Making & receiving payments
We understand that your payment processing needs may vary. That’s why we offer a simple system that can handle all payment types; domestic and international, urgent & non urgent.
Domestic and international payments can be made by:
- Wire: Electronic fund transfers, a SWIFT wire or our new locally cleared electronic payment service.
- Draft: Drafts are drawn on local correspondent banks to minimise the processing fees charged to your associates and speed up the clearing process.
Incoming currency payments
With our incoming payments service you can receive wires (Electronic Funds Transfers) or drafts. Your clients can send you funds in their native currency and our global network of banks will receive them. Upon receipt, you can then choose to convert incoming funds into sterling or hold them for up to 90 days in your Travelex account for future use.
Scheduling payments
You can retain balances in any currency of your choice for up to 90 days to fund future payments saving money because you won’t need to keep converting your overseas funds to sterling. Having one account for all your incoming and outgoing payments makes it easier to manage your cash flow and see your currency exposure.
Managing the risk from fluctuating exchange rates
Currency movements are among the least predictable factors in international business & without an effective currency management strategy. This can dramatically alter your bottom line. Our foreign exchange risk solutions can be used to help you manage your cash flow using hedging tactics making it easy to fund off-shore operations in local currency efficiently.
We offer two options for your foreign exchange transactions:
- Spot deal: is a booked transaction used to secure the prevailing exchange rate of the moment. A Travelex dealer quotes online or over the telephone and your transaction is completed immediately.
- Forward contract: is an agreement to buy or sell an amount of foreign currency locking in today’s rate, for payment up to one year in the future.
There are two types of forward contract: fixed and open.
- A fixed forward: is useful if a payment has to be settled on a particular date or if there’s a balance-sheet hedge (where the risks are reduced by translating balance-sheet assets and liabilities into foreign currencies).
- An open forward: can be used if a series of payments in the same currency are planned over the course of a year. So, if you have future payments to be made in foreign currency with no particular settlement date we have the ability to price an open forward contract comprising of two dates whereby partial or full delivery of the amount booked can be taken between the two agreed dates.
