitute financial advice.