A wire transfer is a transaction and electronic payment which allows businesses to transfer money online between bank accounts. There are multiple ways to make this transfer and it will depend on the situation and the accounts used to decide which transfer method works best. Show
Wire transfers are commonly used by businesses to transfer funds between either local or international banks to pay remote freelancers, bills, supplier invoices and other vendors. What are the different types of wire transfers?Wire transfers can be divided into several types – whether domestic or international, through a traditional bank network or a money transfer service. Understanding the differences between the types of wire transfers available can allow your business to make the best choice in transferring money at minimum cost. Traditional bank networksWith bank-to-bank wire transfers, money is transferred between multiple banks within a network using SWIFT. Each party involved in this scenario (sender and receiver) pays a fee. On top of the originating bank, correspondent banks also charge their own fees. Money transfer serviceMoney transfer services such as MoneyGram and Western Union involve fees for only one party (the sender). The receiver does not have to pay any fee. These payments are handled by transfer providers who take a cut of the transferred amount.
How to wire money the traditional way1. Choose the company you will use to wire money Which one you choose will depend on the amount of money you need to transfer, how much you are willing to spend on transfer fees, and whether you would prefer to make that transfer online. This step is perhaps the most important in a wire transfer and you need to be wary of unlicensed money transfer services which can charge exorbitant hidden additional fees. 2. Calculate the fees charged for a wire transfer In Singapore, international wire transfers or remittances typically cost approximately S$20, with exceptions. 3. List the details needed for a wire transfer
If you plan on wiring money at a physical branch, be sure to call your bank or wire transfer service ahead of time to ensure that you have any additional information needed on hand before the visit. 4. Complete the paperwork required Unlike bank transfers, wire transfers are notoriously difficult to reverse should you send the money to the wrong account. 5. Keep your receipt for tracking the transfer With a wire transfer, it’s especially important that you keep a receipt as your funds leave your account immediately upon sending it before your recipient actually receives it. This makes it all the more important to have a record of the transaction should something go wrong with the transfer. Alternative methods to wire transfersBank transferBank transfers or online banking are generally more secure methods to transfer money to another account. However, wire transfers are generally faster, which is why fees for them are higher compared to bank transfers. Telegraphic TransferTelegraphic transfers (TT), also known as telex transfers, are typically used for large, overseas transactions. It is similar to a wire transfer in the fact that it is an electronic fund transfer (EFT). Compared to wire transfers, TTs can be more expensive due to the multiple foreign currencies involved and banks applying potentially unfavourable exchange rates. Processing fees are also potentially higher as every bank – the sender’s, recipient’s and intermediary’s – takes a percentage. Also, there are no standard fees set and any financial institution is free to charge more or less. They can also be relatively quick taking on average 1 to 4 business days. Payments softwarePaying bills with payments software cuts out the costs of intermediary banks and high processing fees immediately. Instead of toggling between websites to find the money transfer service with the cheapest international rates, payment platforms like Spenmo offer your business a 0% markup FX rate. This means you don’t have to worry about fluctuating exchange rates and arbitrary hike-ups. How businesses can benefit from using Spenmo’s payments software to pay bills
Spenmo is your all-in-one platform for bill paymentsTrack the status of all your payments in a single dashboard for greater visibility with Spenmo’s expense management platform. Eliminate the worry of fluctuating money transfer fees when paying your vendors. What is the cheapest way to wire money?For a bank-to-bank transfer, MoneyGram is the cheapest option. You'll have to pay fees. For sending $200 to $1,000, average fees range from about $6 to $14 in the countries we surveyed, depending on the sending and receiving methods. MoneyGram also marks up the exchange rates anywhere from about 0.60% to nearly 8.44%.
How can I avoid a wire transfer fee?How to Avoid Wire Transfer Fees. Ask the Bank to Waive the Fee.. Use Multi-Currency Accounts.. Make Cross-Border Payments.. There's No Reason to Pay Wire Transfer Fees.. Do I pay a fee to receive a wire transfer?Wire transfers are a form of electronic payment service that enable you to send money from one bank account to another quickly and securely. Your financial institution will charge you fees for each transfer, whether you are sending or receiving the wire.
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