Five International Payment Problems That Entrepreneurs Need Solutions

Five International Payment Problems That Entrepreneurs Need Solutions
Rohit22 December 2023

Despite the efforts of business owners to manage their finances, they face various international payments-related problems, such as late payments, non-payment, fraudulent transactions, and fluctuating currency rates. These issues significantly impact a business's cash flow, profitability, and general operations.

Moreover, banks impose significant fees for payment-related services, including transaction, currency conversion, and processing fees. A study by Forrester found that companies lose an average of 2% of their revenue to payment processing fees. 

Let’s drill down five major payment problems that business owners frequently encounter.

Five Major Payment Problems That Business Owners Frequently Encounter

#1: Complicated processes and high fees of banks

Banks are vital for financing, foreign exchange transactions, and international payments. However, their products and services are often not tailored to specific business needs, resulting in high fees, poor experience, and cumbersome processes. 

Navigating the banking world can feel like a game of Minesweeper, where a wrong move could result in an explosion of high fees and cash flow difficulties. For instance, if you choose a bank with high foreign transaction fees, you could lose more money every time you transfer funds. 

Choosing between a standard checking account and an EEFC account can be further challenging. An EEFC account allows foreign currency transactions, while a standard one allows local currency transactions exclusively. Different banks have distinct requirements for opening and maintaining an EEFC account. Choosing the right account type can help manage cash flows efficiently and minimise foreign exchange risks.

#2: Inefficient and expensive payment systems such as PayPal and Stripe

PayPal and Stripe are popular payment systems used for international payments. However, these payment systems have high transaction fees, conversion charges, and regulatory issues that may affect your profit. Additionally, they take longer to provide the FIRA document, which is proof of payment for foreign transactions.

Freelancer.com faced financial difficulties in 2018 when PayPal froze $380,000 of its funds due to restrictions on certain transactions and compliance with anti-money laundering regulations. Freelancer.com had to explore alternative payment methods to continue its global operations and mitigate the risks of relying solely on PayPal for its transactions.

Similarly, in December 2020, Patreon faced a backlash from the community when they passed on new fees from Stripe to their creators. The new fees included additional fees for international and European transactions, resulting in higher transaction costs for Patreon creators and impacting their earnings.

Paypal vs Stripe

Comparison of PayPal and Stripe as payment systems–


  • Widely recognised and accepted, with a large user base
  • Multi-currency support and strong fraud protection measures
  • High transaction fees and currency conversion fees for cross-border transactions
  • Risk of account holds or frozen funds
  • Limited customisation options


  • Fast and secure payment processing with robust fraud protection measures
  • Support for over 135 currencies and payment methods
  • Transparent pricing with no hidden fees
  • Limited support for some countries and regions
  • Limited customisation options
Save 50% on every international transfer
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