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FX Payments Online – Part Two April 2, 2007

Posted by liverpoolchamber in Custom House.

New advances in foreign exchange technology are enabling companies to make multiple payments in various currencies using a variety of payment methods. Doing business internationally has never been so easy and inexpensive. The world’s largest non-bank foreign exchange specialists are leading the way in this new paradigm. This week we look at another two cutting edge developments that can save you time, money and headaches.

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Domestic Vs Foreign Payments

To be fair to the banks, they have great domestic payment platforms for flow through processing or straight through processing. This means that information does not have to be re-keyed each and every time a domestic transaction goes through. Let’s say, for example, you are a UK company and you’ve got UK invoices to pay. The banks handle this domestic processing with ease by uploading from your accounts payable to their platform for straight through processing.

Where most of them have a deficiency, however, is when it comes to doing online foreign payments where you need to upload multiple payments in multiple currencies in multiple payment forms such as a wire or an EFT (electronic funds transfer).

“The banks, for the most part, do not have that functionality and that is where specialists add value,” according to Peter Gustavson, chief executive officer of Custom House. “The upload functionality that cost so much to write enables uploading in, say, 30 different currencies that can then all be processed in one fell swoop – and with the added option of how you want to deliver it.”

In the case of Custom House, 85 percent of its business in the United States is handled this way. The same is true for 70 percent of business in Australia and 85 percent of business in New Zealand.

Exotic Currencies

This is a profound competitive advantage for companies that need to make many payments in multiple currencies such as Kiwi dollars, US dollars, the yen, the ringgit, Singapore dollars or pounds.

In the United States where there are thousands of banks, many of them do not have sufficient foreign exchange business to justify setting up a foreign exchange department. So, they sub-contract all of that out. Not too long ago, that meant going to a competitor and potentially losing a customer.

Today, foreign exchange specialists white label their multiple payment platforms to these banks and, because they are focused only on foreign exchange, they pose no competitive threat. Every day banks and credit unions in the US and Canada refer business to foreign exchange specialists because of their online systems.

In many cases, the foreign exchange service offered by your bank is actually provided by specialist foreign exchange companies through white labeling.

Dealing directly with a foreign exchange specialist for online payments, multiple payments in multiple currencies and error-free straight through processing will save you time, money and a great deal of unnecessary inconvenience.

To find out more on how you could benefit from Custom Houses online platform for businesses contact Mersey based Ian Meyer – Mobile 07932.024893  imeyer@customhouse.com

Business Leaders and Fortune 500 companies worldwide trust Custom House with its secure, award winning foreign exchange services. Over 50,000 clients transact more than US $15 Billion annually on-line and through the Custom House network of trading offices in United Kingdom, United States, Canada, Italy, New Zealand, Australia and Singapore.


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