How to send, receive & request money
Payments are at the core of every small business. Whether they’re sending, receiving or requesting, business owners need a trustworthy and efficient way to pay and get paid if they want to continue operations.
Whether you have one supplier or one hundred, it can be difficult to keep track of multiple invoices flooding your inbox. Reliable payments ensure the strength and longevity of your business relationships.
Requesting and receiving business payments allows small businesses to keep their finances in order.
When you request a business payment from your clients, you can specify a due date to help inform your customer when the payment is due.
When it comes to sending payments, a fast, reliable, and cost-effective solution is vital for businesses large and small. Finances are kept in order, and business partners aren’t waiting on you to move projects and deals forward.
Small businesses will never have to worry about late payments again.
How to Send a Domestic Bank Wire
Sending bank wires requires the following information about the receiver’s account:
- Account holder name and address
- Account number
- Fedwire routing number
Domestic bank wires are generally a same-day process. They can cost between $25 and $35, depending on the amount being sent. This doesn’t include potential fees that can be charged from the recipient’s bank.
How to Send an International Bank Wire
Sending international bank wires require the same information as domestic bank wires, except they also require an IBAN/bank account number and a SWIFT/BIC code. As well, depending on where the funds are being sent, you maybe required to provide a local bank clearing code.
Costs are typically higher for international bank wires, as they usually require intermediary banks to help complete the transaction. The cost for international wires varies from $60-$80, not counting potential receiving fees or foreign exchange fees that could be added as well.
International wires are generally processed along the SWIFT network. SWIFT (The Society for Worldwide Interbank Financial Telecommunication) is an international messaging network of banks which allow clients to send or receive funds globally. The technology was first implemented in 1973 to increase the security and efficiency of international money transfers.
How to Receive a Bank Wire
Bank wires are the most common way that businesses send and receive payments, which is why it’s essential that small business owners understand the process.
However, there are differences between receiving domestic and international payments that small business owners need to be aware of.
Regulations, compliance, taxes, and distance can play a factor in how your payment moves.
Receiving Domestic Bank Wires
Regardless of whether your vendor is down the street, or on the other side of the country, small business owners send domestic payments through bank wires. Doing business locally requires you to understand how domestic business payments work.
Here is what you need to receive domestic bank wires:
- Bank name and address
- Business name or name of account holder
- Your Name
- Your Address
- Your Account Number
*This number can be found at the bottom of checks.
Be sure to double and triple check this information. Wrongly inputted account information can result in delayed payments. If the information is incorrect, the funds are automatically rerouted back into the sender’s account.
Veem does not transfer domestic funds with wires. Customers’ funds are processed using domestic ACH, or American Clearing House. The only difference between an ACH payment and a wire is that instead of being processed on an individual basis, payments processed in ACH do so in batches. This technology was designed for a high-volume of processing, meaning that money transfers generally move more efficiently.
Here’s how what you need to receive domestic ACH with Veem:
- Recipient gets an email with a button/link to claim the payment on Veem’s platform.
- Recipient inputs business type, EIN/TIN tax ID numbers, industry, address and banking information.
- If the recipient is a first-time receiver, Veem will offer them to sign up with their payments platform at no cost.
- Recipient reviews details before clicking “Accept Payment”.
Receiving International Bank Wires
If the international bank where the wire is sent from has a branch or headquarters in the US, there won’t be much of a difference compared to a domestic bank wire.
But, in every other circumstance, you’re required to hand over a little more information, and send it to multiple institutions.
To receive your international bank wire, you need to provide the sender with the following information:
- Your name and full address
- Your account number
- Your branch address
- Your bank’s international routing number
- What currency can be accepted to their bank account
Furthermore, there may be additional charges for international bank wires, as they often require intermediary banks to facilitate the transaction. Recipients may receive less than they expect, due to the additional intermediary fees that are applied to international bank wires.
How to Request a Payment
Requesting a payment through banks can be a hassle, if not impossible. The four major US banks (Bank of America, Wells Fargo, Citibank, and Chase) don’t allow clients to request payments unless they’re affiliated with a third party such as Zelle.
Zelle is a digital payments network used by US banks to transfer money between clients. At this time, Zelle doesn’t have an international payments feature, so requesting payments through the platform can only be done domestically.
Requesting a payment puts invoicing back in your hands. No more waiting for payments to arrive, and no more forgotten transactions. Requesting international wire transfers allows businesses to take control of their incoming finances to better prepare their fiscal operations.
Here’s how to request a payment through Veem:
- Input the email of the person you are requesting funds from.
- Choose the currency and amount.
- Add an invoice, due date or additional email addresses.
If this is your first payment request, you may have to enter some preliminary information. However, if you’ve done business with them before, it will be saved on Veem’s dashboard as a member of your network.
Invoicing: How to Send & Submit an Invoice
All businesses in all areas need to invoice. If they don’t they won’t be paid. Whether you’re doing it yourself or have an accountant to do it for you, it’s best to know what you need so no mistakes are made, and no money is lost.
To send an invoice, or to make sure an invoice you’ve received is correct, you’ll need this information:
- The amount due.
- The payment due date.
- The date of the invoice.
A description of the goods and services purchased.
This should include the hours worked (if what’s listed is a service), the unit price for each hour worked or other measurement unit, and the subtotal.
The recipient’s information.
This includes the address, phone number, social security or tax ID number of the intended recipient.
And that’s it. You may choose to include information on the terms of payment or payment instructions as well. For example, the preferred time period or method of payment, or the banking information where the funds are to be deposited.
- Now, here’s how to submit an invoice through Veem.
- Enter the email address and details of the business that you are invoicing.
- Upload your invoice and the amount that is being paid.
- The business you are invoicing will receive an email with payment instructions.
- Once Veem receives the payment from the business you are invoicing, they will transfer the funds into your designated account.
International invoicing is very similar to domestic invoicing. The only difference between the two is the the international person has to push the funds to Veem’s account.
It requires business name, local business tax ID, phone number, business address and banking details. Once this has been given, Veem will prompt the sender to do the deposit in the local treasury account based on the country that they’re sending funds from.
Once the deposit clears Veem’s treasury account, a payment will be issued to the receiver at little to no cost.
When businesses receive numerous payments every day, it can be difficult to keep track of finances. Payment reconciliation is the process of verifying business transactions by combining the records of both the sender and receiver. It’s what many people refer to as “balancing books.”
Veem ties in sender information, invoice details, when the invoice was sent, and amount in one bundle, so that reconciling payments is effortless.
Bank Wires and Your Accounting Software
Some financial institutions are integrated with accounting software. If they aren’t, reconciling payments may require manual input.
Although this can work, reconciliation will be subject to human error and potential delays due to late bank statements.
If you use accounting software like Xero, Quickbooks or Netsuite, Veem automatically tracks your payments sent through the platform on Quickbooks. It also stores business information to remove the need for manual entry.
A Summary of Veem’s Send, Receive, and Request Features
The ability to seamlessly send, receive, and request international and domestic payments is crucial to running any small or large business. Sending an invoice and reconciliation keep your books accurate, and your cashflow moving smoothly.
Veem is your trusted small business payments platform. Whether you’re receiving, requesting, or sending payments around the world, Veem provides a seamless, stress-free experience.