Irish SMEs are trading globally like never before. CSO data shows that Irish exports hit a record €260.3 billion in 2025, while imports reached US$160.6 billion , much of it sourced from Asia, the Americas and beyond. For SMEs, this expanding global footprint means one thing is becoming a routine operational necessity: making payments to overseas vendors in foreign currency.
Yet despite the scale and frequency of these transactions, many Irish SMEs are still relying on their high street bank to handle cross-border vendor payments — and it’s costing them more than they realise.
This guide looks at the most practical ways to pay overseas vendors, what banking details you need, and why more and more ISME members are switching to specialist payment providers to protect their margins.
How SMEs typically pay overseas vendors
The right method depends on your transaction volume, the currencies involved, and how frequently you pay. Here’s a quick breakdown of the most common approaches:
Traditional Bank Transfers
The default for many businesses but rarely the best value. Irish banks typically charge €15–€50 per transfer and apply a 2–4% mark-up on exchange rates. For an SME making regular vendor payments, that’s a significant and largely avoidable cost. Lack of fee transparency also makes it harder to forecast cash flow accurately.
Card Payments
Useful for smaller, urgent purchases, card payments are widely accepted but expensive for ongoing vendor relationships. They’re not designed for high-volume, recurring B2B transactions.
Virtual Cards
A practical option for one-off online purchases or low-value invoices. However, virtual cards carry payment limits, are often refused for larger invoices, and can come with poor FX rates — making them unsuitable for scaling your vendor payments.
Digital Wallets (PayPal, Skrill, etc.)
Quick to set up and fine for occasional, smaller cross-border payments. That said, not all overseas vendors accept them, and receiving fees on the supplier side can reduce what actually lands in their account — creating friction in your vendor relationships.
What Bank Details Do You Need to Pay an Overseas Vendor?
Getting the banking details right is essential — even a small error can delay a payment, incur additional charges, or result in funds being returned. As a rule, you’ll need:
• Supplier’s bank name
• Account name
• Bank account number or IBAN
• SWIFT/BIC code
Some markets require additional routing information specific to that country. A specialist payments partner can verify these details upfront, reducing the risk of delays or rejected transactions.
Why SMEs Are Moving Away from Their Bank for Vendor Payments
The traditional banking model simply wasn’t built for the volume and variety of cross-border payments that modern Irish SMEs require. Here’s what’s driving the switch
- Cost savings: Specialist providers offer significantly better exchange rates and lower fees than high street banks — a critical consideration when margins are already under pressure.
- Speed: Same-day and next-day settlement on many currency routes means your vendors are paid faster, strengthening relationships and avoiding supply disruptions
- Transparency: Clear, upfront pricing helps you plan cash flow more accurately — no surprises on your bank statement.
- Exotic currency access: As more SMEs source from Asian and emerging markets, access to a wider range of currencies beyond the major pairs is increasingly important. For context, imports from Asia to Ireland grew from approximately €6.5 billion in 2010 to over €27 billion by 2023.
- Local currency payments: Paying your overseas vendor in their local currency removes FX friction, speeds up settlement, and can lead to better pricing and stronger supplier terms.
- API integration: For businesses processing multiple vendor payments, straight-through processing via API reduces manual admin and minimises errors, a real benefit for lean finance teams.
- Human support: When something goes wrong, businesess dealing with a specialist provider get a dedicated account manager not a chatbot. That personal service matters when you’re dealing with time-sensitive payments.
Fexco International Payments — Trusted Partner for ISME Members
Headquartered in Killorglin, Co. Kerry, Fexco International Payments has been helping SMEs, corporates and private clients manage foreign currency payments for over 30 years.
As an ISME member, you can access exclusive rates and a service designed specifically around the needs of Irish businesses paying overseas vendors. Key benefits include:
• Competitive exchange rates and ZERO FEES on FX payments
• Payments to almost 200 countries in 165+ currencies
• Same-day and next-day settlement on many routes
• Dedicated account management — a real person, not a bot
• Transparent pricing with no hidden charges
• Bulk payment processing and API integration
• Forward contracts to lock in exchange rates and protect against currency volatility
• Secure payments platform with two-factor authentication and segregation of duties
Time to Review What You’re Paying?
If your business makes regular payments to overseas vendors, the chances are your current bank is costing you more than it should. Even a modest improvement in your exchange rate can add up to meaningful savings over a year.
For a no-obligation consultation on how Fexco can help ISME members reduce costs on foreign vendor payments, contact John Barry at jobarry@fexco.com or visit the Fexco contact page here to outline your requirements
