If you're doing business with a foreign country or taking a business trip abroad, you'd better know how much your money – and their money – is worth. Keeping on top of currency values can lead to higher profits and reduced costs on business deals. And knowing where to get the best rates for currency conversion can save you a bundle.
Savvy business owners take advantage of a variety of foreign currency services that can:
1. Increase sales.
2. Improve your negotiating status.
3. Reduce costs.
4. Speed payments and collection of payments.
5. Lock in payments at the best rates.
Action Steps
The best contacts and resources to help you get it done
Use online currency converters
Online currency converters can be simple calculators or highly sophisticated tools that offer a number of features.
I recommend: The Universal Currency Converter at XE.com uses live, up-to-the-minute currency rates. The FXConverter provides exchange rates for 164 currencies and FXHistory allows you to obtain historical exchange rates. MioPlanet.com offers a currency converter you can download onto your desktop for easy access.
Pay attention to currency fluctuations
To stay on top of this game, sign up for an alert service. That way, you'll know when it's best to exchange funds.
I recommend: Rate Alert from American Express will monitor foreign currency fluctuations for you and send you an e-mail or a text message as often as you like.
Get the best exchange rates for business travel
When traveling abroad for business, it's usually best to exchange funds before you leave. Airports, hotels and other venues abroad charge high prices to convert currency.
I recommend: Several online exchange sites offer below retail rates, such as EZForEx.com, which can save you up to 20 percent compared to most foreign hotels, airports and currency kiosks.
Get the best exchange rates for frequent exchanges
If you frequently exchange currency, it's a good idea to sign up for a free account with an online foreign exchange site.
I recommend: XEtrade is an online discount foreign exchange service that can save you money when paying foreign invoices or purchasing foreign goods.
Lock in rates with foreign drafts
Foreign drafts are an excellent method for making payments when doing business abroad, allowing you to lock in exchange rates when they're most advantageous.
I recommend: Order foreign drafts for a reasonable fee from ForeignMoney.com. If you make regular payments, consider the QwikDraft service from Wells Fargo, which offers reduced fees for frequent users.
Use a full-service firm
If you're making regular payments to global suppliers and vendors, converting foreign checks into U.S. dollars or paying for foreign hotel rooms on your credit card, consider hiring a full-service firm to assist you with these tasks.
I recommend: Full-service firms, such as International Currency Express and FX International Payments from American Express, provide wire transfers for payments and foreign check collection services. View a demo of how to make an international payment at American Express.
Line up e-commerce solutions
If your Web site accepts orders from foreign countries, invest in software or online solutions that automatically localize prices on products and services.
I recommend: Oanda.com's FXP (Foreign Exchange Protocol) is used by many e-commerce sites that sell products globally and automatically converts prices in expense reports and purchase orders. GoCurrency offers a currency conversion Web tool so your site visitors can easily calculate prices into their home currency.
Tips & Tactics
Helpful advice for making the most of this Guide
* • If you're traveling, airports give the worst exchange rates – period. Instead try local banks, which use exchange rates that are close to actual currency traded values.
* • Using your credit card to pay for products and services abroad can be one of the costliest conversion methods. Visa and MasterCard generally charge a 1 percent fee on foreign transactions, and your bank may charge another 1 to 3 percent on top of that fee.
Savvy business owners take advantage of a variety of foreign currency services that can:
1. Increase sales.
2. Improve your negotiating status.
3. Reduce costs.
4. Speed payments and collection of payments.
5. Lock in payments at the best rates.
Action Steps
The best contacts and resources to help you get it done
Use online currency converters
Online currency converters can be simple calculators or highly sophisticated tools that offer a number of features.
I recommend: The Universal Currency Converter at XE.com uses live, up-to-the-minute currency rates. The FXConverter provides exchange rates for 164 currencies and FXHistory allows you to obtain historical exchange rates. MioPlanet.com offers a currency converter you can download onto your desktop for easy access.
Pay attention to currency fluctuations
To stay on top of this game, sign up for an alert service. That way, you'll know when it's best to exchange funds.
I recommend: Rate Alert from American Express will monitor foreign currency fluctuations for you and send you an e-mail or a text message as often as you like.
Get the best exchange rates for business travel
When traveling abroad for business, it's usually best to exchange funds before you leave. Airports, hotels and other venues abroad charge high prices to convert currency.
I recommend: Several online exchange sites offer below retail rates, such as EZForEx.com, which can save you up to 20 percent compared to most foreign hotels, airports and currency kiosks.
Get the best exchange rates for frequent exchanges
If you frequently exchange currency, it's a good idea to sign up for a free account with an online foreign exchange site.
I recommend: XEtrade is an online discount foreign exchange service that can save you money when paying foreign invoices or purchasing foreign goods.
Lock in rates with foreign drafts
Foreign drafts are an excellent method for making payments when doing business abroad, allowing you to lock in exchange rates when they're most advantageous.
I recommend: Order foreign drafts for a reasonable fee from ForeignMoney.com. If you make regular payments, consider the QwikDraft service from Wells Fargo, which offers reduced fees for frequent users.
Use a full-service firm
If you're making regular payments to global suppliers and vendors, converting foreign checks into U.S. dollars or paying for foreign hotel rooms on your credit card, consider hiring a full-service firm to assist you with these tasks.
I recommend: Full-service firms, such as International Currency Express and FX International Payments from American Express, provide wire transfers for payments and foreign check collection services. View a demo of how to make an international payment at American Express.
Line up e-commerce solutions
If your Web site accepts orders from foreign countries, invest in software or online solutions that automatically localize prices on products and services.
I recommend: Oanda.com's FXP (Foreign Exchange Protocol) is used by many e-commerce sites that sell products globally and automatically converts prices in expense reports and purchase orders. GoCurrency offers a currency conversion Web tool so your site visitors can easily calculate prices into their home currency.
Tips & Tactics
Helpful advice for making the most of this Guide
* • If you're traveling, airports give the worst exchange rates – period. Instead try local banks, which use exchange rates that are close to actual currency traded values.
* • Using your credit card to pay for products and services abroad can be one of the costliest conversion methods. Visa and MasterCard generally charge a 1 percent fee on foreign transactions, and your bank may charge another 1 to 3 percent on top of that fee.
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