Running a small business today in America it is anything but a “small” feat. The challenges are huge, from unpredictable supply chains to inflation to a maze of complicated regulations. But one challenge that's pushing many SMBs to the forefront is perhaps one you wouldn't expect: international payments.

Small businesses today work globally from day one. Today's global market, which has been transformed after the pandemic and with the continued growth of social media, means that the demand and supply of goods and services is no longer limited to one geographic location. And for any business, whether large or small, international growth can mean new customers, new suppliers and new opportunities.

However, many small business leaders are getting their hopes up global expansion — and all the benefits that come with it — marred by a number of macroeconomic and logistical challenges. These barriers are massive, the biggest being the cost and complexity of international payments.

Related: 6 Obstacles to expanding your company internationally – and how to overcome them.

According to one last poll commissioned by Wise, almost half (49%) of small business leaders agree that the complexity of international payments prevents them from expanding their operations abroad, while over a third (31%) said they would enter the markets new if international payment costs were reduced. Inflation, taxes and regulatory barriers were also cited as major barriers to going global.

This reluctance to expand globally is not an exaggeration on the part of business owners. In 2023, small and medium-sized businesses (SMBs) in the US lost almost $800 million in hidden fees on international payments – perhaps when sending money to suppliers in China or paying contractors in the UK. but also deceptive. After all, cash flow is king for small businesses, and they need to be able to know exactly how much they're paying and for what services.

This is disappointing concealment of charges remains standard practice in international payments, but is also not surprising. This isn't an issue you hear about every day, in part because it's so hard to spot the problem in the first place. And while there is efforts by consumer-focused regulators to prevent the false advertising of “toll-free” or “no-fee” services that hide costs in an inflated exchange rate, we have yet to see the same effort being made for small businesses. The apparent gap in protection for SMBs – and the gap in the existence of business-oriented regulatory bodies in general – not only hurts businesses financially, but also undermines confidence in financial services' commitment to fairness and their supposed love of small business owners.

While there are many problems to solve at the industry level, business owners have the power to take matters into their own hands without waiting for providers to achieve transparency. As someone who works with small businesses every day on their global financial needs, here are some top tips to help leaders overcome the challenges of expanding overseas:

1. Educate yourself: Take the time to understand the fine print of any financial service deal. Be aware of potential hidden fees and how they can affect your bottom line. An easy way to do this is by comparing the exchange rate you see from your provider to the one listed on Google. If they don't match, there is likely a hidden exchange note.
2. Choose transparent payment providers: With this knowledge in mind, look for financial service providers that offer transparent pricing models. Avoid those that claim to be “fee-free” – they are probably driving up costs through hidden fees in the exchange rate.
3. Protection against currency fluctuations and exchange rate risks: Expanding overseas means dealing with multiple currencies, which can expose your business to volatility exchange rates. To prevent such fluctuations from catching up with you and significantly affecting your profit margins, look for providers that offer automatic conversion services that convert your money automatically between the two currencies once the desired rate is reached. This makes managing your budget and cash flow more predictable.
4. Take the guesswork out of your supply chain: If you're a small business that supplies or sells goods internationally, it's no secret that international supply chains can come with delays, high shipping costs, and complex trade regulations. Consider partnering with companies that specialize in international shipping and customs clearance. Having access to a convenient, transparent solution to track where your shipment is every step of the way – just as you want to see where your money is in real time – gives you peace of mind and lets you get back to running your business small.

Related: 7 factors entrepreneurs should consider before going out into the world

The $800 million lost by SMBs to unclear international payment fees isn't just a number—it's a barrier that prevents growth and stifles innovation. But with the right tools and knowledge in hand, it is possible for businesses to overcome these challenges and achieve their goals for global operations.