According to a recent ABC News story, a New York seamstress fell victim to a banking error that almost cost her $39,000 and her business. The reason: using bank wire transfers to send money to suppliers abroad.
Janet Bloor makes costumes for large-scale Broadway shows, ballets, and other smaller projects. She depends on supplies from Mexico, and sends payments from her bank to her partners there.
The problem is: her supplier in Mexico didn’t receive three of her wire transfers, totalling $39,000.
When a payment gets lost, it puts a business at risk. No supplies means no costumes, and no income.
For a small business owner, this is catastrophic. It could halt cash flow, force you to pay out of pocket, and stop you from paying employees.
The bank wouldn’t help Ms. Bloor for months, which forced her to contact ABC News. Until the local news crew contacted her bank, nothing was done.
This ordeal could have cost Ms. Bloor thousands of dollars in lost revenue — and even her business.
Ms. Bloor told a New York ABC affiliate that her bank lost track of payments she sent to her Mexico-based contractor, and that they were “looking into it.” She was given no more information, and was stuck with no money, and no way to continue operating her business internationally.
After news channel intervened, the bank eventually returned Ms. Bloor’s money, including the hundreds of dollars in failed transfer fees.
Why was she charged these fees, and how could they possibly lose track of $39,000? Most importantly, who’s looking out for small businesses?
The article’s takeaway was to advise against transferring money from your computer or phone. The seamstress was lucky, it says, because she had her money sent directly from the bank.
This is misleading, and further covers up a flawed banking system that lacks the ability to track payments. When they don’t arrive at the supplier’s bank, payments cannot easily be found and recovered.
Banks are supposed to be trusted institutions. However, their outdated technology leaves small businesses vulnerable to these issues.
When these problems arise, banks don’t provide adequate support. It seems they either just don’t care enough or they simply lack the technology to adequately process a payment across borders.
How are small businesses supposed to trust their bank, with no tracking system and insufficient customer support? How are businesses supposed to expand globally if they can’t make an international wire transfer?
With Veem, the seamstress would’ve been able to track her payments end to end, and speak with live customer support to fix any problems.
Veem is a global payments network built for small businesses. With real-time payment tracking and live customer support, Veem ensures that your business payments are secure and hassle-free. Plus, Veem doesn’t charge a bank or wire fee.
Veem is an intelligent payments platform. By verifying the receiving business of your transaction, Veem minimizes fraud and protects your money. As well, the innovative payment technology finds the fastest and cheapest route for your payment.
What’s your experience with wire transfers? Let us know in the comments!