A plethora of small businesses the world over have used the Internet to good effect, by reaching out to customers from different parts of the world. While the growth is welcome, the process of selling services or products internationally comes with its share of challenges.
A commonly faced problem is that of having to deal with poor exchange rates and paying steep currency exchange fees. Fortunately, the online world comes to the rescue again, giving small businesses various options from which to choose.
Several international money transfer companies have come up in the last two decades, mainly because of Internet-based advances. They have successfully managed to disrupt how the industry works, much to the dismay of banks that ruled the roost until not so long ago. Now, you get to choose from a number of reputable overseas fund money companies depending on where you live.
Different aspects require your attention when selecting an overseas money transfer company and here’s what you need to know.
How Do You Want to Receive Money?
You may want to select a company according to how you wish to receive payments.
- Bank account. Most prominent money transfer companies allow transfers to bank accounts. In such a scenario, you’ll need to provide your bank account details to the sender. Depending on the company you work with and the payment method, these transfers may take one to four or more business days. Some companies that provide this service include TransferWise, World First, CurrencyFair, Currencies Direct, and TorFX.
- Email address. If you don’t want to share your bank account details with the sender, you may consider receiving funds using no more than your email address. In this case, the sender transfers funds through a company using your email address and you get to withdraw the money into your local bank account. TransferWise and PayPal let you go this way.
- Cash pickup. Some money transfer companies have cash pickup centers or tie-ups with agents, giving you the ability to collect transferred funds in the form of cash. These transfers tend to take place within a matter of minutes and may work well if you need your payment in a hurry. Examples of companies that provide this service include Azimo, WorldRemit, Western Union, and MoneyGram.
Do You Want Receiving Accounts in Different Currencies?
If you have customers in different countries and want to save on currency conversion fees each time you receive a payment, consider working with a company that provides receiving accounts in multiple currencies. Another benefit of taking this route is you may hold funds in different currencies for as long as you want.
The TransferWise Borderless Account lets you hold funds and receive payments in up to 27 currencies. It provides receiving accounts in U.S. dollars, British pounds, euros, and Australian dollars. OFX provides receiving accounts in U.S. dollars, British pounds, euros, Australian dollars, Hong Kong dollars, and Canadian dollars. World First provides receiving accounts in U.S. dollars, Canadian dollars, British pounds, euros, and Japanese yen. FC Exchange provides receiving accounts in U.S. dollars, British pounds, euros, and Japanese yen.
How Can You Pay For Your Transfer?
If you need to send money overseas, to a supplier or a freelance employee, how you wish to pay for your transfer might have a bearing on the company you should select. Most overseas fund transfer companies accept payments via bank transfers, but not all let you pay using debit or credit cards. Some, on the other hand, accept payments through local payment methods too. TransferWise, for example, lets you pay for your transfer using debit or credit cards depending on where you live, and it also accepts payments via POLi and SOFORT. WorldRemit lets you pay for your transfer using a credit card as does Frontierpay.
Choosing the right overseas money transfer company might lead to savings through competitive exchange rates and reduced fees, and you may also expect quicker turnaround times when compared to banks. However, since there are several alternatives to choose from, make sure you compare your options well.