Key Takeaways
-
Avoid unnecessary currency conversions between the buyer's funds and the supplier's required currency.
-
Compare the total amount paid with the amount the supplier receives, not just the transfer fee.
-
EUR can be used as the funding currency while an eligible Chinese supplier receives CNY.
-
A CNY balance is not necessarily required before making a CNY supplier payment.
-
XTransfer offers Hungarian businesses an EUR Local Account, Global Accounts for multi-currency needs, and X2X for payments between XTransfer users with zero transaction fees.
Overview
For Hungarian businesses buying from China, the cost of a supplier payment is more than the transfer fee. If funds move through several currencies before reaching the supplier, each conversion can add another FX spread or fee.
The practical goal is simple: use the most efficient currency path and know the supplier's final CNY receipt before sending the payment.
Where Do Unnecessary FX Costs Come From?
A Hungarian business may hold EUR while a Chinese supplier invoices in CNY.
The payment can therefore follow:
EUR → CNY → Supplier
A more complicated route may involve an additional currency:
EUR → USD → CNY → Supplier
Every additional conversion creates another rate and cost to evaluate.
The simplest way to compare payment routes is to check:
-
How much does the buyer fund?
-
What FX rate is applied?
-
What fees are charged?
-
How much CNY does the supplier receive?
The lowest transfer fee does not necessarily mean the lowest total cost.
Should You Pay a Chinese Supplier in EUR or CNY?
The answer depends on the supplier agreement.
Pay in CNY when:
-
The supplier quotes in CNY.
-
The supplier requires CNY settlement.
-
You want to control the exact CNY amount received.
The payment flow can be:
EUR → CNY → Chinese supplier
This puts the currency conversion on the buyer side and gives the supplier a clear CNY receipt.
Pay in EUR when:
-
The supplier accepts EUR.
-
The commercial price is agreed in EUR.
-
The supplier is willing to manage the EUR-to-CNY conversion.
The flow can then remain:
EUR → Chinese supplier
Neither currency is automatically cheaper. Compare the total buyer cost and final supplier receipt for the actual transaction.
Can You Pay in CNY Without Holding CNY?
Yes, where the payment route supports it.
A Hungarian business can fund a payment in EUR while an eligible Chinese supplier receives CNY in its mainland China bank account.
The flow can be: EUR → XTransfer → CNY → Chinese supplier
XTransfer can send CNY to eligible supplier bank accounts in mainland China or Hong Kong and handle the related FX reporting to the bank.
This means the buyer does not necessarily need to maintain a separate CNY balance before making the payment.
How XTransfer Helps Manage the Currency Flow
1. EUR Local Account in Hungary
For Hungarian businesses, XTransfer provides an EUR Local Account.
This gives businesses using EUR for international trade a local EUR payment route that can be used as the funding point for cross-border supplier payments.
A typical flow is: EUR → XTransfer EUR Local Account → CNY → Chinese supplier
Best for: Hungarian businesses that primarily operate in EUR but regularly pay Chinese suppliers in CNY.
XTransfer's broader local-account network covers around 60 countries and regions.
2. Global Account for Multi-Currency Trade
For businesses managing several currencies, XTransfer Global Account supports 20+ currencies across 200+ countries and regions.
It can be useful when a Hungarian business needs to manage:
-
EUR for European trade
-
CNY for Chinese suppliers
-
USD or other currencies for global suppliers
Best for: businesses with multiple currencies or international supplier networks.
3. X2X for XTransfer-to-XTransfer Payments
When both parties use XTransfer, X2X enables near-instant transfers between XTransfer accounts with zero transaction fees.
Best for: recurring B2B payments where both buyer and supplier use XTransfer.
A Simple FX Check Before Every Payment
Before approving a supplier payment, check these five items:
| Check | Question |
|---|---|
| Invoice currency | What currency does the supplier require? |
| Funding currency | What currency do I actually hold? |
| Conversion path | How many FX conversions are involved? |
| Total cost | What will I pay after FX and fees? |
| Supplier receipt | How much will the supplier actually receive? |
For recurring orders, using the same checklist can make FX costs easier to track and reconcile.
When Does FX Optimization Matter Most?
FX management becomes more important when a business:
-
Pays Chinese suppliers regularly.
-
Has CNY-denominated invoices.
-
Holds EUR but pays suppliers in CNY.
-
Works with multiple currencies.
-
Operates on relatively narrow product margins.
For a small, one-off payment, the simplest existing bank route may still be sufficient.
FAQs
Is paying in CNY always cheaper than paying in EUR?
No. CNY can make the supplier's final receipt more predictable, but the buyer still needs to compare the FX rate, fees and total amount funded.
Can I fund a CNY supplier payment with EUR?
Yes, where the applicable payment route supports EUR funding and CNY payout. The buyer can fund in EUR while the eligible Chinese supplier receives CNY.
Do I need a CNY account?
Not necessarily. A supported payment route can convert EUR into CNY as part of the supplier payment.
Is HUF-to-CNY better than HUF-to-EUR-to-CNY?
Not automatically. Compare the actual rate, fees and final supplier receipt for each available route.
What should I compare when choosing a payment provider?
Focus on four numbers: Amount funded → FX rate → total fees → amount received. This gives a more accurate view of the real payment cost than the advertised transfer fee alone.
Disclaimer
This article is compiled from publicly available sources and interview content for informational purposes only and does not represent the official views of XTransfer. XTransfer accepts no liability for any damages arising from reliance on this content.
