Cross-border payments involve transferring money or other forms of value from a party in one country to a party in another. These payments can take many forms, depending on the needs of the parties involved and the regulatory requirements of the countries in question.

Generally, any cross-border transaction will pass through some variation of the following steps, beginning with initiation and progressing to receipt and reconciliation. 

1. Initiation: The payment process begins when the sender (or payer) initiates the payment. This may involve filling out a payment form, providing the relevant details to their bank or payment service provider (PSP), or using a digital payment platform or app such as PayPal.
2. Compliance checks: The bank or PSP will perform regulatory compliance checks. Exactly what they need to do will vary based on the regulations in the jurisdictions relevant to the transaction but will generally include KYC, AML, CFT and other checks to ensure that the transaction aligns with the regulatory requirements.
3. Processing: Once the payment is initiated, it must be processed and cleared through various intermediaries, such as correspondent banks, payment processors, and clearinghouses. While these intermediaries generally charge fees for their services, they are often necessary to ensure the payment is authorised, validated, and settled.
4. Currency conversion: If necessary, the bank will convert the payment into the relevant currency at the current exchange rate. In some instances, this may involve a direct conversion from the home currency of the sender to the home currency of the receiver, while in other instances, it can involve the use of a third currency like the US dollar. The exchange rate used can impact the overall cost of the payment. This may involve using foreign exchange (FX) brokers, banks, or other intermediaries.
5. Settlement: Once the payment has been processed and converted (if necessary), it must be settled (or transferred) to the recipient’s account. The recipient’s bank receives the payment and credits it to the recipient’s account. This may involve using various payment rails, such as SWIFT, ACH, SEPA, or other payment systems, depending on the countries and currencies involved. The payment is considered settled once the recipient’s bank confirms that the payment has been credited.
6. Receipt and reconciliation: The recipient (or payee) receives the payment in their account and can use the funds as needed. The sender and recipient may receive a payment confirmation and can reconcile their records accordingly.

The cross-border payment process is naturally more complex than a domestic transaction as it can involve multiple intermediaries and result in longer processing times and higher fees. 

The entire process of cross-border payments can take several days or more to complete, depending on factors such as the countries involved, the currencies used, the payment amount, and the regulatory requirements of the relevant authorities.  The costs will also vary depending on the fees charged by intermediaries and the exchange rates used.

While it can still be a cumbersome process overall, technological advancements and regulatory changes are helping to make cross-border payments faster, more transparent, and more affordable.