26 | capitaregistrars.com
SERVICE UPDATE
GETTING TO GRIPS WITH GLOBAL PAYMENTS
Making dividend payments to overseas shareholders in the local currency is now a lot easier, thanks to a partnership between Capita Registrars and Travelex
T
he increasing globalisation of business and the ease with which shares can be bought from anywhere in the world means that issuers will often find
themselves making dividend payments to shareholders in other countries.
But simply dispatching a sterling cheque to an overseas address can cause the shareholder a lot of problems. These overseas payments can take a long time to clear, causing great frustration, and – in extreme cases – the cost of cashing a cheque can outweigh the value of the cheque itself. The other route for overseas payments is to have the dividend paid directly into a foreign bank account in local currency, but this can be a lengthy process and again can cause frustration to the shareholder unless the process is managed properly.
It was with the aim of resolving these difficulties for customers that Capita Registrars and Travelex came together 18 months ago. Graham Renn, Capita Registrars’ Client Services Director, says: “We recognised that there was a growing need for a successful partnership with a company that provided an efficient, cost-effective and secure service and we have been delighted with the improvements that partnering with Travelex has brought for shareholders.”
TOP TIPS FROM TRAVELEX ON INTERNATIONAL BUSINESS PAYMENTS
Demand total transparency on your international payment
costs Look beyond the transaction fee. It’s always worth knowing exactly what rate you are buying and selling your currency at as the margin will often be the largest part of any cost. Ask your provider for full details of your fees and the margins, and be vigilant in checking these against the market.
Look for every opportunity to ‘net off’ your currencies
Rather than continually swapping currency back and forth into sterling, look at
SPRING 2010
A powerful partnership Graham adds: “This is a classic example of both companies adding value to our portfolios of services and how a successful partnership can grow. We are now offering these kinds of services to our share-dealing customers and beneficiaries of our customers’ share plans.”
As part of Capita Registrars’ International Payments Service funds can now be received by shareholders as a local currency cheque or into a local bank account, faster and more efficiently than ever before. “That is good
news for our clients, their shareholders and their employees,” says Graham.
International rescue Travelex, perhaps most
familiar for its airport foreign currency operations, is also a specialist in cross-border payments on a business level as well, through its Global Business Payments division. “We’re Travelex’s best-kept secret,” says Strategic Account Director Graeme Ventris.
Client Services Director,
GRAHAM RENN
Capita Registrars
Graeme explains: “If you ask anyone who has experience of sending international business payments they will tell you it is complex, time consuming and inconvenient. Our service is really about streamlining the process and making it easy for businesses to send international payments – so they spend less time dealing with payment issues and more time concentrating on what’s important to them.”
your future incoming and outgoing currency payments and schedule your swaps accordingly.
Improve accuracy and reduce costs further
Lost payments are outrageously expensive in both time and money. Ask your supplier what proactive steps can be taken to eliminate payment errors at source before any payments are sent.
Strategic Account Director, Travelex
GRAEME VENTRIS
To see how Capita Registrars and Travelex can help you, talk to your relationship manager to arrange an overseas payments ‘health check’.
In fact, more than half of finance directors have reported problems making international payments, according to Harris Interactive Research. Different international banking systems and methods of handling by intermediary banks can cause problems and delays. Moreover, mistakes – such as the incorrect information being sent with the payment – can lead to expensive charges, not the least of which is the notorious ‘triple-dipping’, where an overseas payment is rejected, returned to the UK and then sent again – incurring a fee and a marginal rate charge on all three legs of its journey.
By taking advantage of Travelex’s expertise in international payments, businesses can cut costs and significantly improve efficiencies. “Payments are now taking 7-10 days rather than, in some cases, 7-10 weeks,” says Graeme Ventris. Indeed, a number of other Capita businesses, as well as some of Capita Registrars’ clients, are already benefiting from the Travelex service.
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