5 Cheap Ways to Pay International Invoices from New Zealand

Whether you need to pay school fees, medical expenses, household or power bills, paying these expenses to a country overseas can be tricky. Here are 5 ways you can reduce the cost of these international invoices and avoid some of the stress.

1. By Credit Card

Giving your credit card details online, or directly to someone you are paying the bill to, means you are likely be charged a fee as a percentage from your bank or card issuer. Usually, it is between 3% and 5%. Importantly, you won’t be charged a flat transaction fee on top.


When this is a good option?

This makes it a cost-effective way to pay for small international bills under $200.


Pros and Cons of paying a bill by credit card

Using a credit card is the easiest way to pay for bills in another country. The biggest downside is that the bank fee is usually a percentage of your bill payment. This means for bigger payments, the fee can really add up.
Related: Can you use a Credit Card to send money overseas?



2. An International Money Transfer Online

If your biller has a bank account you can pay into, then an international money transfer can be a great option. You can transfer the money into their bank account using a bank or a money transfer company. Be mindful though, many money transfer companies have a minimum transaction size of $1000


When this is a good option?

An international money transfer is a good option for larger bill payments above $1000 and when your biller has a bank account you can pay into. If you are using this method, make sure you include your invoice or bill number on your payment so they know it’s from you.


Pros and Cons of paying a bill via an International Money Transfer

The exchange rate you will get from making an international money transfer will usually be better than Paypal or using a credit card, but there is more work involved. Banks will often charge between $18 to $22 so, for smaller amounts especially, it can be an expensive way to send money overseas for smaller amount

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3. Paypal

Paypal remains the world’s largest internet payment company. It is very easy to set up an account and most overseas billers will accept payment from Paypal, making this very handy.


When this is a good option?

Paypal is great to pay bills if you already have a Paypal account with money in it. It’s also a relatively cost-effective way to pay for smaller bills up to $200


Pros and Cons of paying a bill by Paypal

Paypal is very quick and easy – particularly if you already have a Paypal account.

Paypal does charge for this convenience though. They charge a flat fee and a percentage of the payment. This won’t matter too much for small bill payments under $200 however there are cheaper options for larger amounts.
Related: Converting and Sending Currency via PayPal – How does it compare?

4. Western Union

Some view Western Union as outdated, with the emergence of newer online players, such as Paypal and Wise (formerly known as TransferWise), however they still remain a good option in certain situations.


When this is a good option?

The biggest advantage of using Western Union is their global reach. They are particularly useful if you need to pay into a country that doesn’t have a big banking sector. Payments to some parts of South America, Africa and Asia are almost impossible through a bank but with its unparalleled global reach, Western Union can be a good option.


Pros and Cons of paying a bill via Western Union

The biggest con of using Western Union is the cost. Unfortunately, there is no flat or common fee. The exchange rate, fees and charges all depend on where you are sending the money, how much and how it is being received.
Related: Western Union Review

5. Set up a local bank account

These days, most banking can be done online so it can make sense to set up a bank account in the country you are paying the bills to. For example, if you own a property in France and are constantly paying bills in Euros relating to the house, it might pay to set up a French bank account next time you are in the country.

Once the account is open, you can make an international money transfer to add money to the account and then use it to pay bills as they arise.


When this is a good option?

This is a great option when you are a dual citizen or when you often have lots of bills in the same country.


Pros and Cons of setting up a local account

The biggest advantage is saving on common fees and charges that come with paying via credit card or PayPal. It’s also so much easier to pay a local bill in a local currency using a local account. The big drawback is the hassle of opening the account and maintaining a balance. This might not even be possible if you are not a resident of the country.

Compare cheaper ways to transfer money from overseas

Oscar Murray
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Last updated
March 24th, 2021