Paying an overseas supplier from Brazil is a foreign exchange transaction: the importer sells reais and buys the supplier's currency through a bank or provider authorised by the Banco Central do Brasil to operate in the foreign exchange market. The provider contracts the exchange, collects IOF (Brazil's federal tax on foreign exchange transactions, at the rate set by decree for that purpose) and sends the payment to the supplier's bank, usually by SWIFT or through a local payout rail in the supplier's country.
Brazil's foreign exchange law, Law 14.286 of 2021, allows foreign exchange transactions to be carried out freely and without a limit on value, through authorised institutions. In practice, the provider will ask for the commercial invoice, and for larger payments the contract, the shipping documents or the import declaration registered in Siscomex, Brazil's foreign trade system. Having these ready is what keeps a payment moving.
The best way to pay depends on three things: the supplier relationship, the payment size and the currency. The sections below set out the method for each case.
| Method | Best for | Main advantage |
|---|---|---|
| International business account or specialist provider | Recurring payments to established suppliers | Currency management and payouts in one workflow |
| Bank foreign exchange transfer | Importers wanting full Brazilian bank support | Local banking, documentation and trade services |
| SWIFT wire | Large payments and broad country coverage | Accepted by almost every supplier bank |
| Local payout rail through a provider | Repeat suppliers in supported countries | Lower cost and full amount received |
| Letter of credit | Large orders and new supplier relationships | Payment tied to agreed shipping documents |
| Documentary collection | Established trade where documents still matter | Usually cheaper than a letter of credit |
| Local Currency Payment System (SML) | Suppliers in Argentina, Paraguay and Uruguay | Pay in reais without a US dollar leg |
| Card or marketplace protection | Samples and low-value first orders | Convenience and buyer protection |
Each method has a point to weigh:
For suppliers the business pays every month, the goal is a route that is cheap, predictable and simple to approve. A specialist international account or a provider with local payout in the supplier's country usually gives a better rate than an ad hoc bank wire, and the supplier receives the full amount.
Set the route up once: the beneficiary verified, the currency agreed, a standard payment reference, and an approval limit for each person in the finance team. Then every payment follows the same path, and exceptions stand out. Our comparison of cross-border payment providers for Brazilian businesses sets out the published fees for Wise, Payoneer and C6 beside the banks.
SWIFT remains essential for large payments and for suppliers whose banks expect it. Its cost is more than the sending fee: the exchange rate spread, IOF and any deduction by an intermediary bank all reduce what the supplier receives.
| Charge option | Who pays |
|---|---|
| OUR | The importer pays all charges; the supplier receives the full amount |
| SHA | Each side pays its own bank; intermediaries may deduct from the amount |
| BEN | The supplier pays all charges, deducted from the amount |
Where the supplier's invoice must be paid in full, use OUR or a local payout rail. A USD 300,000 balance payment that arrives USD 80 short leaves the supplier's ledger open and can delay the release of goods.
The only reliable comparison between providers is the total in reais debited for the same foreign-currency amount, on the same day, with IOF and all fees included. Advertised transfer fees hide most of the difference, because the spread scales with the payment size.
| Illustration on a USD 200,000 payment | Cost |
|---|---|
| Spread of 1.5% | USD 3,000 |
| Spread of 0.5% | USD 1,000 |
| Difference per payment | USD 2,000 |
| Difference over 12 payments a year | USD 24,000 |
The figures are arithmetic, not quotes. Ask two or three providers for a written quote at the same time, keep the quotes on file, and review the main provider every six months. Spot exchange at Itaú and Santander settles within two business days, so book the exchange early enough for the supplier's due date.
Most international suppliers invoice in US dollars, but some will invoice in euros, renminbi or their own currency, and a few in reais. The right choice is the one with the lowest total purchasing cost once the price, the exchange spread and the FX exposure are taken into account.
For trade with Argentina, Paraguay and Uruguay, the Local Currency Payment System (SML) lets the Brazilian importer pay in reais while the supplier receives its own currency, without a US dollar leg. Itaú lists SML among its foreign trade services.
The main sourcing countries for Brazilian importers include China, the United States and the European Union, and each corridor has its own practicalities.
The most costly payment error is paying a fraudster's account after an email that appears to come from the supplier and announces new bank details. Payments sent abroad on the importer's instruction are very hard to recover.
How much protection the importer needs depends on the relationship and the amount. A new supplier and a large order call for documentary protection; a long-standing supplier and a regular order do not.
| Situation | Suitable method |
|---|---|
| Sample order of USD 3,000 | Card or marketplace protection |
| First large order of USD 500,000 for machinery | Letter of credit |
| Regular order with a supplier of several years | Transfer on open account |
| Deposit now, balance after inspection | Transfer for the deposit; balance against inspection report |
Advance payments carry the most exposure. Limit deposits on first orders, release balances against a pre-shipment inspection or the bill of lading, and keep the payment terms in the contract.
Many importers pay the supplier months before they sell the goods. When that gap is the real constraint, a cheaper transfer does not solve it; finance does. Brazilian banks offer import finance and credit lines for foreign trade, and suppliers may extend credit terms once the relationship is established.
The guide to trade credit for importers and exporters explains each facility and how lenders assess it, and the guide to business bank accounts for importers and exporters compares the accounts that sit behind them.
Pix is Brazil's domestic instant payment system run by the Banco Central do Brasil. It is not a route to an overseas bank account. It is useful on the domestic side: funding an international provider account in reais, paying Brazilian freight forwarders, customs brokers and logistics companies, and collecting from domestic buyers of the imported goods.
The foreign leg of every supplier payment still runs through a foreign exchange transaction and a payment to the supplier's bank.
Every import payment should leave a complete file, which supports the company's accounts, tax position and any query from the bank or the authorities.
Keeping the file per shipment, rather than per payment, makes it simple to match deposits, balances and the goods received.
For the accounts behind these payments, see our guide to business bank accounts for international businesses in Brazil.
Helm, the firm's own business account and payments platform, gives importers payout accounts in their suppliers' currencies, conversion through licensed providers and supplier payments on local rails in supported countries, with the invoice, bill of lading and customs documents attached to each payment. Balances are held by licensed partners, and the importer contracts with them through Helm.
Helm suits importers with regular supplier payments across several countries. It is used beside a Brazilian bank, which remains the place for BRL operations, taxes and import finance. Pricing is a monthly platform fee plus the partners' fees, set out in writing; the trade payments service sets up the corridors and the onboarding.
For established suppliers, an international account or a bank foreign exchange transfer on a repeatable route. For large orders or new suppliers, a letter of credit or documentary collection adds protection.
Yes. Brazil's foreign exchange law allows transactions without a limit on value through authorised institutions, and the provider will ask for the invoice and supporting documents.
No. Pix is Brazil's domestic instant payment system; it can fund a provider account in reais, but the payment abroad runs through a foreign exchange transaction.
It suits large orders and new or higher-risk suppliers, because payment is tied to the agreed shipping documents. It costs more and needs more documentation than a transfer.
Compare all-in quotes at real payment sizes with IOF shown, avoid double conversion, negotiate the invoice currency and hedge large future payments with forward contracts.
Yes, through the Local Currency Payment System (SML) for trade with Argentina, Paraguay and Uruguay, offered by banks such as Itaú.
Usually the commercial invoice, and for larger payments the contract, shipping documents or the import declaration registered in Siscomex.
Buckingham Capital Consulting arranges supplier payment routes, foreign exchange and multi-currency accounts for Brazilian and Latin American importers through licensed partners, and has obtained payment and e-money licences for firms including Nexpay, Global Send and Dzing Finance since 2013. Its trade payments service compares providers on each corridor and sets out the fees, rates and settlement times in writing.
Speak to an expert: WhatsApp +44 7563 115980, Telegram @buckinghamcapital or info@buckinghamcapitalconsulting.co.uk.
This article is general information, reviewed against the regulator’s published requirements on the date shown. It is not legal advice; the regulator’s current publications take precedence.