Glossaire

An international transaction —commonly executed via international bank transfers or cross-border payments— refers to the exchange of funds, goods, or services between individuals, companies, or financial institutions located in two different countries.

For corporate finance teams and CFOs, managing international transactions efficiently is critical to protecting profit margins against high bank fees, hidden exchange rate spreads, and foreign exchange (FX) volatility.

Key Payment Methods: SEPA vs. The SWIFT Network

Depending on the destination country and currency involved, cross-border business payments are processed through two primary financial frameworks:

1. Single Euro Payments Area (SEPA)

Used for euro-denominated transfers between participating financial institutions within the SEPA zone.

Fees: Governed by EU Regulation (EC) No 924/2009, which requires banks to charge the same rates for SEPA transfers as they do for domestic transfers.

Settlement: Typically processed within 1 business day, or instantly via SEPA Instant Credit Transfer.

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2. Non-SEPA Transactions (The SWIFT Network)

For payments made outside the SEPA region or settled in non-euro currencies (such as USD, GBP, or JPY), transactions are routed through the SWIFT (Society for Worldwide Interbank Financial Telecommunication) network via correspondent banks.

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International Transfer Fee Structures: SHA, OUR, and BEN

When executing international payments outside SEPA, bank fees are allocated between the sender and the beneficiary using three standardized charging codes:

• SHA (Shared): The sender pays their own bank's charges, while the beneficiary pays receiving bank and intermediary bank fees (the default standard under EU rules).‍
• OUR (All to initiator): The sender absorbs all transfer fees, ensuring the beneficiary receives the exact invoice amount.‍
• BEN (All to beneficiary): All transaction and intermediary fees are deducted directly from the transferred amount before it reaches the recipient.

Core Challenges in Cross-Border Operations: FX Risk & Hidden Costs

Companies handling recurring volumes of international payments face two main financial risks:

• FX Rate Volatility: Currency fluctuations between the invoice date and settlement date can significantly erode projected profit margins.‍
• Exchange Rate Spreads (FX Markup): Traditional banks often apply implicit markups on currency exchange rates on top of fixed processing fees.

Automating International Transactions with Kantox

Manual processing of cross-border transfers creates operational bottlenecks for treasury teams and increases exposure to FX risk.

With Kantox's Currency Management Automation (CMA) solutions, businesses can:

• Automate international payments and transfers across 130+ currencies.
• Protect commercial margins using real-time automated hedging.
• Connect ERP and Treasury Management Systems (TMS) to streamline global bank reconciliation and eliminate manual errors.

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