The last two decades have seen a growing number of small-to-medium enterprises and entrepreneurs taking their services and products to customers the world over. While this is good for business, a common complaint is losing out on a share of profits because of costs incurred in exchanging currencies. Fortunately, several FinTech companies have entered this realm, and all you need to do to select the right one is run an effective money transfer comparison.
Here are the key factors you need to address.
Fees And Exchange Rates
The cost of overseas money transfers depends on applicable exchange rate and fees. As long as you stick to a specialist money transfer company you can be sure of getting bank-beating rates. Fee structures followed by these companies tend to vary, so this aspect requires your particular attention. In some instances, the fee you need to pay depends on the country of the transfer’s origin, the destination country, and the payment method.
Receiving Accounts In Foreign Currencies
Businesses that receive payments in foreign currencies may benefit be opening receiving accounts in matching currencies. For example, compare receiving British pounds into your American bank account to receiving British pounds into a local British bank account. In case of the latter, you will pay no currency conversion fees.
The World First account offers receiving accounts in USD, GBP, and EUR. The TransferWise Borderless Account comes with receiving accounts in USD, GBP, and EUR. It also lets you hold funds in up to 27 currencies. With FC Exchange, you get receiving accounts in USD, GBP, EUR, and JPY. OFX provides receiving accounts in USD, GBP, EUR, CAD, AUD, HKD, and JPY.
If your business needs to make international payments frequently, you may want to make the most of exchange rate fluctuations by choosing from different hedging tools. With forward contracts, you get to lock-in existing exchange rates for varied time periods, depending on the company you select. A market order, on the other hand, gives you the ability to wait until the exchange rate reaches a more desirable level. Some leading money transfer companies that provide hedging alternatives include HiFX, Currencies Direct, World First, OFX, and FX Exchange.
This works in two ways. If you are the one sending money, find out how you get to pay for your transfer. While most money transfer companies accept wire transfers, not all accept payments via debit and credit cards. If you, on the other hand, need to receive payments from customers through an eCommerce platform, find out if the company you narrow down on provides alternatives such as debit cards, credit cards, and PayPal.
This aspect requires particular attention because you may need to get in touch with a customer service representative at some point, especially if you transfer money regularly. Some companies give their customers access to dedicated account managers, making the process a tad smoother. An easy way to find out how these companies fare against each other on this front is to turn to Trustpilot, an online platform where you get to see reviews by real customers.
Selecting the right overseas money transfer company may lead to noticeable savings for your company in the long run. What’s important, though, is that you identify your individual requirements at the onset, and follow it up by running a thorough comparison.