Why Irish Manufacturers Need a Smarter Foreign Currency Payments Process

Irish manufacturers trade in multiple currencies every day: importing from the UK and Asia, selling into the US, eurozone and beyond. FX isn’t just a cost on supplier payments. It also shapes the real value of export sales once they are converted back to euro. Managed well, this can be a competitive edge. Managed poorly and it becomes a steady leak of margin.

The Hidden Cost of FX on Supplier Payments

Irish SMEs typically face charges from traditional banks of about €15-€50 per transaction for foreign currency payments. On top of this, receiving banks may deduct €10 – €40.
When 2 – 3% is then added to the FX rate, the overall cost of a cross-border payment becomes a significant drain on margins, particularly for businesses making regular international payments.

What does this mean for manufacturers?

For a manufacturer paying €100,000 a month to overseas suppliers, a 2% FX markup alone equals €2,000 in lost margin every month or €24,000 a year before counting any fees.

For mid-sized businesses moving several million euro annually, the impact can quickly reach six figures.

From an operational perspective, cross-border payments are slower than domestic ones and contain an element of added risk.

Manual compliance checks and bank formatting errors with IBAN and SWIFT codes can add days to international payments. This is typical when multiple correspondent banks are involved.
For manufacturers, payment delays can mean production stoppages, missed shipment windows and overtime costs.

The risk of fraud is another pressure point. According to FraudSMART , Irish SMEs have been losing close to €1 million a month in email fraud over the last two years, with invoice redirection and chief executive impersonation scams the most common ways money has been stolen.

Because foreign currency payments tend to be large and less frequent, a single fraudulent overseas transfer can be devastating.

Export sales and FX

Export-oriented sectors such as agrifood alone accounted for a record €21.2 billion of exports in 2025, much of it denominated in foreign currencies.

For Irish manufacturers exporting into the UK, USA and further afield, exchange rate volatility can quietly erode profit margins long after a sale has been agreed.

A strengthening euro can reduce the value of overseas payments by the time funds arrive, leaving businesses exposed between invoicing and settlement.

In sectors where margins are already under pressure from energy, labour, and supply chain costs, even modest currency movements can have a noticeable impact on profitability and cash flow forecasting.

Managing the FX Position

Irish manufacturers should begin by identifying their full foreign currency exposure across both incoming and outgoing payments.

This includes export receipts, supplier payments, freight costs, raw material purchases, and any foreign currency borrowing.

Reviewing where currencies naturally offset each other can help reduce unnecessary conversions. For example, businesses receiving USD from US customers may use part of those funds to pay US-based suppliers rather than converting back and forth into euro.

A structured FX risk assessment allows businesses to decide what level of exposure they are comfortable retaining and what portion should be protected using tools such as forward contracts.
Forward contracts can lock in rates on both sides: protecting the euro cost of future supplier payments and the euro value of large foreign currency receivables.

How Fexco International Payments supports Irish Manufacturers

Headquartered in Co Kerry and regulated by the Central Bank of Ireland, Fexco International Payments helps Irish manufacturers to maintain predictable costs on overseas payables and receivables, protecting their bottom line.

• • More competitive exchange rates

Access exchange rates that are typically far more competitive than those offered by traditional banks, helping manufacturers protect margins on international trade.

• • Lower international payment fees

Reduce the cost of sending and receiving foreign currency payments with lower than bank transaction fees and No extra charge for same-day payment delivery.

• • Forward contracts for greater certainty

Lock in exchange rates in advance to protect against market volatility and improve budgeting, pricing, and cash flow forecasting.

• • Faster international settlement

Improve supplier relationships and operational efficiency with quicker payment delivery times (same-day & T+1 settlement).

• • Global reach across major and emerging markets

Send payments in over 165 currencies to more than 200 global destinations, supporting both established supply chains and international expansion.

• • Access to exotic and hard-to-source currencies

Make payments into developing and less accessible markets with greater ease, reducing friction when sourcing materials or components internationally.

• • Greater visibility through transparent reporting

Access detailed reporting and transaction tracking to support financial oversight, reconciliation, and audit requirements.

• • Reduced administrative burden

Streamlined payment processes and centralised FX management free up internal finance teams and reduce manual workload.

• • Dedicated  account managers

Work with easily accessible, experienced cross-border payment specialists who understand manufacturing payment cycles, market movements, and sector-specific challenges.

• • Enhanced fraud protection and payment security

Strengthen payment controls with two-factor authentication access to our secure online platform, segregation of duties, and multi-level approval processes.

Final Thoughts

In sectors where margins are already under pressure from energy, labour, and supply chain costs, even modest currency movements can have a noticeable impact on profitability and cash flow forecasting. A smarter foreign currency payment strategy helps manufacturers reduce this uncertainty through better timing, market visibility, and tools such as forward contracts that allow businesses to secure exchange rates in advance and plan with greater confidence.

In addition, adopting a more streamlined approach for high-volume international payments and receivables can enhance productivity and reduce administrative burden on finance teams.
Automating payments reduces or eliminates manual processes that can create errors, payment failures and leave the process open to fraud.

Ready to Optimise your FX Payments Process?

If you would like to discuss your current international payment processes or explore ways to better manage currency risk, contact Ian Craddock for a no-obligation conversation about your business’s requirements and opportunities for savings.

Ian and the Fexco International Payments team will also be attending the National Manufacturing and Supply Chain Conference and Exhibition at the RDS on 27th/28th May. Stop by for a chat at Stand K43.

Ian Craddock
Senior Business Development Executive
Fexco International Payments
Mob: +353 87-9094392
Landline: 066 979 9072
icraddock@fexco.com

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