When managing a team in Brazil, it’s natural to focus on the obvious costs like salaries. However, traditional banks often hide extra fees, unpredictable exchange rates, and cumbersome processes that quietly inflate your payroll expenses.
These additional costs can be frustrating and hard to track—but they don’t have to be.
This guide will walk you through the real costs of paying employees in Brazil, how to calculate them, and why switching to CambioPay could save your business tens of thousands of dollars every year.
Step 1: Look Beyond Salaries
If you’re only considering employee salaries, you’re not seeing the full picture. Traditional banks add fees and other costs that might surprise you.
The Problem: Excessive Banking Fees
Banks typically charge between $30 and $50 for every international transaction. For a business with 50 employees, paying monthly salaries through traditional banks means:
- Per-transaction fee: $50
- Monthly fees: $50 x 50 employees = $2,500
- Annual fees: $2,500 x 12 months = $30,000 annually
The Solution: CambioPay Saves You Money
CambioPay simplifies this process and significantly reduces costs by charging just $3.99 per transfer. Here’s the same example:
- Per-transaction fee: $3.99
- Monthly fees: $3.99 x 50 employees = $199.50
- Annual fees: $199.50 x 12 months = $2,394 annually
Result: You save $27,606 annually on banking fees alone.
Step 2: Beware of Hidden Currency Exchange Costs
Currency exchange is another area where traditional banks make international payroll expensive.
The Problem: Unpredictable Exchange Rates
Many banks wait until the funds arrive in Brazil to set the exchange rate. At that point, the Brazilian bank can apply an inflated rate for the conversion, leaving businesses with unexpected costs.
For example:
- Payroll amount: $50,000
- Bank exchange rate spread (up to 5%): $50,000 x 0.05 = $2,500 per month
- Annual cost of spread: $2,500 x 12 months = $30,000 annually
The Solution: CambioPay Offers Predictable Rates
With CambioPay, you get predictable and competitive exchange rates fixed at the time of your payment in USD. Spreads are much lower, typically around 0.5%.
For the same $50,000 payroll:
- CambioPay spread (0.5%): $50,000 x 0.005 = $250 per month
- Annual cost of spread: $250 x 12 months = $3,000 annually
Result: You save $27,000 annually on currency exchange.
Step 3: Simplify the Payment Process
The Problem: Time-Consuming Processes
Traditional banks require businesses to create separate transactions for every employee, each with its own documentation and compliance checks. These processes are time-consuming and prone to errors.
For example:
- Processing time for each transfer = 30 minutes
- Time spent for 50 employees = 30 minutes x 50 = 25+ hours per month
That’s over half a week lost each month just managing payroll.
The Solution: CambioPay Makes It Simple
CambioPay allows you to make a single USD payment to cover all employees in Brazil. Here’s how it works:
- Upload a file with beneficiary details or manually create payment instructions.
- Make one consolidated payment in USD.
- CambioReal distributes payments locally in Brazil, ensuring employees receive the exact amount in reais.
Result: You save time, reduce errors, and avoid the hassle of repetitive bank processes.
Step 4: Consider Administrative Costs
Administrative tasks can add hidden costs to your payroll, especially when using traditional banks.
The Problem: Lost Time and Resources
Traditional methods involve:
- Managing multiple transactions manually.
- Following up on delayed or blocked payments.
- Resolving issues caused by documentation errors.
These inefficiencies add up to an estimated $10,000 annually in administrative overhead.
The Solution: CambioPay Minimizes Administrative Burden
CambioPay reduces administrative work by consolidating payments and simplifying the process.
- One Payment: All beneficiaries are paid with a single transaction.
- Fewer Issues: Payments are processed without unnecessary delays or errors.
- Bilingual Support: Need help? CambioReal offers support in English and Portuguese for you and your team.
Step 5: Calculate the Total Cost
Let’s compare the total annual costs of paying 50 employees in Brazil using traditional banks versus CambioPay:
| Cost Component | Traditional Banks | CambioPay |
| Banking Fees | $30,000/year | $2,394/year |
| Exchange Rate Costs | $30,000/year | $3,000/year |
| Administrative Overhead | $10,000/year | Minimal |
| Total Annual Cost | $70,000/year | $5,394/year |
Annual Savings With CambioPay: $70,000 – $5,394 = $64,606
Why CambioPay Works for Businesses of All Sizes
CambioPay isn’t just for large corporations. Whether you’re managing a team of 1 or 1000, CambioPay adapts to your needs. It’s especially ideal for small and medium-sized businesses that want to avoid the high costs and inefficiencies of traditional banks.
Key Benefits:
- Predictable Costs: Competitive exchange rates ensure your payroll budget stays on track.
- Fast Payments: Employees receive salaries within one business day.
- Transparent Fees: No membership costs or hidden charges—just pay-as-you-go.
Conclusion
Paying employees in Brazil through traditional banks may seem like the default choice, but the hidden fees, unpredictable rates, and time-consuming processes can make it a costly one.
With CambioPay, you can simplify payroll, save over $64,000 annually, and ensure your team is paid accurately and on time.
Ready to take control of your payroll costs? Learn more about CambioPay and start saving today.