Save money on international business payments

If you’re an importer paying a China supplier every month, you already know the invoice total isn’t what actually leaves your account.

Between the transfer fee your bank quotes upfront, the exchange rate you don’t get to negotiate, and the mystery deduction your supplier flags when the payment lands short, a single recurring payment can quietly cost hundreds of ringgit more than it should.

The scale of what’s moving through these rails is significant. Cross-border payments are projected to reach US$320 trillion by 2032, up from US$195 trillion in 2024. That growth has pulled in more providers competing on price, which means the gap between what you’re paying now and what you could be paying is often wider than most importers assume.

This article breaks down where the hidden costs sit in a typical international business payment, how Malaysian bank transfer fees compare, and what practical steps you can take to save money on international business payments.

Key takeaways:

• International payment costs go beyond the visible transfer fee: The total cost can include the transfer fee, the FX markup built into the exchange rate, and correspondent bank deductions along the payment route
• The FX margin is often the highest cost to reduce: Comparing the actual rate you receive against the mid-market rate can reveal savings that are much larger than simply choosing a provider with a lower flat transfer fee
• Holding foreign currencies can prevent unnecessary double conversion: If you collect and pay in currencies such as USD or CNH, keeping those balances instead of converting back to MYR each time can reduce repeated FX charges
• Local payment rails and batching can lower costs and improve efficiency: Using local networks where available can reduce intermediary deductions, while consolidating recurring payments helps cut fixed fees and reconciliation work
• WorldFirst can help Malaysian businesses control all three cost layers: The World Account supports 20+ currencies, transparent FX pricing of up to 0.6% on major currencies, payments to 210+ countries and territories, and no monthly account fee, helping businesses reduce unnecessary conversion and transfer costs

Open a World Account to compare transparent FX rates and local payment routes before your next transaction.

The three hidden costs of international business payments

Every international payment you send carries three cost layers, and only one of them is visible on the confirmation screen. Understanding all three is the first step to saving money on international business payments rather than just negotiating the one fee your bank shows you. They are:

• The transfer fee: This is the flat charge your bank quotes for processing the transaction. It’s the easiest to compare because it’s disclosed upfront.
• The FX markup: It is the margin built into the exchange rate you’re given versus the interbank mid-market rate. This is usually the highest cost and the hardest to spot because it’s folded into a number that looks like ‘the rate,’ not a separate charge.
• The correspondent bank deductions: These are fees taken by banks along the SWIFT route between your bank and your supplier’s bank, which can arrive as a shortfall your supplier reports rather than a charge you see coming.

Put together, the total cost of a telegraphic transfer includes handling commission, plus cable fee, plus the transfer amount multiplied by the FX margin percentage, plus any correspondent deductions taken en route.

Read more: Best foreign currency accounts in Malaysia

How to save money on international business payments: 5 practical steps

Cutting the cost of your recurring supplier payments comes down to controlling the three cost layers above rather than hunting for a single cheaper fee. These five steps address each layer directly:

• Reduce the FX margin, not just the fee: Compare providers on the actual exchange rate you receive against the interbank mid-market rate, not just the advertised transfer charge, since the margin is usually the higher cost.
• Hold foreign currency balances to avoid double conversion: If you collect USD or CNH revenue and separately convert MYR to pay suppliers, you’re paying two FX margins on money that could stay in the same currency throughout.
• Use local payment networks instead of SWIFT where available: Local routing avoids some correspondent bank deductions and settles faster, which matters when a supplier holds shipment until funds clear.
• Batch recurring payments to reduce per-transaction overhead: Consolidating multiple invoices into fewer transfers cuts the fixed cost per payment and reduces the reconciliation workload on your side.
• Track and reconcile all costs from one dashboard: Visibility into what you actually paid, versus what was quoted, is the only way to catch creeping FX margin or unexpected deductions before they become a pattern.

If your business converts MYR to USD at the bank rate every time you pay a supplier, and separately converts incoming USD revenue back to MYR, you’re paying two FX margins on two conversions that could have been avoided.

A multi-currency account solves this issue, as it lets you hold USD from collected revenue and pay USD suppliers directly from that balance, removing the round-trip entirely.

Payment methods compared for Malaysian importers

The right payment method depends on the scenario. SWIFT bank transfers, international cards, digital wallets and multi-currency accounts each fit different recurring payment patterns.

Read more: How to find & pay suppliers on 1688.com

Checklist: what to compare before your next international payment

Before you send your next supplier payment, run it against this checklist:

• FX margin transparency: Does the provider show you the rate against the mid-market benchmark before you confirm, or only after the payment has gone through?
• Transfer fee structure: Is the fee flat, percentage-based, or tiered by transfer amount, and does that match the size of payments you typically send?
• Intermediary deduction risk: Does the payment route through multiple correspondent banks, or does it use a local network that reduces the number of hands it passes through?
• Settlement speed: Does the timeline match your supplier’s shipment or production release terms, so you’re not paying a premium for speed you don’t need or risking delay you can’t afford?
• Currency support: Can you hold and pay from the currencies your suppliers actually invoice in, including CNH if you’re sourcing from China?
• Reconciliation tools: Does the platform integrate with your accounting software, so tracking what you actually paid doesn’t become a manual exercise every month?

How the World Account helps Malaysian importers save

World Account is built specifically to address the three cost layers above: It’s free to open, with no setup fees, no monthly fees and no minimum balance requirement.

You can hold balances in 20+ currencies, including MYR, USD, GBP, EUR and CNH, and send payments in 100+ currencies to over 210 countries and territories.

SWIFT transfer fees start as low as RM5 based on a 0.5% payment fee structure, best suited to transfers below RM6,000, while payment fees generally run up to 0.8% and currency conversions up to 0.6%, varying by region.

Also, the FX margin on major currencies is capped at 0.6%, and rates are shown before you confirm a payment, so there’s no guessing what you’ll actually pay. Payments between World Account holders are free and instant.

A practical example:

On a payment where a bank applies a 2% FX margin plus a flat cable and handling fee, moving to a provider with a 0.6% FX margin and no cable fee removes both the larger conversion cost and the fixed transaction charge.

On a RM50,000 payment, for example, the difference between a 2% and a 0.6% FX margin alone is roughly RM700, before accounting for cable or handling fees on the bank side.

The exact saving depends on your bank’s specific fee schedule and the currency pair, so it’s worth calculating against your own recent transfer confirmations rather than assuming a fixed figure.

WorldFirst isn’t a bank. It’s a regulated payments provider, and its Malaysia operations are served through WorldFirst (Singapore) Merchant Services Pte. Ltd., licensed by the Monetary Authority of Singapore under the Payment Services Act 2019, with client funds safeguarded through tier-1 partnering banks.

Open a World Account to see live FX rates and transfer costs before you send your next supplier payment.

FAQs

1. What is the cheapest way to make international payments?

The lowest overall cost typically comes from a multi-currency account with a transparent, capped FX margin, where you hold the supplier’s currency and pay directly from that balance. This avoids both the bank’s FX markup and the double conversion cost of converting MYR to a foreign currency and back again.

2. Which payment method is best for international transactions?

There’s no single best method; it depends on the payment scenario:

• SWIFT bank transfers remain necessary when a supplier only accepts wire payments.
• International cards suit smaller, recurring charges like SaaS subscriptions or ad spend.
• Multi-currency accounts are best suited to recurring supplier payments across multiple currencies, since they let you hold balances and avoid double conversion on repeat transactions.

3. How do I avoid bank charges on international transfers?

You can reduce, though not always fully avoid, bank charges by using a provider that discloses the FX rate before you confirm a payment, routes through local payment networks instead of the full SWIFT correspondent chain where possible, and lets you hold foreign currency balances so you’re not converting MYR on every single payment.

Comparing the all-in cost, transfer fee plus FX margin plus any intermediary deduction risk, against your current bank’s published fee schedule is the most reliable way to spot where charges are adding up unnecessarily.

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. Maybank, Foreign Telegraphic Transfer fees
2. CIMB, Foreign Telegraphic Transfer fees and charges
3. Grow Across, International business payments insights
4. Send Money Compare, Business international transfers
5. FXC Intelligence, Cross-border payments market forecast