Do your clients need to send an international payment? Turns out it is more complicated than you might think. Different countries have different methods and best practices for making payments, and you may not be able to use your standard technologies to send money overseas. That leaves you with only a few options for sending money internationally, and these are expensive!
If your clients are clenching their teeth at the thought of shelling out all that extra money just to make an international payment, read on. Check out our top tips for saving money on international wires and find out how you advise your clients to avoid spending needless money and time on payments.
Avoid sending wires through the bank
If you are looking to save money on international wire transfers, the bank is the last place to look. You can compare bank fees and rates in our handy Bank International Wire Fee Comparison to find out which banks are offering the better rates, but, overall, banks will always charge more than specialized providers. Plus, making an international wire transfer at the bank requires your client to bring a lot of information and fill out several forms. The whole process of making wire transfers at the bank is expensive – both for your client's wallet and their watch.
If you must use a bank, do it online
While sending international wire transfers through a bank will cost more, there may be reasons that you must use bank services. If you find yourself in this scenario, find out if your client's bank offers discounts for making international wires online. For instance, Chase Bank will give a $5 discount for making the international wire online. However, even after the discount, the fee is still very high at $25. There are cheaper options available, so it’s always better to avoid using the bank wire services all together.
Find out if you can get a better rate based on volume or dollar value
Often, your client's rate or fee will change based on the amount of money or the volume of transactions they are sending. Different providers will have different price and fee structures depending on the market they serve, so do your research to find the fee structure and rate that makes the most sense for your client's needs.
Look at alternative international payment providers
Most accountants and business owners are aware that credit unions charge less for international wire transfers than banks do, but many have not compared these rates with online payment providers. New technology companies are disrupting the payment space, offering consumers and businesses cheaper rates, lower fees, and best of all, more convenience. You can find out more about transitioning to online payments in our How to Transition guide.
Sending payments to international vendors and suppliers doesn’t need to be expensive and difficult. Using alternative providers, doing your research on the best fee and rate structures for your needs, and making your payments online can all help to make your payments cheaper and easier.
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