What Are the Cross-Border Transaction Charges?

There are many charges associated with cross border money transfers, such as:

• Bank fees. Typically, the most costly part of the transfer, charged for transactional services.

• Cross-border fees. What is a cross border fee? It’s a percentage applicable to a consumer’s purchase performed with a foreign credit card. The rate varies depending on the card issuer. For instance, an MC cross border fee equals 0.60% of a transaction settled in USD, while PayPal charges 4.6% + $0.30.

• Taxes. This expense category varies from one transaction to another, as country-specific taxes apply.

• Exchange rates. Since we are dealing with international transfers, we should not disregard currency differences and the exchange rates flux.

However, the members of SEPA are exempt from most of these charges - more about it below.

How Does SEPA Affect Cross-Border Payments?

SEPA, or the Single Euro Payments Area, is a pan-Europan initiative aiming to simplify Euro currency cross-border bank transfers within the eurozone (36 member states). It was first introduced in 2008 for credit transfers only, followed by direct debits in 2009. SEPA came into full force in 2016.

SEPA makes cross-border transfers as simple as local ones and even has similar rates. In other words, SEPA transactions are typically free. Yet, some banks may choose to charge an extra fee if they also perform local transfers at a cost.

Luckily for businesses, there are also all-in-one tech solutions that enable convenient management of all the steps and fees of cross-border transactions.

Cross-Border Transactions with Agathis

We work with banks, platform providers, PSPs, and merchants worldwide to provide custom payment solutions for conducting cross-border transactions seamlessly.

We offer:

• Full support for e-commerce, m-commerce, and alternative payment methods.

• Support for P2P transfers: cards, e-wallets, and more.

• Set of APIs suitable for different payment types.

• Conversion tools and multi-currency support.

At Agathis, we ensure a cost-effective transaction flow and top security for the efficiency of your business.

Since 2019, we have been providing our clients with an opportunity to perform cross-border money transfers easy and at low costs.

With the help of our service, any business linked to the Agathis platform will provide its clients with stress-free access to international money transfers.