Find an affordable way to manage your overseas payments when you send international business transfers.
For an increasing number of businesses, the days of dealing only within the domestic market are long gone. From suppliers to customers and from sourcing product to selling it, in the online world a modern business regularly needs to send and receive funds from overseas.
But if you don’t know what you’re doing and you don’t know how to find value for money, sending funds overseas can become a significant expense for your business. Read on to find out how you can find the most-cost effective way to send international business transfers.
Compare International Money Transfers
Why does it makes sense to compare?
For time-poor business owners, the simplest option when sending money overseas often seems to be going through the bank that handles all their other business finances. Unfortunately, this means that many business owners pay a lot more for international transfers than they need to.
Because banks offer a diverse range of financial products and services, the exchange rates they offer are far from the best available. In fact, they’re some of the worst around, and they can take up a sizable chunk of the amount you send overseas. Then there’s the fact that banks charge high fees, generally ranging from $25 to $75 per international payment.
The poor deals offered from the major banks has led to the emergence of a number of specialist online money transfer companies in recent years. As these companies focus entirely on sending money overseas and deal with large volumes of currency, they can offer you a much better exchange rate than your bank and also tend to charge lower fees — which is all very good news for your bottom line.
Bob has been buying kitchen and bathroom supplies for his homewares store from France for the past 25 years. For each of those 25 years, whenever he’s needed to make an international payment he’s done so via bank wire transfer. But after seeing an advertisement for an online money transfer company offering significantly better exchange rates than his bank, Bob decided to compare their fees and see which one offered the best financial solution for his business. He compares how much it will cost him to send a $1,000 payment to France.
|Bank||Money transfer company|
|Exchange rate||1 USD = 0.858 EUR||1 USD = 0.877 EUR|
|Transfer method||Wire transfer||Online bank account transfer|
|Transfer time||1-3 business days||3 business days|
|Amount received (in EUR)||€858||€877|
As this example shows, Bob can save $40 in fees by using an online transfer company instead of his bank and also send an extra €19 to France.
Many online transfer companies also offer flexible transfer options to allow you to save both time and money. For example, they allow you to place limit orders, which are transfers that will only be sent if the conditions you specify are met, such as the exchange rate reaching a certain level.
Forward contracts are another option offered by some providers. A forward contract allows you to secure the current exchange rate for a transaction that will take place in up to 365 days’ time. Say for example that you Bob knows he is due to make a payment of $10,000 to his regular French supplier in three months. But Bob is certain that the exchange rate, which currently sits at 1 USD = 0.88 EUR, is going to drop in that time, so he places a forward contract to lock in the current rate.
3 months later when the $10,000 is sent overseas at the rate of 1 USD = 0.88 EUR, the best rate available on the foreign exchange market is 86 Euro cents for every US Dollar — which means Bob has been able to send an extra €200 to his supplier just by planning ahead.
Which services will let me send international business transfers?
There’s certainly no shortage of providers who will allow you to send international transfers to manage your business’ overseas transactions. All the major banks including Wells Fargo, US Bank, Chase, Bank of America, and more offer this service, as do global brands like HSBC and Citibank.
If you’d prefer to go with an online transfer provider and quite possibly save yourself from money, you once again have several options to choose from. Some of the companies that offer this service include USForex, World First, Payza, and several more. You can find a list of reputable transfer providers on the left of this page, so start comparing their fees and features today.Back to top
How do I compare money transfer services?
Make sure to consider the following factors when you’re checking to see how money transfer companies compare to their competitors:
- Exchange rates. This is the best place to start as it’s one of the major areas where companies turn a profit and consumers can lose out. Look for a provider that consistently matches its competitors’ rates or even beats them.
- Transfer fees. Try to find out exactly how much you will need to pay each time you send a transfer. Fees can vary depending on where you are sending the money, how much you send, and even your payment method, so make sure to take this into account as well.
- Transfer options. Some companies offer forward contracts and limit orders, and some also offer the convenience of scheduling recurring transfers. Check to see which companies offer these features, how easy they are to use, and if they come with any extra fees attached.
- Transfer time. How long will it take for your funds to get to your beneficiary? If you need to send an urgent transfer, is there an option available to do so?
- Available currencies. How many currencies does each provider offer support for? Are the major currencies you are likely to want to send available?
- Customer support. If your funds ever go missing or you ever have any problem with a transfer, it’s vital to know that the necessary help will be available. Check to see what customer support services are available and how you can access them.
Frequently asked questions
In what currencies can I transfer funds?
The available currencies vary depending on the provider you choose, so shop around to find a money transfer company that offers the transfer options you need. As a general rule, major currencies including EUR, GBP, CAD, SGD, JPY, CHF, AUD, HKD, INR and more will be supported by most companies.
I want to monitor the progress of my funds – how can I do that?
You will most likely receive a transaction ID number after paying for your transfer that you can use to check the status of your funds. Many companies allow you to track your transaction online.
Can I set up regular payments?
Yes, many banks and transfer companies offer the convenient option of setting up a recurring transfer.
Where can I compare my transfer options?
finder.com has gathered a wealth of information about US money transfer companies and the international wire services offered by banks. Start comparing transfer providers at finder.com now.