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27 Sep 2016

Do you know how much does a wire transfer actually cost?

Wouldn’t every AP department in North America love to know exactly how much does it cost to wire money with their bank and how much their bank are overcharging them when it comes to sending international wire payments? Sure, if your bank is nice they might share with you how much they are charging you in wire fees, but that is only a part of the charge you are paying.

 

Over 90% of North American business claim not to know how much their bank are overcharging on international wire payments?

 

In a recent survey of North American business, less than 10% claimed to know in total how much they are charged on these payments and virtually all were surprised to find out that after sender wire fees, receiver wire fees and the margin charged on the exchange rate, that fee was often close to 10% of the total amount sent. What is even more surprising is that of 200 companies surveyed, only 10 claimed to have ever compared their bank with another service provider to get a comparison. Hard to believe right? Not really, according to Barry Dowling, co-founder of TransferMate Global Payments, a provider of global payment solutions. International wire payments are expensive to send only because banks are (mind the pun) banking on business not comparing with a service like TransferMate when sending international payments.

 

Banks charging $USD45 - $USD55 for international wire payments

 

Under close scrutiny, your bank is likely charging you $USD45 - $USD55 every time you send an international wire payment; with the worst offender we have seen charging $USD80. (see below). Couple that with fees charged to the receiver/payee of typically another $USD30, it is easy to see how banks are really generating significant revenue every time a business sends a payment. What is more interesting is how much banks charge on the foreign exchange margin which is where business are really losing money and it is an area that is less than transparent.

 

So, how much does it really cost to wire money?

 

Ask yourself, when was the last time you compared when making your last international wire transfer? It’s so easy to do, simply enter details of a recent payment you may have made here providing simply the date, the currency you paid with and the amount ie USD20,000, the amount and the currency paid the payee and the amount ie €16,000 and find out instantly how much you could have saved had you checked before using your bank.

 

Banks Domestic - Incoming Domestic - Outgoing Foreign - Incoming Foreign - Outgoing
Bank of America  $15 $25 $16 $45
Chase $15 $30 $15 $45
 Wells Fargo $15 $30 $16 $40
 Citibank $15 $35 $15 $45
 U.S. Bank $20 $30 $25 $50
 Capital One $15 $25 $15 $50
 PNC Bank $15 $25 $15 $45
 TD Bank $15 $25 $15 $40
 BB&T $15 $25 $18 $65
 SunTrust Bank $15 $25 $30 $50
 AVERAGE: $15.50 $27.50 $18.00 $47.50

 

See how much your bank is overcharging you on your international payments

 

My business sends international wires. How do we reduce our outbound wire fees?

Firstly, it is not always clear what you are being charged, but looking at the table above you can expect to be paying at least $45-$55. The only real way to avoid exorbitant international outbound wire fees is to use a solution like TransferMate in conjunction with your bank.

 

How does it work?

 

It is actually quite simple. See a quick video demonstration here:

TransferMate collects payments from over 15,000 companies every month and sends payments to their payees globally. By using local bank accounts in over 50 countries, TransferMate eliminates international wire fees, speeds up payments and provide better exchange rates. Business can monitor payments live online and receive instant updates by email as payments are sent and delivered.

 

How can I compare to estimate how much TransferMate could save me?

 

 

Check in few seconds

 

or

 

Email us

 

You can also to join the daily 10 minute webinar.

 

My business receives international wires. How do we reduce our incoming wire fees?

 

Yes, it’s true, your bank also charge you for the luxury of receiving international wire payments from your international clients. To try and understand why this happens you need to simply understand the mechanics of an international inbound payment. Your clients bank collects a payment from your client and passes that payment to your bank. Your bank then transfers that payment to your bank account. Each bank net payments daily/weekly to settle those payments. Your bank charge a fee for facilitating this transaction, typically $20-$30 for the work involved in facilitating this.

 

How can I avoid these fees?

 

The only way to avoid these fees is to have funds collected locally in your clients country and to have them deposited somehow to you from within the US. This use of 2 local payments results in neither bank charging for an international wire. TransferMate, a global payment provider provide this solution.

 

How does it work?

 

Again it is actually quite simple.See a quick video demonstration here:

  • Create a free account on www.transfermate.com
  • Next upload an invoice and then enter the USD amount you are requesting.
  • Your client receives an email requesting payment, transfers payment to a TransferMate account in their local market and funds are transferred to your US bank account the same business day.

 

My accounts payable department use an accounting software to account for our bills.

 

Can TransferMate connect to our accounting software? Another great feature of TransferMate is that our solution can also speak directly with the most popular accounting software in North America directly, namely QuickBooks, Netsuite, Sap, Xero. If you use another accounting software you can import an eft file for payment in seconds. Having a direct connection into your accounting software means that not only is our solution faster and cheaper but we also eliminate all of that annoying double entry work between processing payments with your bank and having to manually re-key in data back to your accounting or ERP software.

 

Is TransferMate regulated in North America?

 

  • TransferMate is regulated in more countries in the world than your average bank.
  • As a global payment provider, TransferMates infrastructure is connected to clearing banks globally. For an insight into all of TransferMates global regulation see www.transfermate.com/en/regulations.asp.
  • In addition to its global regulation all client payments are also bonded and managed using client segregate accounts globally.

 

The team at TransferMate are immensely proud to be recognized globally as providing a truly bank beating FinTech solution to business worldwide. For a quick view of many of the awards we have won globally see www.transfermate.com/en/our-awards.html

 

Could I see some testimonials from other clients using TransferMate?

 

TransferMate provide testimonials for clients in North America and all over the world. See some of our client videos here.

 

Get the cheapest international wire fees of North America with TransferMate

 

Start Sending with the Cheapest Fees