What You Need to Know About International Wire Transfer Time
September 13, 2017
A recent study revealed that 58% of small businesses have international customers. Given ever-increasing access to Internet services, that number is bound to grow exponentially over the next few years. In fact, 72% of the small businesses surveyed in that study said they plan to increase their international business. If small businesses want to compete in today’s market, global operations are essential. Paying close attention to international wire transfer time is key. As Karin Visnick, head of North America USForex says:
“Going global is no longer an option for successful small- and medium-sized businesses - it's a strategic imperative.”
Conducting business with an overseas supplier or customer, however, presents challenges. You may find yourself buying supplies from a company you have never visited. You may hire international staff that you have never met face to face. These are situations in which trust is crucial and needs to be earned. Making international payments to suppliers or employees can be plagued with issues. Your method of payment must be reliable, timely, and accurate. Anything less can damage both your trustworthiness and other aspects of your global relationships, leading to a situation that can make doing business internationally even more challenging.
What is the typical international wire transfer time? There is no simple answer to that question. International wire transfer time can vary depending on the country in which the receiving bank is located. One bank indicates that, although funds will come out of your account and the transfer will begin on the day you initiate the transfer, it will be another day or two before the funds reach the receiving bank. They add a caveat, however, that several factors might delay the payment of funds to the intended recipient. These factors include local bank holidays, delays by intermediary banks, other miscellaneous local factors, and whether or not the country in which the recipient is located is on the list of ‘slow-to-pay’ countries that have become known for taking their time to process wired funds. There are about 70 countries on that list. Regulatory issues may be involved, or delays can simply be the result of an underdeveloped financial system in the receiving country. The bottom line is that bank wires can leave you worried for days on end about when your money will finally reach its destination.
Another reason why international wire transfer time is unpredictable is because your funds have to pass through several pairs of hands. As the transfer makes its way from your bank account to your recipient’s bank account, your money gets handled multiple times. At each point along the way, there is the possibility of a problem occurring.
ACH (Automated Clearing House)
You have probably seen the letters ACH on your bank statements. The role of an Automated Clearing House is to distribute checks to the appropriate banks for processing. This is done electronically by a process that is handled by either the Federal Reserve or a private company that is regulated by the Federal Reserve.
The role of SWIFT, or the Society for Worldwide Interbank Financial Telecommunication, is to send messages between the banks involved in an international wire transfer. This facilitates the movement of your funds en route to their destination.
When you send US dollars to a country with a different currency, someone has to determine how many units of that currency is equivalent to the number of dollars you’re sending. For example, if you’re sending $100 to Ireland who uses the Euro, either your bank or the Irish bank has to figure out how many Euros are equal to $100. Exchange rates are often fickle and some institutions charge exorbitant fees.
So what can small businesses do to decrease the amount of time it takes to complete an international wire transfer? Veem is the solution. Veem international wire transfers are typically faster than those that go through banks because they don’t have to follow all the steps that bank-to-bank transfers have to go through.
With Veem’s streamlined process, the only people involved in the transfer of funds are you and your recipient. With three simple steps, your money is sent. You save both time and money due to the elimination of most of the pairs of hands in the process and because most of the required upfront work is also eliminated. There’s no need to gather bank account information from your recipient. Neither you nor your recipient has to pay bank fees. There’s no need for SWIFT codes. By eliminating all the middlemen, Veem eliminates all the places something can go wrong with the transfer. Here’s how simple a Veem payment is:
- Set up your profile – This requires just your email address, your name, your business name, and a link to your bank account.
- Tell Veem a little bit about the recipient. Just provide the appropriate currency and amount along with the beneficiary’s email address.
- And last – the recipient will need to confirm their bank details and their business the first time you use Veem to send them money. After the first transaction, this step will no longer be necessary, so the process is simplified even further.
Veem understands the concerns you have as a business owner. Trust is of utmost importance to you, so your payments are insured against unlikely events such as theft, hacking, and losses due to operational errors and omissions.
In order to compete in today’s marketplace, you must be able to operate on a global scale. For this reason, Veem can send money to 60 countries worldwide. Cutting middlemen means cutting the time it takes for your money to get into the hands of your recipient. Instead of spending day after day wondering whether your transfer has been completed, you can rest assured that your recipient will have their money in one to three days.
Veem knows that every small business is constantly on the lookout for ways to cut costs without sacrificing reliability or quality. Your payments are made with cutting-edge technology that allows Veem to touch your money only once instead of the multiple times a transaction is touched via a traditional bank-to-bank wire transfer.
Stop worrying about possible problems with your international payments and start using Veem. You need to be able to focus on building your business without distractions. By switching to Veem, you eliminate one of your primary concerns and free yourself to channel that energy into making your small business a huge success.