Cross-Border Payment Strategies with Forward FX Orders
As businesses diversify and look for new and untapped markets, many will look for opportunities to expand to new areas of the globe. Exploring new markets, engaging new customers, and expanding operations and workforces internationally can be achievable, but making local currency transactions can sometimes be challenging.
Closed Forwards: This option allows you to lock in the current exchange rate and receive foreign currency funds on a specified future date, known as the maturity date. The transaction must be completed on the maturity date at the agreed exchange rate, with the full amount settled on that date.
Open Forwards: Similar to Closed Forwards, an Open Forward lets you lock in the current exchange rate for future settlement. However, unlike Closed Forwards, you can draw down the funds at any time within the specified period. Drawdowns are processed at the agreed-upon rate, and the trade can be settled either in full or in part, as long as the total amount is paid by the maturity date.
Corpay's Forward Booking services are also available for integrated clients using our REST API. Our Forward API endpoints support the booking of both Open and Closed Forwards, offering seamless integration into your existing systems. Additionally, the API includes endpoints for the drawdown of Forward Contracts, enabling you to drawdown funds as payments to third-party beneficiaries or into your Corpay-held Multi-Currency Account.
These API services help our partners implement sophisticated yet simple technology solutions to “auto hedge” at individual transaction levels avoiding margin slippage due to FX rate fluctuations and freeing up internal resources to focus on other business initiatives.
No matter what industry you are in (Travel, FinTech, E-commerce, or SaaS), by leveraging Corpay's Forward Order booking capabilities via our REST API, you can enhance your hedging strategies, gain greater control over your cross-border transaction requirements/workflows, and protect your business from the uncertainties of currency fluctuations.
For detailed technical information on our Forward API endpoints, please refer to the Corpay API documentation.
Contact us today to learn more about how Corpay Cross-Border can support your foreign exchange needs.
