If there’s one thing we’ve learned about handling foreign exchange for companies, it’s that no client is too big, or too small, and almost every industry has foreign payables, and/or receivables. Reach out today to learn more about what Paymentearth can do for your organization!
Services
Global Payment & FX Solutions
Fast, secure international payments and competitive currency exchange for businesses worldwide.
International Exchange Services
Who can open an FX account?
Any business registered to operate in the United States of America.
What foreign exchange payment services do you offer?
Outgoing Payments
- Spot Transactions
- Forward Contracts (Fixed-Date, Window)
- Active FX Management (For ongoing payables and treasury)
- Standing Orders
- Batch Payments
- State-of-the-Art Online Portal
Incoming Foreign Exchange Payments
- Accept incoming wire transfers to your account, or Virtuwallet
- Net payments (Receive one currency and send back out, or convert to another currency)
- Incoming foreign currencies converted with the same transparent pricing
- Hold foreign amounts in up to 28 currencies (with IBANs in your own name)
International payments made easy!
Open an account and get started or give us a call: 800-566-0915
Hedging
What does “hedging” mean in foreign exchange?
Hedging is a way to protect profit margins from potential losses due to fluctuations of the foreign currency market.
Businesses with foreign currency exposure (i.e. those making foreign payments) typically set an internal cost of goods/services based on the exchange rate at that time. When payables come due however, the market exchange rate can be drastically different from the previously set internal price.
This market-related pricing difference can leach away the business’ profit, or turn a good deal into a losing one.
What is a Forward Contract in foreign exchange?
Within the world of foreign exchange, Forward Contracts serve as client-provider agreements to “lock in” a foreign currency amount, at a specific rate of exchange (forward contract rate), for an agreed-upon window of time.
How far out do people usually buy Forward Contracts?
While there’s no standard formula for utilizing Forward Contracts, most are booked from as little as two weeks from the current date, to as far forward as 12 months.
What does a Forward Contract cost?
Forward Contacts, despite somewhat ominous sounding terminology, are relatively simple:
Cost = Foreign amount x Forward Rate of Exchange
In essence, the only difference between a Forward Contract, and a Spot payment, is that a Forward Contracts must account for the delay in delivery. This is done by adding/subtracting Forward Points to the exchange rate- these points are based on the differential between the two currencies’ interest rates.
Example: 3 month EUR Forward Contract
100K EUR x FWD RATE (1.1206) =$111,890
FWD Rate = 1.1120 + 86 Forward points (3 months)
A 5% deposit is required when the trade is booked to mitigate Paymentearth’s risk in the event of market movement against the value of the contract.
What are forward points?
Forward points are a premium, or discount charged by EVERY liquidity bank to EVERY foreign currency exchange provider. They are based on the difference in interest rates set by the central banks of each currency (Federal Reserve, European Central Bank, Bank of England, etc). Forward point curves are available via a wide variety of nationally published financial news sources.
What are the different types of Forward Contracts?
Paymentearth offers Forward Contracts in two flavors: Fixed Date and Window.
Fixed Date Forwards– buy/sell a specific amount, for a specific future date.
Window Forward– buy/sell a specific amount, for a date range (1 month, 3 months, 5 months etc) Clients can access (draw down) the funds of a Window Forward any time within their specified range.
How can I hedge currency risk with Forward Contracts?
For the following forward contract example, let’s say your company imports machinery from Italy, and you pay for a product in Euros.
Your supplier has recently shipped an order, but your invoice will not come due until the end of the quarter- nearly 3 months from now.
Simultaneously, the Federal Reserve announced a hike in interest rates, and the USD has gained 1% against the EUR!
By booking a Forward Contract now, savvy customers can lock in the favorable exchange rate for the Euro amount due at the end of the quarter, and at the same time, preserve the profit margin already factored into the sale.
What happens if the market improves after I buy the contract?
The purpose of a Forward Contract is to secure profit margins, removing clients’ exposure and potential losses as a result of market movements; Forward Contracts are not intended for speculative purposes.
If the market rate is better than the Forward Rate, at the time a contract is due, the contract remains valid, and the currency belongs to the client. Cashflow permitting, the client can always opt to buy additional currency at the current market rate, and leave the Forward Contract funds in holding, for later use.
What are Standing Orders?
Standing orders are another way of hedging foreign exchange risk by allowing you to set a target price for a specific amount. Once placed, our automated process tracks your order relative to the market rate. When/if the market hits the level you want, the currency is purchased and placed into holding, for later disbursement.
Example: Client places Standing Order of 100K EUR @ target rate of 1.1200
The Market rate fluctuates for 2 weeks between 1.1225-1.1400, before finally falling below 1.1200. When the market rate hits the target rate, the 100K EUR are automatically purchased on the client’s behalf.
Why would I place a Standing order?
Standing Orders are especially useful in a highly volatile market, when the dollar may make wide swings over a short amount of time.
Standing Orders allow clients to secure rates that might otherwise be missed during non-trading hours.
How is a standing order different from a forward contract?
A Standing Order is essentially a spot deal on autopilot. Currency is bought and paid for when the Order hits the target rate, whereas a Forward Contract is a purchase that secures the current exchange rate, but with settlement based on the terms of the Forward (1-3-6 month etc).
Forecasting
Whether bidding upcoming jobs or pricing goods and services, our expertise can guide you on market movements and market expectations, helping to secure profits and greatly reduce risk. Subscribe to our daily FX market report (free), where prospective and current clients keep up to date on the latest Forex market news. This daily report is generated by aggregating information from major news sources and industry analysts, compiled into an easy-to-read digest each morning. For more tailored market updates, simply connect with any of Paymentearth’s expert account representatives.
Batch Processing
Accounting Software Integration and Batch Processing
Whether it’s 10 payments, or 10,000, our system is a fast, simple way to automate your FX treasury needs. Our batch processing will conveniently streamline your payments to keep your business rolling along.
Custom API integrations
Our team can work with your existing accounting platform and custom-manage a solution for uploading your payments within the Paymentearth system.
Why choose to integrate your accounting platform with Paymentearth?
It’s a smarter, more efficient way to process large volumes of payments.
Does your business process a large volume of international payments?
After logging into the online portal (PE Direct), simply upload your payment file directly into the Paymentearth system! Our technology team can work with you to make sure the template is customized to your company’s needs to assure a smooth process, and turnkey solution!
The Advantage:
- Save time and potential for human error
- Pricing consistency- retain the same transparent spreads- Many banks and FX firms think automation means a way to raise the price! Don’t allow this money grab! We show you the fixed calculations on all trades and guarantee those are the spreads you’ll pay no matter how you choose to process your payments with us!
We believe in simplicity: transparent rates and state-of-the-art technology combined with actual human customer care!
Send us your file, we’ll send you back a confirmation with one U.S. Dollar total!
How do I get started?
Open an account https://paymentearth.com/open-an-account/ and request Online access.
Once logged in to the PE Direct online system, simply download the CSV template file.
Our tech team is available to help finalize and perfect the upload file and make sure everything is smoothly functioning with your accounting process!
Stay in the Know
Keep on top of your business financials with the Paymentearth Market Report
Business IBAN Account
Does your business accept and transfer payments in different currencies? Improve delivery of these funds and create instant credits for use 24/7 with your own Business IBAN Account. Paymentearth can provide your company with a business IBAN account to handle most major currencies. Send wire transfers immediately with your own business IBAN account without the hassle of converting currencies.
Virtuwallet Business IBAN Account
A Virtuwallet Business IBAN Account is a holding account that paves the way for faster transfers and instant netting with up to 28 different currencies. This Paymentearth product makes it easy for your business to receive payments from customers and suppliers, convert funds between multiple currencies, and/or hold these currencies for later payments.
Save time and money by using your Virtuwallet Business IBAN Account to reduce the need to convert to different currencies by netting invoices and avoiding fluctuating exchange rates.
Use Your Virtuwallet Business IBAN Account for Netting
Netting is the banking term that describes offsetting payables between different branches of the same company to lower the total amount of currency to be paid. For example: The CBA Company in the United States owes 100K EUR to their Headquarters in France every month. Also, the HQ in France sends a regular shipment of items to the US branch, valued at 25K EUR. The CBA Company can use Netting to lower their total payables amount (100K – 25K), and only wires the netted total of 75K EUR to the France HQ. Using Virtuwallet and your business IBAN account from Paymentearth for netting allows you to seamlessly perform fewer transactions while preventing potential losses from converting between currencies.
Use Your Virtuwallet Business IBAN Account for Trading Currencies
With Virtuwallet, you can move your funds between different currencies in real time. This facilitates making timely and potentially profitable market moves with different currencies.
Now, your business can pre-buy currencies to take advantage of premier rates and then hold these currencies for later payments when invoices become due.
Use Your Virtuwallet Business IBAN Account to Expand Your Global Reach
Paymentearth is more than just a payment processor. You can expand your business into foreign markets and increase your global reach. We offer the perfect solution for US-based companies that seek to do business with a global market. Your Virtuwallet Business IBAN Account allows you to exchange goods and services without requiring foreign vendors to convert their currencies to USD.
This allows foreign clients to avoid potential losses or difficulties with market fluctuations, making them more inclined to do business with you over your competitors! Plus, Paymentearth has actual human beings who are ready to walk you through the process of receiving non-USD payments, setting prices, and more.
How Can I Get Started with My Virtuwallet Business IBAN Account?
Setting up your Virtuwallet Business IBAN Account through Paymentearth is easy. Deposit USD and complete transactions with EUR, CHF, GBP, CAD, and more. Open an IBAN account and expand your financial possibilities today!
Eat imagine you chiefly few end ferrars compass. Be visitor females am ferrars inquiry. Latter law remark two lively thrown. Spot set they know rest its. Raptures law diverted believed jennings consider children the see. Had invited beloved carried the colonel. Occasional principles discretion it as he unpleasing.
Send Money Globally
How quickly is my FX transfer made?
Payments are delivered via SWIFT or Local networks. As a continually evolving network, SWIFT advancements allow for both Same Day and Next Day delivery. Typically, funds are released overnight to the SWIFT network, with final credit based on individual bank efficiency (i.e. a human being must still credit the wire to the appropriate account).
How do I know sending money with Paymentearth is secure?
Paymentearth is a licensed and bonded Money Transmitter, able to service customers in all 50 United States. We are regulated by the Financial Crimes Enforcement Network (FinCEN) – registration number: 31000204884332
Paymentearth is also bound by all tenets of the BSA (Bank Secrecy Act), and we follow the industry’s KYC (Know Your Client) rules and regulations, along with the requirements of OFAC (Office of Foreign Asset Control). In short, we have zero incentive to do anything other than offer a fair, transparent business model that serves our clients.
Paymentearth is governed by the same regulations as larger banking brands but offers personal customer service, a much beloved transparent pricing model, and a state-of-the-art online portal, which includes some basic accounting functions too.
What determines which wire fee I pay?
Sending a payment locally (via the SEPA network) avoids the common banking practice of intermediary banks taking small fees from your delivered funds, and local payments usually credit within 24 hours of your delivery date.
For expedited delivery, or the added surety of SWIFT receipts and/or MT103 reports, clients can send wires via SWIFT, for $8.
To send USD to Europe, it’s a flat $30 fee. No percentages, just 30 bucks.
What if I need to talk to a human being?
Not a problem at Paymentearth! Think of us as a resource! We’re experts in this industry and have decades of experience to offer in navigating the finer points of international payments. While many other “FinTech” companies are opting for automated ‘bots’, or overseas “customer care” centers, Paymentearth remains Made in the USA, with real human beings ready to answer your questions.
At Paymentearth, sending payments across the globe is quick, secure and affordable!
Open an account and get started or give us a call: 800-566-0915
FX Industries We Service
Sampling of Industries that Require Foreign Exchange Payable and Receivable Services:
At Paymentearth, we strive to offer our transparent foreign exchange pricing to a multitude of sectors. Each day, trillions (with a “T”) of Dollars are exchanged into different currencies- as the world becomes a more connected, global marketplace, it’s only natural that more money will change hands! With 50+ years of experience in international payments, chances are good that we know a thing or two about your own industry!
Here are just some of the industries that Paymentearth services:
- Food importers
- Wine importers
- Freight forwarders
- Electronics manufacturers
- Textile importers
- Machinery builders and importers
- Medical device manufacturers
- Customs brokers
- Luxury gift and apparel importers
- Unions Art Galleries
- Legal Services
Paymentearth can deliver funds to Europe through SEPA (Single Euro Payments Area), or SWIFT (Society for Worldwide Interbank Financial Telecommunication) networks.