Online FX international payments: a guide for SMEs

Your supplier in Shenzhen wants the balance payment cleared before they release your container, but your bank quotes a rate that looks nothing like the mid-market number you checked that morning, plus a SWIFT fee, plus a mystery deduction that shows up three days later when the funds finally land.

If you have been importing from China or the wider region for a while, this is not a one-off. It is a recurring line item eating into your margin every single order cycle.

Malaysia’s cross-border trade runs on payments like these, and the cost of moving money internationally is far from trivial: the World Bank’s Remittance Prices Worldwide data put the global average cost of sending money across borders at 6.36% of the amount sent in Q3 2025, with banks the most expensive channel type at nearly 15% on average.

For an established importer moving five or six figures in ringgit every month, that gap between the quoted rate and the real cost compounds fast.

This guide walks through what online FX international payments actually involve, where the hidden costs lie in a traditional bank transfer, and the practical steps to pay suppliers and receive customer payments with greater visibility into timing and cost.

Key takeaways:

• The exchange rate matters more than the advertised transfer fee: FX margins can represent a much higher cost than the flat fee shown when you initiate an international payment.
• Payment routing affects both cost and settlement time: The number of intermediaries, currencies and conversion steps involved can materially change the total cost of a cross-border payment.
• Multi-currency accounts give businesses more control over conversion: Holding foreign currencies can help avoid unnecessary or poorly timed conversions and can be particularly useful when receiving and paying in the same currency.
• For recurring international payments, compare the total landed cost rather than the headline rate: FX margin, transfer fees, intermediary deductions, settlement speed and reconciliation requirements should all be assessed together.
• Operational visibility matters as payment volume grows: Centralised balances, payment tracking and accounting integrations can reduce the administrative burden of managing multiple suppliers and currencies.
• WorldFirst can simplify recurring international payments by combining multi-currency holding, direct CNH settlement, FX tools and payment management in one account: This can be particularly relevant for businesses paying overseas suppliers, receiving foreign-currency revenue or managing several currencies at once.

Open a World Account to see live FX rates and payout options before your next supplier payment is due.

What is an online FX international payment?

An online FX international payment is a digital transfer of funds across borders that involves converting one currency into another, typically ringgit into US dollars, offshore renminbi (CNH), euros or another trade currency.

Unlike a domestic transfer, which moves within one banking system and one currency, an online FX international payments transaction usually crosses at least one currency boundary and one national payments network, which is why it costs more and takes longer than a local FPX or DuitNow transfer.

Two things are worth separating clearly:

• CNY is the onshore Chinese renminbi traded inside mainland China under capital controls;
• CNH is the offshore renminbi used for international settlement outside mainland China.

If your supplier invoices in RMB, you are almost always settling in CNH, not CNY, unless you hold a mainland Chinese bank account.

Most cross-border payments carry five potential cost layers, according to a breakdown of SWIFT fees and the true cost of cross-border payments:

• Originating bank fee: the upfront charge your own bank quotes, usually the only cost you see before sending.
• Correspondent bank deductions: intermediary banks in the SWIFT chain each take a cut, often undisclosed until the payment lands short.
• Beneficiary bank fee: a charge the receiving bank may apply before crediting your supplier.
• FX margin: the spread between the mid-market rate and the rate you’re actually given, usually the largest and least visible cost.
• Lifting charges or levies: additional network or compliance charges that can apply depending on corridor and amount.

The visible fee is usually the smallest of these five. The FX margin is usually the largest, which is exactly why two providers quoting “no transfer fee” can still produce very different landed costs for your supplier.

How traditional bank TT and SWIFT payments work (and where costs hide)

A bank telegraphic transfer, commonly called a TT, moves through several intermediaries before it reaches your supplier, and each one can add cost or delay. TT is a SWIFT-based international wire; it is a different rail entirely from domestic mechanisms like FPX or DuitNow, which only move ringgit between Malaysian banks in real time.

Read more: Telegraphic transfer vs wire transfer vs SWIFT: a guide for Malaysian importers 

Confusing the two matters because a TT to China can take one to five business days, according to Skydo’s telegraphic transfer explainer, whereas a DuitNow transfer settles domestically in seconds.

The typical SWIFT payment sequence looks like this:

1. Initiation: you instruct your bank to send a fixed sum in a foreign currency to your supplier’s account.
2. Compliance checks: the bank screens the payment against sanctions and anti-money-laundering rules, which can add a day or more if anything triggers manual review.
3. Correspondent routing: if your bank has no direct relationship with the beneficiary bank, the payment passes through one or more correspondent banks, each entitled to deduct a fee, typically £5 to £30 or the local equivalent, per Cambridge Currencies and LegalClarity’s explainer on how international bank transfers work.
4. FX conversion: somewhere in the chain, your ringgit converts into the settlement currency, at a rate set by whichever bank performs the conversion.
5. Settlement: the beneficiary bank credits your supplier, sometimes after deducting its own handling fee.

Who absorbs those correspondent fees depends on the charge-bearer code attached to the payment:

• OUR means you pay all fees, and your supplier receives the full invoiced amount;
• SHA (shared) means you pay your bank’s fee while your supplier absorbs correspondent and receiving charges;
• BEN means your supplier pays everything, per the SWIFT fee breakdown. Get the code wrong, and your supplier receives less than expected, which is an awkward conversation when you’re mid-negotiation on the next order.

This is where the fee illusion takes hold: you compare the flat RM15 to RM40 wire charge across banks and assume you’ve found the cheapest option, while the real cost sits in a 2 to 4% FX margin buried in the exchange rate.

On a RM50,000 supplier payment, a 3% margin costs roughly RM1,500, close to a hundred times the flat wire fee itself, based on the fee structure analysis from Cambridge Currencies.

How to make international payments online

You pay a supplier online by choosing a payment route, funding your account, converting at a time you control, then instructing the transfer through local rails or SWIFT. Here is the practical sequence for an established importer with recurring supplier payments.

Step 1: Choose your payment route

Decide between your existing bank’s TT service and a fintech multi-currency account. Banks offer familiarity and an existing relationship manager, but typically apply the wider 2 to 4% FX margins described above.

Specialist multi-currency providers generally quote closer to mid-market, with margins as low as 0.1 to 0.6% for major currencies, though the exact rate depends on currency pair and volume. Weigh this against your existing banking relationship and any lending or trade-finance facilities you rely on, since a payments-only provider will not replace those.

Outcome: you know which rail you’re using before your supplier’s deposit deadline, rather than defaulting to whichever bank branch is closest.

Step 2: Open and verify your account

For a fintech account, this usually means an online application with your company registration number, business address and business activity details. Approval commonly takes around two business days, without needing paperwork couriered anywhere or an overseas address.

For a bank TT, you’re usually working within an account you already hold, so this step may already be complete.

Outcome: a verified account ready to hold and send foreign currency. Troubleshooting: if verification stalls, check that your company registration details match exactly what’s on your SSM record, since mismatches are the most common cause of delay.

Step 3: Fund the account

Add ringgit from your existing bank account, or route in foreign-currency receipts directly from a marketplace or overseas customer if you also sell internationally.

Under Bank Negara Malaysia’s Foreign Exchange Policy, a resident is free to make or receive a foreign-currency payment to or from a non-resident for any purpose, with limited exceptions around FC-denominated derivatives and ringgit derivatives offered by non-residents, according to BNM’s rules on payment in FC. This means you can fund and pay in foreign currency for genuine trade without needing prior BNM approval.

Outcome: available balance in the currency you need to pay, or ringgit ready to convert.

Step 4: Convert at the right time

Check the live rate against the mid-market benchmark before converting. If you have a large payment due weeks out, a forward contract lets you lock in today’s rate for future delivery, useful if you’re worried about ringgit weakening before your balance payment is due.

A firm order lets you set a target rate and convert automatically if the market reaches it, without you watching screens all day. Some providers support forward contracts for periods of up to 24 months.

Outcome: a locked or captured rate that matches your budgeted landed cost, rather than whatever the market happens to be doing on payment day.

Caveat: forward contracts typically require a deposit or margin call arrangement, so confirm the terms before committing to a long-dated contract.

Step 5: Send the payment

Instruct the transfer to your supplier’s bank account. If you’re paying a Chinese supplier, ask whether the platform can settle directly in CNH rather than routing your ringgit through USD first.

A direct CNH payment removes one full conversion step, and one full FX margin, compared with a MYR to USD to CNH chain that many traditional bank TT routes still use.

Outcome: funds in transit, with an expected arrival window. Troubleshooting: if your supplier reports a short payment, check the charge-bearer code first: an unexpected SHA or BEN setting is the most common cause of a shortfall on arrival.

How to receive international payments in Malaysia

You receive international payments in Malaysia through a multi-currency account, a bank SWIFT transfer, a marketplace payout, or a payment gateway, and the method you choose determines how much control you keep over conversion timing.

If you also invoice overseas clients, or sell on regional marketplaces alongside your importing, this section matters as much as the paying side.

The common receiving methods, compared:

• Multi-currency account: holds incoming USD, CNH, GBP or other currencies without forcing an immediate conversion to ringgit, so you convert when the rate suits you rather than the moment funds land.
• Bank SWIFT transfer: the traditional route, generally slower and often converts to ringgit automatically at the bank’s quoted rate, per Airwallex’s guide to receiving money internationally.
• Marketplace or platform payout: funds collected from Amazon, Shopee, Shopify or similar platforms settle into a connected account, sometimes in the original currency, sometimes pre-converted depending on the platform’s own settlement terms.
• Payment gateway: services like Stripe route customer payments into a merchant account, typically with their own conversion and settlement schedule.
• Digital wallet or cash pickup: useful for smaller or one-off receipts, though less practical for recurring B2B trade volumes.

Wise’s guide on receiving money in Malaysia makes the same core point: receiving in the original foreign currency, rather than accepting automatic conversion, gives you the option to hold funds and convert when the rate is favourable, or when you need to pay a supplier in that same currency and can skip converting twice.

For an established importer who also has some export or marketplace revenue, a multi-currency account that holds 20-plus currencies, including MYR, SGD, USD, CNH, EUR, GBP and AUD, and connects to 130-plus marketplaces, means incoming customer payments and outgoing supplier payments can sit in the same platform, reducing how often you need to convert at all.

Figures checked against published WorldFirst Malaysia and Cambridge Currencies sources as of the article’s publication date; confirm current rates and fees on the relevant provider page before relying on them for a live payment decision.

How WorldFirst’s World Account addresses common international payment frictions

For businesses making regular international payments, the biggest costs are often not the headline transfer fee but the FX margin, intermediary deductions, unnecessary currency conversions and operational complexity.

WorldFirst’s World Account is designed around those issues. It quotes FX margins of up to 0.6% above mid-market on major currencies, with payment fees from as low as RM5 for smaller transfers.

Around 80% of payments settle the same day, and the account supports 92 payout currencies. For businesses paying suppliers in China, WorldFirst also supports direct CNH settlement and payments to 1688.com suppliers, which can avoid payment routes that convert MYR to USD before converting again to CNH.

On the receiving side, businesses can hold 20-plus currencies and connect to 130-plus marketplaces, including Amazon, Shopee, Shopify and TikTok Shop. Malaysian-registered businesses can also open a MYR account and receive domestic payments through GIRO, DuitNow or RTGS.

A worked example

Consider a Penang importer placing a US$40,000 order with a Shenzhen supplier, with a US$12,000 deposit and US$28,000 balance due in CNH.

If the bank payment route converts MYR → USD → CNH, the transaction may involve two FX conversions plus intermediary charges. A direct CNH route removes one conversion step, making it easier to compare the actual FX margin, fees and amount expected to reach the supplier.

The exact saving depends on the live rate and pricing available at the time, so the most useful comparison is to request quotes from WorldFirst and the business’s existing bank for the same payment amount, currency and beneficiary.

For businesses managing future FX exposure, WorldFirst offers forward contracts for up to 24 months, firm orders and rate alerts. The platform also supports batch payments of up to 200 transactions, connects with accounting systems including Xero and NetSuite, and offers the World Card for business spending from supported currency balances.

The account is free to open, with no ongoing account fee or minimum balance, although WorldFirst is not a full-service bank. Businesses that need lending, overdrafts or trade-finance facilities may therefore continue using a traditional bank alongside it.

For a Malaysian SME, testing WorldFirst against a real upcoming supplier payment is therefore more useful than comparing headline pricing in isolation.

Open a World Account to review current FX rates and payout options before your next supplier payment.

FAQs

1. What is an international FX payment?

An international FX payment is a cross-border transfer where one currency is converted into another before the recipient is paid. The total cost can include the exchange-rate margin, transfer fees, intermediary-bank charges and receiving-bank fees.

2. What is the cheapest way to make international business payments?

The cheapest option depends on the currency pair, payment route and amount. Businesses should compare the total cost of the payment, including the FX margin and intermediary fees, rather than choosing a provider based only on the advertised transfer fee.

3. How long do international business payments take?

Traditional SWIFT transfers can take several business days because payments may pass through correspondent banks before reaching the recipient. Some specialist payment providers can settle certain currency corridors faster, depending on the destination and payment rail.

4. Can Malaysian businesses hold and pay in foreign currencies?

Yes. Malaysian businesses can generally receive and make foreign-currency payments for legitimate trade purposes, subject to Bank Negara Malaysia’s Foreign Exchange Policy and any applicable restrictions.

5. What is the difference between CNY and CNH when paying Chinese suppliers?

CNY refers to renminbi traded within mainland China, while CNH refers to offshore renminbi used internationally. Businesses paying Chinese suppliers from outside mainland China will commonly encounter CNH for cross-border settlement.

6. How can businesses reduce FX costs on international payments?

Businesses can reduce FX costs by comparing rates against the mid-market rate, avoiding unnecessary currency conversions, holding foreign-currency balances where appropriate, and reviewing the full payment cost before sending funds.

Disclaimer:

This article is intended for general informational purposes only and does not constitute legal or professional advice. WorldFirst makes no representations or warranties regarding the accuracy, completeness or applicability of the content and readers are encouraged to consult with legal professionals or other professionals for advice tailored to their specific situation. WorldFirst does not guarantee the accuracy and completeness of this article and expressly disclaims any and all liability to any person in respect of the consequences of anything done or omitted to be done wholly or partly in reliance on this article.

Sources:

1. https://cambridgecurrencies.com/international-money-transfer-fees/
2. https://rzifi.com/blog/swift-fees-fx-and-the-true-cost-of-cross-border/
3. https://legalclarity.org/how-do-international-bank-transfers-work-swift-fees/
4. https://www.skydo.com/blog/telegraphic-transfer
5. https://corpwb01.bnm.gov.my/fep/policies/rules-by-residency/resident/payment-in-fc
6. https://www.airwallex.com/en-my/blog/how-to-receive-money-internationally
7. https://wise.com/my/blog/receive-money-overseas-malaysia