Amex tailors forex services to SMEs

American Express has started offering foreign currency payment services to small and medium sized businesses (SMEs) in New Zealand.
Up until now the currency payments business has been dominated by banks but American Express hopes to fill a niche where it believes the foreign exchange requirements of SMEs are often overlooked.
"Clearly this space is dominated by the banks but we feel that there is room for a player who can offer a personalised round-the-clock and very competitive service as opposed to the general one size fits all approach of the major banks," says Barry Fletcher, head of sales international payments for Australia and New Zealand.
The company is best known for its credit cards but its business also extends to business travel, traveller's cheques and foreign exchange.
With its FX International Payments (FXIP) division, businesses will be able to use foreign exchange services such as telegraphic transfers, drafts and cross currency payments.
As part of the move, American Express says it will waive fees for single transactions over $US10,000 and any transactions under that will cost just $10.
Fletcher says its service draws on the company's global buying power which gives it access to competitive wholesale rates.

He says New Zealand's SMEs are similar to Australia in terms of handling foreign exchange. A recent study there showed that only 5% of small businesses and 25% of medium size businesses had a good understanding of their foreign exchange requirements
"The vast majority therefore, were not managing that very important part of their business effectively, they were missing opportunities and no doubt costing them money," he says.
The company says the service is open to all businesses regardless of whether they hold an American Express card.