04:05 GLOBAL
intermediary banks incur higher fees than direct transfers to a local Brazilian partner bank. Collaborating with local banks and financial institutions can provide valuable insights and potentially reduce intermediary fees. Local banks are well- versed in the regulatory landscape and can offer tailored solutions that optimise payment routes and minimise costs. By building strong relationships with these institutions, you can gain access to better rates and services. Additionally, local banks can serve as reliable partners in identifying and mitigating risks associated with
cross-border transactions, ensuring that salary payments are transferred efficiently and securely. Strategies for Minimising Costs in Global Payroll Building on a solid understanding of intermediary bank fees, it is crucial to adopt strategic approaches that can significantly reduce these costs and enhance the efficiency of global payroll processes. One effective method is to leverage global payment routing solutions provided by specialist providers. These solutions are designed to optimise payment routes by identifying
the most cost-effective and efficient paths for fund transfers. By partnering with these providers, companies can minimise the number of intermediaries involved, thereby reducing the fees that can accumulate with each additional bank in the transaction chain. For instance, a multinational company with employees across Europe, North America, and Asia might use a payment provider that consolidates payments and routes them via the lowest-cost corridors. This reduces reliance on multiple intermediary banks, cutting down fees and ensuring faster delivery of salaries. Regular review and audit of payment routes are essential for maintaining cost efficiency. Over time, changes in regulatory requirements, currency exchange rates, and bank policies can affect the fees associated with different payment corridors. By conducting periodic audits, you can identify high-fee routes and take corrective
One effective method is to leverage global payment routing solutions provided by specialist providers. These solutions are designed to optimise payment routes by identifying the most cost-effective and efficient paths for fund transfers.
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GLOBAL PAYROLL MAGAZINE ISSUE 10
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