Four Advantages an Online International Payments Platform Gives Your Business

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1 U.S. Version U.S. Version U.S. Version Four Advantages an Online International Payments Platform Gives Your Business The Challenges and Trends in International Payments International payments can, at fi rst, appear daunting. It s an unpredictable market, with profound consequences to your bottom line. Traditional processes are mired in paperwork, with the potential to go awry and manufacture confusion, anxiety, and additional fees. From country to country, settlement systems and required information differ, making operations and compliance challenging and time-consuming. If a payment is sent missing correct information for its method of transmission, a business will incur additional fees and delays in settlement. Many of the largest companies in the world have their own trading departments handling foreign exchange. Can your business afford to hire traders of its own and set-up the necessary relationships with overseas banks? If not, then attempting to handle foreign exchange in-house is likely a thankless, counterproductive endeavor that will only distract from core business. Page 1 of 6 l Online Payment Platforms

2 Real-time exchange rates allow you to know your exact costs before initiating a transaction, ensuring cost certainty for more accurate business projections. The Solution: A Full Service Online FX Platform Fortunately, improvements in payment technology have resulted in an exceptionally affordable way to avoid the headaches, without changing current company operations. Utilizing an online payment system for international payments offers: Faster payments Sharply reduced occurrences of payment error; automated routines help ensure quality Transparency of cost and status of payments 24/7 accessibility 24/7 monitoring of the market, ready to leap into action if a desired rate is achieved overnight Easy integration into your existing accounting software None of this is to say that you should solely handle all of your foreign exchange needs online. There are times when you need to consult with experts. Structuring a sound hedging strategy to protect your business against market fl uctuations is a perfect example of when it helps to have an expert to present a plan for you or at least offering a sounding board for your own plan. The Four Advantages of an Online Platform for Foreign Exchange #1: Speed and accuracy of all foreign currency payments Late/slow, inaccurate, and even misdirected: These words can often describe international payments made offl ine. Payments initiated on an online system are far less likely to experience these issues. Why? Quality checks can ensure accuracy and completeness of the necessary transaction information, there by ensuring there are no delays or extra fees due to errors. Benefi ciary details can also be stored, allowing faster entry of recurring international payments. The storage of these details also assists with the necessary compliance and regulation requirements. Settlement and reconciliation times improve. Why? Because details such as invoice number, purchase order number and additional notes are also transmitted with the payment, eliminating questions from confused benefi ciaries. #2: Transparency about cost and status of payment With rates changing every few seconds, controlling foreign exchange may seem like holding a tiger by its tail. But you can do it, and online payment systems can be your ally. Real-time exchange rates allow you to know your exact costs before initiating a transaction, ensuring cost certainty for more accurate business projections. With all data for international payments in one place, you have centralized transparency. The data can also be easily transferred to your company s accounting software in the fi le format of your choice. Page 2 of 6 l Online Payment Platforms

3 An online platform is available 24 hours a day, seven days a week, to allow your business to make payments regardless of location or time zone. Detailed data is captured, allowing you to confi rm payments and accurately match payments to invoices. The detailed reports are available in real-time, allowing for tracking of trends in payments, reducing transaction costs and improving management of working capital. #3: Easy compliance and integration with current practices and technology Sending payments through an online platform ensures that your business is always compliant with the necessary regulations. Manually maintaining accurate information for all countries and currencies is a beastly, time-consuming task. But, with an online platform, the process is nearly effortless. Role-based permission levels allow for dual signatures, which permits accounts payable staff to enter payment information for approval by a supervisor or controller. Customized permission and access levels for each and every type of user that you have ensures that your company s designated representatives maintain control over payments. This also ensures that internal security controls are maintained though these tailored permission levels. A platform can be set up and tailored to your company s existing operations. Don t struggle with software that forces your company to deal with processes that cost it time and money. Transmission of more data available with electronic transactions ensures that payments arrive at the intended benefi ciary free of errors. Reducing errors in transmitted data reduces required repair fees for inaccurate information and improves settlement times. #4: Accessible and Working for You 24/7 Have you ever checked the news in the morning to fi nd a headline such as, European currencies battered overnight? The foreign exchange market operates 24 hours a day, six days a week, meaning that your business is exposed to both opportunities and risks during and after business hours. Using an online payments platform won t ensure that you re always trading at the most favorable possible exchange rate, but it will give you that much more access to checking rates and booking trades at hours that most traditional fi nancial institutions won t allow for. Further, most dedicated foreign exchange providers will also offer some form of rate bid (also called a limit order), which allows you to set your desired rate in advance and have your trade processed immediately once it becomes available. An online platform is available 24 hours a day, seven days a week, to allow your business to make payments regardless of location or time zone. Many payment methods can be initiated and approved through an online platform without having to make a trip to the bank. Benefi t from the dedicated banking relationships held by your provider and make and receive international payments without having to hold unnecessary foreign currency accounts simply use your existing domestic currency accounts. Page 3 of 6 l Online Payment Platforms

4 With the support of a dedicated foreign exchange specialist, you can rest assured that you re making informed, intelligent trading decisions. What to look for in a Full Service Online FX Platform When assessing the services of an online payments platform, review your options carefully, and make certain that they meet your business needs. The 8 Point Checklist of What to Look for in an FX Provider 1) 24/7 Accessibility Ensure that urgent, last-minute payments never have to wait until the next day: Find a system with 24/7 accessibility. 2) Comprehensive Reports Do you know what costs almost nothing? Making transaction data (which is already required to be archived in a database) available for clients. So, why do many banks only provide less than a year of transaction history in your reports, with sometimes as little as two months? We do not know. You never know when a request to access old payment information will come from left fi eld. Look for a system that can accommodate your every reporting need, from the simple and routine to the unexpected and strange. Be ready for a fi nancial audit with a system that offers you fl exibility. 3) Compliance Ensure that the provider accommodates all compliance regulations. The best online platform providers will handle all legal information required for payment transfers and background checks for all payment benefi ciaries, ensuring the necessary information is available for audits. 4) Real-Time Quotes Ensure that any online platform you consider has real-time rate quotes for the currency pairs your business needs. Ensuring that you have up-to-the-second rates helps you to avoid unpleasant surprises. 5) Easy and Free Integration Set-up and integration should be easy and quick to get your company up and running as fast as possible. Make certain that the online platform your company chooses allows for data uploads to (and downloads from) your existing software. This service should be available without fees. 6) Customized Permission Levels for Employees With an online payments platform, you should have the ability to designate role-based permission levels for accounts payable or fi nance staff. Ensure payment accuracy and avoid fraud by having employees enter payments and designated employees approve payments before booking. Page 4 of 6 l Online Payment Platforms

5 7) Secure Information Retention for Future and Recurring Use Ensure that any online provider for your international payment needs has a platform that securely stores benefi ciary and relevant fi nancial information for fast and easy recurring or multiple payments. 8) Support When You Need It Finally, an online system is not a panacea to cure all ills there will be times when you need to strategize with the help of an actual human being. Getting in touch with this actual human being should not send you offshore, nor require multiple phone transfers. It should be easy to get in touch with a true foreign exchange expert who can help you with repatriation, forwards planning, getting the best rates, or anything your international payments needs require. Bring your International Payments Online When used alongside traditional banking services, online international payment platforms and informed advice from a dedicated FX provider can help your business reduce costs, simplify payment processes, and develop better relationships with your international partners. With easy online access to a solution specifi cally designed to handle your foreign currency payments, you can eliminate much of the hassle and costs associated with doing business across borders and currencies. And with the support of a dedicated foreign exchange specialist, you can rest assured that you re making informed, intelligent trading decisions. To learn more, or for an online demo of online platform, please visit: Page 5 of 6 l Online Payment Platforms

6 Tel: I Fax: solutions@ About Western Union Business Solutions is a global leader in foreign exchange and a trusted payments provider to clients operating in international markets. With a robust fi nancial network spanning more than 190 countries and access to over 140 currencies, we empower our clients with simple and reliable cross-border payment solutions. Our distinguished service portfolio and deep industry expertise, enables clients to operate across borders and currencies in fast, reliable and convenient ways. Through our account-to-account payment platform, international payment tools, currency risk management solutions, and fi nancial service partnerships, we help clients improve cash fl ow, manage currency risk and seize global market opportunities. Regional Offices Atlanta 3000 Mill Creek Avenue. Suite 450, Alpharetta, GA Tel: Montvale 100 Summit Ave Montvale, NJ Tel: Global Offices United States Custom House (USA) Ltd. Tel: Fax: Canada Custom House ULC 517 Fort St. Victoria, BC V8W 1E7 Canada Tel: Fax: business.westernunion.ca Australia Custom House Currency Exchange (Australia) Pty. Limited Level 13, 130 Pitt Street, Sydney, NSW 2000 Tel: Toll Free: Fax: au Australian Financial Services Licence No: ABN: United Kingdom Custom House Financial (UK) Limited Company Number Registered Offi ce Address: 2nd Floor, 12 Appold Street London, EC2A 2AW Registered in England Tel: Fax: business.westernunion.co.uk Custom House (USA) Ltd. is owned by the Canadian registered company Custom House ULC. Custom House Currency Exchange (Australia) Pty. Limited is owned by the Canadian registered company Custom House ULC. Custom House Financial (UK) Limited is owned by the Canadian registered company Custom House ULC. This report in whole or in part may not be duplicated, reproduced, stored in a retrieval system or retransmitted without prior written permission of Custom House ULC. Custom House has based the opinions expressed herein on information generally available to the public. Custom House makes no warranty concerning the accuracy of this information and specifi cally disclaims any liability whatsoever for any loss arising from trading decisions based on the opinions expressed and information contained herein. Such information and opinions are for general information only and are not intended to present advice with respect to matters reviewed and commented upon. This report is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject Custom House ULC or its affi liates to any registration or licensing requirement within such jurisdiction. All material presented herein, unless specifi cally indicated otherwise, is under copyright to Custom House ULC Western Union Holdings, Inc., All Rights Reserved.