Why is it so Hard to Send Money to the US?
June 27, 2017
The United States is a powerhouse of international business, ranking as the 2nd largest export economy and 5th most complex economy in the world. Even though, in 2015 alone, the US exported $1.38T in goods and services. Our trade relationships with the EU ($495B), China ($457B), Mexico ($291B), Canada ($288B), and India ($21B) prove that businesses across the US are dealing heavily in global trade. But it can still be hard to send money to the US.
While technology has opened up these new markets so efficiently, the legacy global payments infrastructure has lagged behind. The Veem international payment platform was developed to help small businesses to bypass all that, simply, and reap tremendous savings on wire transfer fees.
Here a few things that might help you to better understand before you send money to the U.S.
Why is Sending Money to the US still such a hassle?
The most common way for foreign consumers to send money to the US for goods and services is via a wire transfer. Unfortunately, when working with banks, small businesses are receiving their wires at alarmingly slow speeds and often footing the bills for processing. There are wire exchange horror stories that include multiple steps involving transfers between banks, tax fees, and exchange rate confusion.
The Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) are the regulating bodies in the US who provide the hoops all small businesses have to jump through when sending and receiving payments. And while those safety regulations are necessary, they can be confusing to the typical business owner.
The fees are also worrisome When processing a wire or ACH through a bank, the procedure includes a step called “using intermediary banks.” Basically, one payment is sent via multiple financial entities, and each one takes a piece for their service. While most of the fees are typically handled by the sender, US businesses who receive international B2B payments are also having to cover similar costs on their end. Add on adjustments for rate exchanges between the currencies and suddenly the US’s ability to do business globally is hindered when it comes to compensation.
The intermediary bank step also influences how long a wire transfer will take. In the Internet Age, when most computer transactions are instantaneous, it seems unnecessary to have to wait days or even weeks to wire money to the US.
With Veem, sending money to the US has never been easier.
That’s why more and more small business owners are turning to Veem. We let you bypass the banks, simplify and save.
We eliminate the fees and provide full transparency and tracking during the entire transfer process. Veem is a simpler, more efficient and more affordable global payment provider. Veem is helping small businesses thrive as their clients can quickly and simply wire money to the US in a safe and secure way.
For more information regarding exports and the US Finance regulations visit these sites:
Small Business Administration – Helpful in starting a new business, and the ongoing maintenance of dotting the i’s and crossing all the t’s.
Consumer Financial Protection Bureau – A resource of all of the US’s protocols for business.
Federal Trade Commission – Another top notch resource for US business regulations.
Federal Reserve System – The United States’ central bank.
Observation of Economic Complexity – Fascinating breakdown of which industries does what kind of trade across the globe.