Why is it So Hard to Send Money to Germany?

The US – Germany Trade Relationship

The US and Germany enjoy a solid trading relationship. Still, when it comes time for American small businesses to send money to Germany to pay their German suppliers, they find the money exchange process confusing and cumbersome.

Navigating currency fluctuations and foreign regulations can be be an obstacle for American small business importers. Veem is here to help small businesses to transfer money around the globe more simply and transparently. Here are a few key things to consider when sending money to Germany for import goods.

Germany: America’s 6th biggest trading partner

Currently, Germany is the sixth biggest US trade partner. In 2016, German exports of products and services to the US totalled $49,362 to the US and imported $114,227 worth of goods from the U.S, according to the International Trade Administration.

The biggest German export? Cars. Thanks to world-famous manufacturers like Volkswagen and Mercedes-Benz, German car exports contribute $153 billion to the economy of Germany. But Germany’s exports are diverse. The German economy is high-tech and knowledge-driven. Germany is known for well-engineered,  innovative and competitively priced products making it a world leader in manufacturing and exports, and a very attractive supplier for American small businesses.

SMBs in the US send money to Germany for a host of reasons. Some companies outsource product development and creative services from Germany — the German service sector makes up 70% of Germany’s GDP.. Others purchase products like vehicle parts and packaged medicaments — the second and third-largest German exports, respectively.

What to know about sending money to Germany

Sending money to Germany from the US can be both expensive and complicated. Currency exchange rates between the dollar and the euro — Germany’s official unit of currency — change rapidly. Traditional international bank-to-bank transfers go through a number processes like currency exchange, and through a number of financial institutions and clearing houses before it arrives at your German supplier.

As a member of the European Union, Germany has strict transfer regulations. The Fourth Anti-Money Laundering Package (MLD4), which came into effect in June 2015, requires all international businesses to perform a risk assessment when sending recurring payments over 250 euros. Companies also need to provide information — payer name, address, account no., place of birth, etc. — when they send money to Germany. Expect further regulations, when the Fifth Anti-Money Laundering Package (MLD5) is introduced by EU member states sometime between now and the end of 2018.

Veem’s international payment solution

The Veem international payment method provides small businesses with an alternative to conventional international wire transfers. Our simple, transparent process.

Here are a few additional resources for information on trade with Germany:

Germany’s Federal Ministry of Finance

The EU’s Fourth Anti-Money Laundering Directive

Country content

You need 7 tools to master international trade. Find out what they are.



* This blog provides general information and discussion about global business payments and related subjects. The content provided in this blog ("Content”), should not be construed as and is not intended to constitute financial, legal or tax advice. You should seek the advice of professionals prior to acting upon any information contained in the Content. All Content is provided strictly “as is” and we make no warranty or representation of any kind regarding the Content.